Orocobre Limited (ASX: ORE, TSX: ORL) (“Orocobre” or “the Company”) wishes to provide an update on commercial and production estimates following the near finalisation of shipping schedules and pricing outcomes.
Sales of lithium carbonate are expected to be approximately 5,000 tonnes for the December half year at a price of US$12,470 per tonne, down approximately 8% on the June half. Production is expected to be approximately 6,000 tonnes for the half year and remains in line with previous guidance for FY19.
The pricing achieved recently has been affected by soft market conditions in China having a direct impact on shorter term contracts resulting in December quarter prices of approximately US$10,800 per tonne on sales of approximately 2,850 tonnes.
There was also an indirect impact as a number of customers outside China have downstream exposure to the Chinese market experiencing market/commercial pressure.
A teleconference will be held at 4.00pm (AEST, Brisbane) on Thursday 20 December 2018, which will be available through the Orocobre website http://www.orocobre.com.
