Company Presentation and Investor Update
Brisbane, June 29, 2015 AEST (ABN Newswire) - Orocobre Limited (
ASX:ORE) (TSE:ORL) are pleased to provide a company presentation and investor update regarding its operations and project updates, including its Olaroz facility and operations update, lithium market update and Borax Argentina projects.
Investment Highlights
Production guidance provided for CY15 for flagship Olaroz lithium facility
- Flagship Olaroz lithium facility commenced production in 2015 and is producing product to specification suitable for technical and battery markets
- Production ramp up has been slower than expected due to equipment limitations and early operational issues, however all production bottlenecks have been identified and most rectified
- Production is expected to meet nameplate monthly run rate of 1,450 tonnes during Q4
- Large inventory of over 32,000 tonnes of lithium carbonate equivalent in the pond system
- Strong market conditions -the right time to enter the market:
* supply constraints (Olarozis the only western world new supply)
* market growth rate > 10% p.aand > 17% for battery grade
* leading to price increases -FMC announced 10% increase in Lithium in 2014
- Olaroz profile is as a high margin/low cost and long life operation of with significant expansion potential
- Stage 2 -expansion at Olaroz -strategic interest by funding partners and end users already received
Borax Argentina operations
- Turn around in place. Profitable in FY14. Growth initiatives currently underway in borax products and minerals
- Boron a key component in a number of industrial uses, including glass, ceramics, fibreglass and fertilisers
- Owner of mining properties of a number of lithium exploration projects with a royalty stream (Cauchari, Diablillosand Sal de Vida)
Portfolio of Argentinian regional projects with attractive potential
- Proximity of Cauchari& Salinas Grandesbrines to Olarozprovides expansion potential & execution flexibility
Long-term lithium and borates markets look very strong
- Annual lithium market demand growth of approximately 10% forecast
- Continued growth in electric transport and lithium battery use has the potential for large demand growth
- >GDP growth forecast in borates
To view the company presentation, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-ORE-864776.pdf
About Orocobre Limited
Orocobre Limited is listed on the Australian Securities Exchange and Toronto Stock Exchange (
ASX:ORE) (TSE:ORL) (OTCMKTS:OROCF), and is building a substantial Argentine based industrial chemicals company through its portfolio of lithium, potash and boron assets. In partnership with Toyota Tsusho Corporation (TTC) and JEMSE, Orocobre has built and is now operating the world's first commercial, brine-based lithium operation constructed in approximately 20 years.
In 2018 Orocobre announced the Stage 2 Expansion of its flagship Olaroz Lithium Facility in Argentina. The Stage 2 Expansion will add 25,000 tpa of lithium carbonate production capacity, taking full production and capacity to 42,500 tpa of lithium carbonate for sale to industrial, technical and battery markets, positioning Orocobre as one of the world's largest and lowest cost lithium chemicals producers.
Additionally, Orocobre and Toyota Tsusho Corporation have commenced construction of the 10,000 tpa lithium hydroxide plant in Naraha, Japan. The construction of the Naraha Lithium Hydroxide Plant will further cement Orocobre's position as a global lithium chemicals producer operating at the bottom quartile of the lithium cost curve. This new hydroxide plant will be the first of its kind in Japan and will provide Orocobre product diversification suitable for different battery technologies and the potential for significant margin growth on our primary lithium carbonate being converted to battery grade lithium hydroxide.
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