Lithium company Orocobre (ASX:ORE)
has announced record production from its Mt Cattlin mine in Western Australia and an increase in lithium production after reporting on its September quarter.
This marks the company’s first results announcement as a combined entity, following its merger with Galaxy Resources.
The company achieved record production rates at 67,931 dry metric tonnes (dmt) of spodumene concentrate produced in line with customer requirements at a unit cash cost of $469/tonne (US$351/tonne)
The company upgraded its forecast production for CY 2021 to 210,000-220,000 dmt of spodumene concentrate, up from its previous guidance of 195,000-210,000 dmt.
During the quarter, 89,640 dmt of spodumene concentrate was shipped at an average grade of 5.7 per cent and an average sales price of $1041 per tonne (US$779/dmt) which translates to just under $93.55 million (US$70 million) quarterly sales revenue from the project. Orocobre said this was the second consecutive record quarter of production from Mt Cattlin.
In light of the strong quarterly numbers, the company upgraded its Mt Cattlin production guidance for 2021 to between 210,000 and 220,000 dmt of spodumene concentrate from the previous guidance of between 195,000 and 210,000 dmt.
At the same time, Orocobre slashed forecast cash costs to between between $521 and $561 per tone (US$390 and $420) from between $561 and $601 per tonne (US$420 and $450 per tonne).
For Orocobre's Olaroz project in Argentina, the company produced 2,802 tonnes of lithium carbonate in the September quarter, up 19 per cent year on year, with 58 per cent of production being battery grade lithium carbonate, exceeding the budgeted target of 50 per cent.
Sales from Olaroz reached 2622 tonnes at $12,483 (US$9341) per tonne for quarterly sales revenue of $33 million (US$24.5 million). Total sales revenue was up 13 per cent quarter on quarter and up 133 per cent year on year, reflecting surging lithium demand and tight supply.
Orocobre is working on a number of lithium projects in various countries.
Shares in Orocobre (ASX:ORE)
are trading 0.6 per cent higher at $9.08.