ASX Share rice
Mon 17 May 2021 - 05:21:am (Sydney)

ORE Share Price

OROCOBRE LIMITEDOREMaterials

ORE Company Information

Name:

Orocobre Limited

Sector:

Basic Materials

Industry:

Other Industrial Metals & Mining

GIC Industry:

Metals & Mining

GIC Sub Industry:

Diversified Metals & Mining

Address:

Riparian Plaza Brisbane QLD Australia 4000

Phone:

61 7 3871 3985

MD, CEO & Director:

Mr. Martin Perez de Solay

CFO & Joint Company Sec.:

Mr. Neil Kaplan C.A., BAcc, CA

Chief Operations Officer:

Mr. Hersen Porta

Chief Investor Relations Officer:

Andrew Barber

Corp. Devel. Mang., Gen. Counsel & Joint Company Sec.:

Mr. Richard Stacy Anthon B.A., L.L.B., L.L.M., M.A.I.C.D., BA, LLB, FAIM, M

Chief Sales and Marketing Officer:

Mr. Christian Cortes

Commercial Exec.:

Ms. Tara Berrie

Company Overview:

Orocobre Limited engages in the exploration, development, and production of lithium in Argentina. The company's flagship project is the Olaroz Lithium Facility located in the Jujuy province of northern Argentina. It also operates two open pit mines situated in Tincalayu and Sijes producing minerals, refined products, and boric acid. In addition, the company owns 100% Cauchari Lithium Project. Orocobre Limited was incorporated in 2005 and is based in Brisbane, Australia.

ORE Share Price Information

Shares Issued:

344.16M

Market Capitalisation:

$2.21B

Revenue (TTM):

$63.99M

Revenue Per Share (TTM):

$0.22

Earnings per Share:

$0.06

Profit Margin:

-0.8756

Operating Margin (TTM):

$-0.62

Return On Assets (TTM):

$-0.02

Return On Equity (TTM):

$-0.10

Quarterly Revenue Growth (YOY):

-0.267

Gross Profit(TTM):

$5.25M

Diluted Earnings Per Share (TTM):

$-0.248

ORE CashFlow Statement

CashFlow Date:

2020-06-30

Investments:

$-1,178,000

Change To Liabilities:

$8.83M

Total Cashflow From Investing Activities:

$-131,442,000

Net Borrowings:

$38.94M

Net Income:

$-51,991,000

Total Cash From Operating Activities:

$-16,190,000

Depreciation:

$17.33M

Other Cashflow From Investing Activities:

$-264,000

Change To Inventory:

$-10,289,000

Change To Account Receivables:

$877K

Sale Purchase Of Stock:

$136K

Capital Expenditures:

$131.18M

ORE Income Statement

Income Date:

2020-06-30

Income Before Tax:

$-77,010,000

Net Income:

$-51,991,000

Gross Profit:

$23M

Operating Income:

$-77,010,000

Other Operating Expenses:

$3.64M

Interest Expense:

$24.06M

Income Tax Expense:

$-9,851,000

Total Revenue:

$77.08M

Cost Of Revenue:

$54.08M

ORE Balance Sheet

Balance Sheet Date:

2020-06-30

Intangible Assets:

$897K

Total Liabilities:

$543.30M

Total Stockholder Equity:

$602.36M

Other Current Liabilities:

$-1,457.09

Total Assets:

$1.15B

Common Stock:

$548.46M

Other Current Assets:

$5.67M

Retained Earnings:

$70.51M

Other Liabilities:

$157.75M

Other Assets:

$60.43M

Cash:

$250.38M

Total Current Liabilities:

$105.62M

Short-Term Debt:

$28.01M

Property - Plant & Equipment:

$834.26M

Net Tangible Assets:

$601.46M

Long-Term Investments:

$33.76M

Total Current Assets:

$226.90M

Long-Term Debt:

$157.61M

Net Receivables:

$16.40M

Short-Term Investments:

$1.34B

Inventory:

$30.34M

Accounts Payable:

$29.23M

Non Currrent Assets (Other):

$61.21M

Short-Term Investments:

$1.34

Non Current Liabilities Total:

$509.21M

ORE Share Price History

ORE News

19 Apr, 2021
Merger creates the 5th largest global lithium chemicals company with a diversified production base and exciting growth platform, with potential to unlock significant synergies and realise value to be shared by all shareholders. BRISBANE, Australia, April 19, 2021 (GLOBE NEWSWIRE) -- Orocobre Limited (ASX:ORE, TSX:ORL) (Orocobre) and Galaxy Resources Limited (ASX:GXY) (Galaxy) are pleased to announce that they have entered into a binding Merger Implementation Deed (MID) under which the two companies will merge via a Galaxy Scheme of Arrangement (Scheme) pursuant to which Orocobre will acquire 100% of the shares in Galaxy. Galaxy shareholders will receive 0.569 Orocobre shares for each Galaxy share held at the Scheme record date. Upon implementation of the Scheme, Orocobre shareholders will own 54.2% of the fully diluted share capital of the combined entity and Galaxy shareholders will own the remaining 45.8%. The Scheme is unanimously recommended by the Board of Galaxy and each Galaxy Director intends to vote all the shares that they hold in Galaxy in favour of the Scheme (in both cases, subject to no superior proposal emerging and the Independent Expert concluding (and continuing to conclude) that the Scheme is in the best interests of Galaxy shareholders). The Scheme is endorsed and supported by the Board of Orocobre, subject to no proposal for Orocobre emerging. As part of the proposed Scheme, Martin Rowley would become Non-Executive Chairman, Robert Hubbard would become Deputy Chairman, and Martín Pérez de Solay would remain CEO and Managing Director of the group, with a highly experienced and complementary Board and management team drawn from the combined group. A new name for the merged entity will be selected in due course representing the global reach of the new entity, which will have its head office in Buenos Aires, Argentina, a corporate headquarters on the Australian East Coast and an office in Perth. Highlights Summary Creating a Top 5 global lithium chemicals company1Highly complementary portfolio of assets delivering geographical and product diversification across brine, hard rock and vertical integration across the supply chainIndustry leading growth profile with enhanced financial position to optimise and potentially accelerate development with the ability and intent to capture further downstream valueCompelling industrial logic with significant value creation opportunities unique to this mergerHighly experienced and complementary Board and senior management teams to drive growthPotential to generate significant shareholder value with enhanced scale and financial capacity Galaxy Chairman Martin Rowley commented: “This transaction has the potential to be a significant value-creating opportunity for Galaxy and Orocobre shareholders. The Scheme provides shareholders of Galaxy with the opportunity to share in the significant benefits of being part of a larger diversified group and the synergies expected to be available to help enhance and progress our portfolio of world class assets. The merged entity's growth opportunities in both brine and hard rock position it uniquely to take advantage of expected rising EV demand for lithium.” Orocobre Chairman Robert Hubbard commented: “The logic of this merger is compelling. Both Orocobre and Galaxy shareholders, will benefit from the diversification, growth and scale of a top 5 global lithium chemicals company. I take this opportunity to re-iterate the group's ongoing commitment to the principles of delivering the highest level of transparency of our environmental, social and governance performance, the foundations upon which our assets have and will continue to be developed.” Orocobre CEO and Managing Director Martín Pérez de Solay commented: “The merger brings together assets and teams with highly complementary skills and knowledge, with a unique opportunity to create a leading independent lithium company. The merger consolidates the combined group’s position in Argentina and will give us significant operational, technical and financial flexibility to deliver the full value of our combined portfolio.” Galaxy CEO Simon Hay commented: “The merger with Orocobre represents an exciting opportunity for both Orocobre and Galaxy shareholders to consolidate and realise the full potential of our asset portfolios and technical capabilities. The transaction will allow the group to materially accelerate the development of our combined growth projects.” Orocobre and Galaxy will be hosting a joint investor call at 10.30am AEST (8.30am AWST) today, 19 April 2021. Orocobre and Galaxy are announcing their respective quarterly results today. The call can be accessed via the following link: https://services.choruscall.com.au/webcast/ubs-210419.html Transaction Summary Orocobre Limited (ASX:ORE, TSX:ORL) and Galaxy Resources Limited (ASX:GXY) have entered into a binding Merger Implementation Deed (MID) under which the two companies will merge via a Galaxy Scheme. Under the Scheme, Galaxy shareholders will receive 0.569 Orocobre shares for each Galaxy share held on the record date for the Scheme. Orocobre shareholders will own 54.2% of the fully diluted share capital of the combined entity and Galaxy shareholders will own the remaining 45.8%. The Galaxy Board of Directors unanimously recommends that Galaxy shareholders vote in favour of the Scheme and each Galaxy Director intends to vote all the shares that they hold in Galaxy in favour of the Scheme (in both cases, subject to the Independent Expert opining that the Scheme is in the best interests of Galaxy shareholders and in the absence of a superior proposal). The Orocobre Board endorses and supports the transaction in the absence of a proposal for Orocobre. Under the Scheme, Galaxy Chairman Martin Rowley would become Non-Executive Chairman, Orocobre Chairman Robert Hubbard would become Deputy Chairman, Martín Pérez de Solay would remain CEO of the group and Simon Hay will would become President of International Business reporting to the CEO. The CEO together with the Board will commence an integration process to determine the optimal management team drawing from employees from both companies based on a best fit basis. On implementation of the Scheme, the Board of Directors will comprise four Independent Directors from Orocobre (including Mr Hubbard), four Independent Directors from Galaxy (including Mr Rowley), and the CEO Mr Pérez de Solay. It is agreed that both Mr Rowley and Mr Hubbard will retire from their roles within 12 months of implementation. They will lead a process to ensure that the longer-term Board composition is ideally placed to lead the merged entity going forward. Strategic Rationale Creating a Top 5 global lithium chemicals company Creates the leading ASX lithium company and a top 5 global lithium chemicals company2One of the world’s largest, most geographically diversified producers of lithium chemicalsVertically integrated and able to service multiple markets and customers Highly complementary portfolio of assets delivering diversification of production and vertical integration Diversified across geography, lithium source and end productsCombines two complementary, large scale tier-one assetsVertically integrated product strategy for all key assets Industry leading growth profile with enhanced financial position to optimise and potentially accelerate development with the ability and intent to capture further downstream value Significant portfolio of upstream and downstream growth projectsGrowth pipeline evenly balanced between production optimisation, construction, advanced projects, brownfield expansions and early-stage projectsUnique platform of expertise, capacity and geographic presence to consider further inorganic growth opportunities Compelling industrial logic with potentially significant value creation unique to this merger Ability to apply combined management and technical expertise across the merged group and shared IP to further de-risk Sal de Vida and optimise OlarozPotential for substantial savings in Argentina from expertise sharing, employee and contractor sharing and procurement savingsMarketing synergies expected from expanded customer relationships and a broader product base Highly experienced and complementary Board and senior management teams to drive growth Global team with significant technical expertise to deliver brine projects in ArgentinaProven track record of successfully delivering projects across brine, hard rock, and processingExtensive experience within Argentina shared across the combined board and senior management team Potential to generate significant shareholder value with enhanced scale and financial capacity Combined entity expected to be included in the ASX 200 index and approach ASX 100 index thresholdsSignificantly enhanced liquidity and capital markets profileStrengthened balance sheet with pro forma gross cash of US$487m3 well placed to deliver a world class project pipeline Conditions Key conditions to the implementation of the Scheme include: Galaxy shareholder approval;Approval by the Court;The Independent Expert concluding that the Scheme is in the best interests of Galaxy shareholders and not changing, withdrawing or qualifying that conclusion;No material adverse effect or prescribed event (as each defined in the MID) occurring in relation to either Orocobre or Galaxy (as applicable); andOther conditions customary for a transaction of this nature. The MID includes reciprocal exclusivity arrangements (including “no shop”, “no talk” and “no due diligence” restrictions and notification obligations) in favour of both parties, a matching right regime in favour of Orocobre and break fees in favour of both parties. The exclusivity arrangements are subject to customary exceptions that enable the directors of Galaxy and Orocobre to comply with their respective fiduciary and / or statutory duties. Full details of the terms and conditions are set out in the MID, a copy of which is set out in Annexure A. Timetable and next steps Galaxy shareholders do not need to take any action in relation to the Scheme at this stage. A scheme booklet containing information in relation to the Scheme, including the basis for the Galaxy Board’s unanimous recommendation, an Independent Expert Report and details of the Scheme is expected to be circulated to all Galaxy shareholders in late June 2021. An indicative timetable (which remains subject to change) is set out below: EventEstimated dateFirst Court HearingLate June 2021Dispatch scheme booklet to Galaxy shareholdersLate June 2021Scheme MeetingLate July 2021Second Court hearingLate July – Early August 2021Effective DateLate July – Early August 2021Record DateEarly – Mid August 2021Implementation DateMid August 2021 Advisers Orocobre’s financial adviser is UBS AG, Australia Branch and its legal adviser is Jones Day. Galaxy’s financial adviser is Standard Chartered Bank and its legal adviser is Ashurst. Conference Call Orocobre and Galaxy will host a joint investor call at 10.30am AEST (8.30am AWST) today, 19 April 2021. The call can be accessed via the following link: https://services.choruscall.com.au/webcast/ubs-210419.html This release was authorised by the Board of Galaxy Resources Limited and the Board of Orocobre Limited. Investor Relations Enquiries Andrew BarberOrocobre LimitedM: +61 418 783 701E: abarber@orocobre.comPhoebe Lee Galaxy Resources Limited T: +61 8 9215 1700 E: info@gxy.com Media Enquiries Justin KirkwoodKirkwoodsT: +61 2 9231 5600M: +61 411 251 324E: justin@kirkwoods.com.auScott Rochfort Cannings Strategic Communications T: +61 435 878 614 E: srochfort@canningscomms.com.au IMPORTANT NOTICES This announcement is a joint announcement by Galaxy Resources Limited ACN 071 976 442 (Galaxy) and Orocobre Limited ACN 112 589 910 (Orocobre). This presentation has been prepared in relation to the proposed merger between Galaxy and Orocobre by way of scheme of arrangement under Part 5.1 of the Corporations Act 2001 (Cth) (Scheme). Under the Scheme, Orocobre would acquire 100% of the fully paid ordinary shares in Galaxy in exchange for the issue of new fully paid ordinary shares in Orocobre. The Scheme is subject to the terms and conditions described in the merger implementation deed entered into between Galaxy and Orocobre on or about the date of this announcement (Merger Implementation Deed). A copy of the Merger Implementation Deed is attached to this announcement and available on the ASX website (at www.asx.com.au). Galaxy and Orocobre have jointly prepared this announcement based on information available to them as at the date of this announcement. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this announcement. To the maximum extent permitted by law, none of Galaxy or Orocobre, their respective directors, employees, agents or advisers, or any other person, accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this announcement or its contents or otherwise arising in connection with it. Forward Looking Statements This announcement contains forward looking statements concerning Galaxy, Orocobre and the merged group which are made as at the date of this announcement (unless otherwise indicated), including statements about intentions, beliefs and expectations, plans, strategies and objectives of the directors and management of Galaxy and Orocobre for Galaxy, Orocobre and the merged group, the anticipated timing for and outcome and effects of the Scheme (including expected benefits to shareholders of Galaxy and Orocobre), indications of and guidance on synergies, future earnings or financial position or performance, anticipated production or construction or development commencement dates, costs or production outputs, capital expenditure and future demand for lithium, expectations for the ongoing development and growth potential of the merged group and the future operation of Galaxy and Orocobre. Forward looking statements are not statements of historical fact and actual events and results may differ materially from those contemplated by the forward looking statements as a result of a variety of risks, uncertainties and other factors, many of which are outside the control of Galaxy, Orocobre and the merged group. Such factors may include, among other things, risks relating to funding requirements, lithium and other commodity prices, exploration, development and operating risks (including unexpected capital or operating cost increases), production risks, competition and market risks, regulatory restrictions (including environmental regulations and associated liability, changes in regulatory restrictions or regulatory policy and potential title disputes) and risks associated with general economic conditions. Any forward-looking statements, as well as any other opinions and estimates, provided in this announcement are based on assumptions and contingencies which are subject to change without notice and may prove ultimately to be materially incorrect, as are statements about market and industry trends, which are based on interpretations of current market conditions. There can be no assurance that the Scheme will be implemented or that plans of the directors and management of Galaxy and Orocobre for the merged group will proceed as currently expected or will ultimately be successful. You are strongly cautioned not to place undue reliance on forward looking statements, including in respect of the financial or operating outlook for Galaxy, Orocobre or the merged group (including the realisation of any expected synergies), particularly in light of the current economic climate and the significant volatility, uncertainty and disruption caused by the ongoing COVID-19 pandemic. Except as required by law or the ASX listing rules, Galaxy and Orocobre assume no obligation to provide any additional or updated information or to update any forward looking statements, whether as a result of new information, future events or results, or otherwise. Nothing in this announcement will, under any circumstances (including by reason of this announcement remaining available and not being superseded or replaced by any other presentation or publication with respect to Galaxy, Orocobre or the merged group, or the subject matter of this announcement), create an implication that there has been no change in the affairs of Galaxy or Orocobre since the date of this announcement. Mineral Resources and Ore Reserves reporting (by Galaxy and Orocobre) Any information in this announcement that relates to Sal de Vida Project Mineral Resources and Ore Reserves is extracted from the ASX announcement entitled “Sal de Vida Resource and Reserve Update” dated 14 April 2021 which is available to view on www.gxy.com and www.asx.com.au. Galaxy confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that all material assumptions and technical parameters underpinning the Mineral Resources and Ore Reserves estimates in the relevant market announcement continue to apply and have not materially changed. Galaxy confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. Any information in this announcement that relates to James Bay Mineral Resources is extracted from the ASX announcement, entitled “James Bay Resource Update” dated 4 December 2017 which is available to view on www.gxy.com and www.asx.com.au. Galaxy confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the Mineral Resources in the relevant market announcement continue to apply and have not materially changed. Galaxy confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. Any information in this announcement that relates to Mt Cattlin Mineral Resources and Ore Reserves is extracted from the report entitled “2020 Resource & Reserve Update” dated 17 March 2021 which is available to view on www.gxy.com and www.asx.com.au. Galaxy confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the Mineral Resources and Ore Reserves estimates in the relevant market announcement continue to apply and have not materially changed. Galaxy confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. Orocobre is not in possession of any new information or data relating to historical estimates that materially impacts on the reliability of the estimates or Orocobre's ability to verify the historical estimates as mineral resources, in accordance with the JORC Code. The supporting information provided in the initial market announcement on 21/08/12 continues to apply and has not materially changed. Additional information relating to Orocobre's Olaroz Lithium Facility is available on Orocobre's website in “Technical Report – Salar de Olaroz Lithium-Potash Project, Argentina” dated May 13 2011, which was prepared by John Houston, Consulting Hydrogeologist, together with Mr. Michael Gunn, Consulting Processing Engineer, in accordance with NI 43-101. The information in this report that relates to exploration reporting at the Cauchari project has been prepared by Mr. Murray Brooker. Mr. Brooker is a geologist and hydrogeologist and is a Member of the Australian Institute of Geoscientists. Mr. Brooker is an employee of Hydrominex Geoscience Pty Ltd and is independent of Orocobre. Mr. Brooker has sufficient relevant experience to qualify as a competent person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. He is also a “Qualified Person” as defined in NI 43-101. Mr. Brooker consents to the inclusion in this announcement of this information in the form and context in which it appears. Note on synergies Please also refer to the investor presentation (including slides 7, 8, 13, 14 and 15) released by Galaxy and Orocobre to ASX simultaneously with this announcement for further information about the basis and assumptions underlying any statements about expected synergies in this announcement. Not for release or distribution in the United States This announcement has been prepared for publication in Australia and may not be released to U.S. wire services or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction, and neither this announcement or anything attached to this announcement shall form the basis of any contract or commitment. Any securities described in this announcement have not been, and will not be, registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States except in transactions registered under the U.S. Securities Act of 1933 or exempt from, or not subject to, the registration of the U.S. Securities Act of 1933 and applicable U.S. state securities laws. TSX matters Orocobre is an “Eligible Interlisted Issuer” for purposes of the TSX and intends to rely on the exemptions set forth in Section 602.1 of the TSX Company Manual in respect of the Scheme. The issuance of shares by Orocobre pursuant to the Scheme is subject to acceptance by the TSX. ___________________ 1 Based on market capitalisation as at ASX market close on 16 April 2021.2 Based on market capitalisation as at ASX market close on 16 April 2021.3 As at 31 March 2021 and includes restricted cash of US$108m.
Two of Australia's largest lithium producers are merging to cash in on the boom in demand for the metal due to its use in electric vehicle batteries. Australian lithium giant Orocobre is buying its rival Galaxy Resources for A$1.78bn (£997m) to create a major global player as lithium prices climb. The combined group will have a market capitalisation of A$4bn, making it the fifth most valuable lithium player in the world behind giants such as Ganfeng Lithium and Albermarle. The two companies produce about 40,000 tonnes of lithium but have expansion plans putting them on course to produce 130,000 tonnes combined, from assets in Australia, Argentina, Canada and Japan. "It's overwhelmingly positive," said Reg Spencer, of broker Canaccord Genuity. "On a high level, you have got significant synergies with both businesses having an Argentina base." Analysts predict a deficit in lithium supplies from 2027 as economies start phasing out petrol and diesel engines to make way for electric alternatives. The UK is among countries planning to ban the sale of new petrol and diesel cars, while post-pandemic stimulus money is also accelerating the shift by helping to expand charging points, for example. Martin Pérez, Orocobre's chief executive, said the merger would provide "significant operational, technical and financial flexibility to deliver the full value of our combined portfolio". Simon Hay, chief executive of Galaxy, added: "The merger represents an exciting opportunity to consolidate and realise the full potential of our asset portfolios and technical capabilities."
(Bloomberg) -- A planned $3.1 billion merger of two Australian miners is set to create one of the world’s biggest producers of lithium products key to meeting fast-growing global demand for electric vehicle batteries.The deal between Orocobre Ltd. and Galaxy Resources Ltd. is the biggest mining sector deal of the year so far, according to Bloomberg data, with shares of both companies closing at the highest in three years in Sydney. The merger would create the world’s fifth-biggest producer of lithium chemicals, the refined form of the raw materials that are used to make electric vehicle batteries.Miners to battery makers have rushed to secure lithium supply amid expectations the EV frenzy will create a structural deficit as soon as this year, and prices are already roaring back after a three-year slump. Battery demand is expected to surge tenfold by 2030, according to BloombergNEF, as the global clean-energy transition accelerates.The new company “is going to be a globally relevant player in terms of lithium chemical production,” said Reg Spencer, head of mining research at Canaccord Genuity Australia Ltd. He said that it could grow to be number three producer by 2025 if all growth projects go ahead.The A$4 billion deal values Galaxy at about A$3.53 a share, a 2.2% discount to Friday’s close, and has the backing of both company boards. Orocobre’s Chief Executive Officer Martin Perez de Solay will head the new group.Orocobre will offer 0.569 of its shares for every Galaxy share and will own 54.2% of the merged company, with Galaxy holding 45.8%. Orocobre was advised on the deal by UBS AG, while Galaxy’s adviser was Standard Chartered Plc. The deal is targeted for completion in mid August 2021.Diverse AssetsThe merged group, which has yet to be formally named, will have its headquarters in Buenos Aires, but its primary share listing will remain in Australia.The deal gives the companies a geographically diversified set of assets. Orocobre sells lithium carbonate from its Olaroz operation in Argentina, while Galaxy has a mine in Australia and growth projects in Canada and South America.Lithium raw materials are most commonly extracted at brine operations which pump liquid from underground reservoirs into vast evaporation ponds, or in traditional hard rock mines. China is the biggest player in electric vehicle batteries, with the majority of the world’s production capacity, and has a stranglehold over processing of the required commodities.The growth profile of the combined group’s existing assets put it on track to grab a 10% share of the lithium market over the next five to seven years, Perez de Solay said in an interview, backed by “a strong balance sheet that will enable us not only to deliver those projects but to continue to grow.” Top global lithium producers currently include Sociedad Quimica y Minera de Chile SA and Albemarle Corp.Argentina RiskCanaccord’s Spencer said there were risks in having the largest part of an operation in Argentina, given its history of geo-political and financial volatility, although Orocobre’s local management team had so far proven adept at navigating those risks.“From Galaxy’s perspective, we were looking for a partner which had deep in-country Argentinian experience and we’ve got that in Orocobre,” said Simon Hay, Galaxy’s CEO, who will take on the role of president of international business in the new organization. The merger will help to de-risk Galaxy’s Sal de Vida growth project in the South American country, he said.(Updates to add lithium chemicals and processing information in second, ninth paragraphs.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
BRISBANE, Australia, April 19, 2021 (GLOBE NEWSWIRE) -- MARCH QUARTER 2021 KEY HIGHLIGHTS1 Olaroz Lithium Facility (Olaroz) operations increased the Gross Cash Margin more than $1,800/tonne with the sales price up more than 50%. Costs remained near all-time lows despite much a greater proportion of sales being battery grade material which has higher production costs. Market conditions have improved materially and this will be reflected in higher June quarter product pricing. Operations continued under the established Bio-Security Protocol. OLAROZ LITHIUM FACILITY (ORE 66.5%)2 Activities continue to focus on the health and well-being of our staff, contractors and communities while maintaining production and expansion works with no COVID-19 related stoppages during the periodProduction of 3,232 tonnes was the highest achieved in a March quarter and up 18% on the previous corresponding period (PCP). It was down 13% quarter on quarter (QoQ), due mainly to a nine day planned maintenance program undertaken during February and an increase in the proportion of battery grade productSales volume of 3,032 tonnes was up 18% on PCP, but down 30% QoQ after record sales to clear inventory in the December quarterSales revenue was up 7% QoQ to US$17.7 million with the realised average price achieved up 54% to US$5,853/tonne on a free onboard basis (FOB)3 with stronger lithium market conditions. Prices have now increased by nearly 90% over the last six monthsCash costs (on a cost of goods sold basis)4 were down 3% to US$3,867/tonne on PCP excluding the export tax of US$210/tonne. Importantly, costs were only up 7% QoQ despite the proportion of battery grade sales increasing from 34% to 47% QoQGross cash margin was up materially to US$1,986/t, an improvement of US$1,812/t on the December quarter with better pricingAn agreement has been reached with Prime Planet Energy and Solutions (PPES), the automotive battery cell manufacturing joint venture between Toyota (51%) and Panasonic (49%) for supply of battery grade lithium carbonate during Japanese fiscal year 21/22 (JFY21/22). Future annual discussions will determine details for subsequent years leading to supply of 30,000 tonne per annum (ktpa) of lithium carbonate equivalent (LCE) by CY25. Orocobre has commenced dispatching product from Olaroz to a bonded warehouse in Japan in preparation for the first delivery of battery grade lithium carbonate to PPES.Lithium prices continue to recover and Orocobre price guidance has now been raised with Q4 FY21 prices expected to be approximately US$7,400/tonne (FOB)3. Budgeted FY22 production is fully contracted and subject to variable pricing related to benchmarks that will benefit from the expected continued improvement in market conditions ____________________________ 1 All figures presented in this report are unaudited2 All figures 100% Olaroz Project basis3 Orocobre report price as “FOB” (Free On Board) which excludes insurance and freight charges included in “CIF” (Cost, Insurance, Freight) pricing.Therefore, the Company’s reported prices are net of freight (shipping), insurance and sales commission. FOB prices are reported by the Company to provide clarity on the sales revenue that is recognized by SDJ, the joint venture company in Argentina4 Excludes royalties, export tax and corporate costs LITHIUM GROWTH PROJECTS During the March quarter work at Olaroz Stage 2 continued with strong adherence to the COVID-19 bio-security protocol. At the end of March, 70% of contracts had been awarded and a further 8% were at award recommendation stage. Additional accommodation facilities were completed in the quarter and more will become available in the June quarterStage 2 is expected to be complete in H1 CY22 and to commence production the following half. Production will ramp up over two years to full capacity of 25ktpa of primary grade lithium carbonate by H2 CY24Naraha Lithium Hydroxide Plant construction has continued throughout the period and is now approximately 94% complete. Commissioning will be delayed until Q1 CY22 due to COVID-19 related delays of travel to site by international techniciansA scoping study into a further expansion at Olaroz (Stage 3) commenced during the March quarter. The study will investigate options for additional production of 25-50ktpa from Olaroz, Cauchari or a combination of both, leveraging existing Stage 1 and 2 infrastructureDiscussions continue with Toyota Tsusho Corporation (TTC) regarding an expansion of lithium hydroxide production to meet forecast growth in demand BORAX ARGENTINA Overall sales volume for the December quarter was 10,282 tonnes, down 3% QoQ and 4% on PCPSales revenue was up 5% QoQ due to higher average prices that were up 8% QoQ with strong customer demand CORPORATE At 31 March 2021, Orocobre corporate had available cash of ~US$241.6 million of which US$11.1 million and US$85.5 million have been set aside as pre-completion guarantees for the Naraha debt facility and Olaroz Expansion debt facility respectivelyIncluding SDJ and Borax cash and project debt, net group cash at 31 March 2021 was US$97.7 million, down from US$119.8 million at 31 December 2020 OLAROZ LITHIUM FACILITY COVID-19 During the first quarter of CY21 the epidemiological situation in Argentina was under control, with low infections in our areas of operation. The team is planning additional preventive actions to manage any impact from an expected second wave across the country. As vaccination for all employees is not yet an option, our first and most effective barrier remains a strong Bio-security Protocol. Daily monitoring of the workforce health continues throughout 14-21 day rosters that apply to all personnel and include those employees who would normally reside in local communities. Since July 2020, the Company medical service has performed more than 9,500 COVID-19 tests (Serological and PCR). At this point, approximately 35% of our employees have had the disease and have generated high levels of antibodies. Additional accommodation facilities are being installed to enable the growing construction workforce to operate within the COVID-19 bio-security protocol. SAFETY Health and safety remains a key priority for the Company. One Lost Time Injury (LTI) was recorded with a contractor at Olaroz on February 27th after 446 days without an LTI in both the operations and the expansion project. The worker involved was provided immediate medical assistance and is now recovering. In March the ISO 14001 & 9001 & 18001 audit was performed. No major findings were reported and recertification was granted. A new work permit system and hazard analysis tool will be implemented in the next several weeks. The Dupont programs continue to enhance our safety culture and remain a key priority. Orocobre is consolidating all key leading and lagging indicators following the ACSI Future Health and Safety reporting. OPERATIONAL UPDATE QUALITY Brine concentration remains well above prior years supporting excellent plant stability and reliability. The continuing high process capability ratio (CpK) demonstrates the ongoing ability of Olaroz to produce lithium carbonate well within specification limits. Product quality continues to improve with reduced magnetic particles and increased product consistency. PRODUCTION Production for the March quarter was 3,232 tonnes, up 18% from 2,732 tonnes in the PCP with 55% of production being battery grade lithium carbonate. Brine concentration remains at higher levels than in recent years resulting in high daily production rates, higher plant recovery and continued low costs. A nine day plant shutdown was undertaken in February for planned maintenance. SALES AND COMMERCIAL Product sales were 3,032 tonnes of lithium carbonate up 20% on PCP but down 30% QoQ after a strong December quarter. Total sales revenue was up 7% QoQ to US$17.7 million and up 46% on PCP. The average price received was up 54% QoQ to US$5,853/tonne on an FOB3 basis and up 22% on PCP with stronger pricing relative to a year ago. Approximately half the sales in the March quarter reflect contracts that were agreed in late November and early December prior to significant movement in lithium prices. More than 50% of forecast sales for the June 2021 quarter are expected to be allocated to long term battery grade contracts as Olaroz commences delivering product to PPES. Such percentage of battery grade product sales is expected to increase into FY22. Several customers have recently expressed an interest in increasing their volume offtake allocation for FY22 as they struggle to secure volumes with other vendors suggesting that the market is now in a deficit position. Budgeted production at Olaroz for FY22 is fully sold and additional volumes will only become available when Olaroz Stage 2 commences production in the second half of CY22. The estimated average price for the June 2021 quarter is expected to be approximately US$7,400/tonne FOB3, subject to shipping schedules. PPES MOU An agreement has been reached with Prime Planet Energy and Solutions (PPES), the automotive battery cell manufacturing joint venture between Toyota (51%) and Panasonic (49%) for supply of battery grade lithium carbonate during Japanese fiscal year 21/22 (JFY21/22). Future annual discussions will determine details for subsequent years leading to supply of 30,000 tonne per annum (tpa) of lithium carbonate equivalent (LCE) by CY25. Orocobre has commenced dispatching product from Olaroz to a bonded warehouse in Japan in preparation for the first delivery of battery grade lithium carbonate to PPES. COSTS/MARGINS Cash cost of goods sold for the quarter (including COVID-19 related costs) decreased by 3% on PCP remaining near all-time lows at US$3,867/tonne4. This excludes export duties for the quarter of US$210/tonne. Importantly, costs increased by only 7% QoQ, while the proportion of battery grade sales increased from 34% to 47% QoQ. Total cost of sales has been maintained at low levels demonstrating the significant focus and reduction of fixed costs within the operating business. Lower reagent usage due to improved process efficiency and an increase in the export incentive refund with higher product prices have also contributed to the strong cost performance. Gross cash margins for the quarter returned to being strongly positive at US$1986/tonne, this is expected to further improve with better pricing in Q4 FY21. STAGE 2 EXPANSION AT OLAROZ ACHIEVED MILESTONES Commissioned and partially operating the brine handling system for Stage 28 out of 9 harvestable ponds are in service and 5 out 22 evaporation ponds are in serviceLime plant #2 has been operating since FebruaryTK1100, a new brine collection pond has been in operation since January4 new wells are in service and four additional wells in the final stages of completion FUTURE MILESTONES Work in H2 CY21 will focus on the delivery of additional gas fired power generators, completion of pond construction and construction of lime plant #3. In the first half of CY22 all new wells, the soda ash facilities and carbonation plant will be completed. PROJECT STATUS During the March quarter work at Olaroz Stage 2 continued with strong adherence the COVID-19 bio-security protocol. At the end of March, 70% of contracts had been awarded and a further 8% were at award recommendation stage. Additional accommodation facilities were completed in the quarter and more will become available in the June quarter. Stage 2 is expected to be complete in H1 CY22 and to commence production the following half. Production will ramp up over two years to full capacity of 25ktpa of primary grade lithium carbonate by H2 CY24. INFRASTRUCTUREConstruction camp expansion works continue with 250 additional beds available in March. It is expected another 200 beds will become available in April. Further beds will be available in May to cater for the rapidly growing construction workforce which currently is ~500 personnel. The camp mess has also been completed and further sewage treatment facilities are being planned. A variety of medium voltage lines and other electrical works are in progress. Overall infrastructure works are now 75% complete. WELLS AND BRINE GATHERINGBrine extraction works are now 58% complete. Six wells are currently at various stages of completion. Five drill rigs are currently in operation. Brine gathering networks are progressively being installed with the TK1100 facility operating since January. PONDSPonds construction is well progressed with approximately three quarters of work completed. Geomembranes continue to be installed as ponds are completed. Civil and electrical work is underway at six ponds. A total of 13 harvestable and non-harvestable ponds have now been completed, a further 17 are under various stages of construction. CARBONATION, LIME AND SODA ASH FACILITIESCarbonate plant construction commenced in February along with soda ash handling facilities. Earthworks are advancing with foundations being established. All of the steel structure for the carbonation and soda ash plants has now arrived at site including cladding, roofing and overhead cranes. Planning for lime plant #3 is well underway and contracts are likely to be awarded by the end of April. This additional liming capacity is expected to be available by the end of the year. NARAHA LITHIUM HYDROXIDE PLANT PROGRESS TO DATE The Naraha Plant, the first of its kind to be built in Japan, is designed to convert primary grade lithium carbonate feedstock into battery grade lithium hydroxide. Feedstock for the 10,000 tpa Naraha Plant will be sourced from the Olaroz Lithium Facility’s Stage 2 Expansion that will produce primary grade (>99.0% Li2CO3) lithium carbonate. Since construction commenced at the Naraha Plant there have been no LTIs recorded with nearly 100,000 hours worked on the project. An earthquake occurred on 13 February which caused only minor damage to the office building, no defects have been found in the plant. A further earthquake occurred in March with no damage or injury to personnel or the site. At 31 March, approximately US$50 million has been spent on engineering, civil works, electrical, instrumentation, fabrication and procurement at the Naraha Plant. Capex spend has remained relatively static due to the agreed payment schedule with Veolia, the EPC contractor. Site operations have continued throughout the period with construction now approximately 94% complete. Commissioning will be delayed until Q1 CY22 due to COVID-19 related delays of travel to site by Veolia’s international commissioning engineers and technicians. SHARED VALUE PROGRAM AND COMMUNITY The Shared Value team built on their knowledge of local communities and sustainability with a combination of remote work and a number of visits to communities that are directly and indirectly influenced by the company’s operations. Key actions during the quarter included: Community Relations Management of work rosters within COVID-19 limitations: Communication with Community Coordinators, local government contacts and local suppliers to manage and confirm the date and location of PCR sample collection (COVID-19 tests) and the transfer schedules for rostered employeesIdentification of risks and opportunities for the social development of communities within the COVID-19 environment. COVID-19 has presented new challenges for the management of interaction and implementation of programs within local communitiesOngoing engagement and field visits with community leaders and community members to respond to their queries related to development programsThe expansion project director and team made presentations to local communities on plans and opportunities for local suppliers and future employee needs Community development programs Program to Support Food Independence: Family Food Production Units UPAFA program to encourage independent food supply in local communities continued during the quarter. In Coranzuli families are finishing the harvesting stage with excellent results for vegetables and fruit such as chard, lettuce, tomatoes, beans, strawberries and raspberries. In Olaroz the community continued with construction of greenhouses that are now 70% complete. Plans and materials are being arranged for a planting of winter crops which is expected in May. Sustainable Management of Vicuñas at Olaroz ChicoParticipants in the Vicuna management program at Olaroz Chico were supported in the development of a conservation and management plan. Family Farming program technicians from the National Institute of Technology (Jujuy) and community members have been planning and obtaining approval for construction of additional infrastructure for management of the Vicuna herd. MARKET The lithium market continued recovering during the March 2021 quarter. Average global prices for lithium carbonate increased by more than 50% from the December 2020 quarter as demand from cathode manufacturers continued to increase production in response to the Electric Vehicle (EV) driven demand. DEMAND Demand for Electric Vehicles (EVs) continues to accelerate with global sales during January and February 2021 more than double those of January and February 2020 as sales were constrained by COVID-19 in China. EV models with lithium carbonate dominant chemistry batteries continue to be the preference in China where the battery grade lithium carbonate spot prices increased approximately 90% during the March quarter as cathode manufacturers rushed to secure supply. Prices in Asia-ex China increased by approximately 25% during the quarter. Support from national governments towards EVs strengthened during the March 2021 quarter particularly in North America with the Biden administration committing US$174 billion investment in EVs through a mix of subsidies to individuals and the private sector, as well as replacing the government’s vehicle fleet with EVs. Longer- term EV demand outlook has been revised upwards by a range of market analysts in recent months, suggesting that estimated global sales will increase from 3.2 million units in 2020 to approximately 14 million units by 2025. Demand for lithium chemicals is expected to increase to approximately 1 million tonnes by 2025 following recent investment commitments on battery giga factories by the private sector. SUPPLY Lithium chemicals production continued at reduced capacity in China during March 2021 which was impacted by the spring holiday as well as restricted feedstock supply from Chinese brines due to cold weather conditions and reduced production capacity from Australian spodumene producers. Such market dynamics coupled with increased demand from cathode manufacturers led to further inventory reductions in the region and pricing increases for spodumene and lithium chemicals in the spot market. In response to the favourable market conditions, Australian spodumene producers and Chinese convertors are expected to increase production/conversion capacity throughout the rest of CY2021. Additional lithium chemicals production is also anticipated from South American producers towards late 2021. However, it’s estimated that global lithium chemicals production will not be able to catch up with growth in demand in the short term. BORAX ARGENTINA S.A. SAFETY Borax has improved safety performance and the team have worked hard to restore the safety commitment and accountability at all levels of the operating business. Subsequent to the safety review last year, there have not been any LTI or Environmental incidents at the three operational Borax sites. As at 31st March, Sijes recorded 274 days free of accidents, Tincalayu achieved 258 days and Campo Quijano has had 217 days without an LTI. This quarter Borax successfully finished the annual shutdown in Sijes and in Tincalayu without any Safety or Environmental incidents. A Monthly Safety Committee was developed. Initiatives that will be implemented over the rest of the year include the development of a local emergency response team, improvement of the work permit safety system and the use of Intelex workflows to report, investigate and track corrective actions of adverse events. The Management team is setting objectives for the next financial year to fully implement leading and lagging indicators. Some of the Dupont initiatives implemented in SDJ are being considered for implementation at Borax. PRODUCTION, SALES AND OPERATIONAL UPDATE The March quarter achieved sales of 10,282 tonnes, down 3% QoQ and down approximately 4% from the PCP. Total sales revenue was up 5% QoQ with the average price received up 8% QoQ. Operations have continued under the Orocobre Bio-security Protocol. COMBINED PRODUCT SALES VOLUME BY QUARTER CORPORATE AND ADMINISTRATION FINANCE CASH BALANCE At 31 March 2021, Orocobre corporate had available cash of ~US$241.6 million of which US$11.1 million and US$85.5 million have been set aside as pre-completion guarantees for the Naraha debt facility and Olaroz Expansion debt facility respectively. The US$5.2 million corporate net cash reduction from the previous quarter was the result of US$3.8 million advanced to SDJ Joint Venture as a shareholder loan to largely fund finance payments, US$1.5 million corporate costs and US$0.2 million other project payments partially offset by US$ 0.3 million of interest income. Including SDJ and Borax cash and project debt, net group cash at 31 March 2021 was US$97.7 million, down from US$119.8 million at 31 December 2020 as calculated below and after including Naraha facilities: ARGENTINA ECONOMIC CONDITIONS Currency: The official foreign exchange rate depreciated by 9.3% in the March quarter from AR$84.15 at 31 December 2020, to AR$92 at 31 March 2021. The accumulated 12-month period from 1 April 2020 to 31 March 2021 resulted in a ~43% devaluation of the AR$ against the US$. Inflation: March inflation was 4.8% and accumulated ~13% in the quarter. The accumulated 12-month period from 1 April 2020 to 31 March 2021 resulted in inflation of approximately ~43%. Authorised by: Rick AnthonJoint Company Secretary FOR FURTHER INFORMATION PLEASE CONTACT: Andrew BarberChief Investor Relations OfficerOrocobre Limited P: +61 7 3720 9088 M: +61 418 783 701 E: abarber@orocobre.comW: www.orocobre.com
MELBOURNE (Reuters) -Australian lithium miner Orocobre Ltd is buying smaller domestic peer Galaxy Resources for $1.4 billion to create the world's fifth most valuable producer of the key raw material for electric vehicle batteries. The all-stock deal for A$1.78 billion ($1.38 billion)announced on Monday, which will also establish Australia's most valuable lithium miner with a A$4 billion market capitalisation, comes as demand for the material is booming amid a jump in global sales of electric vehicles. The new entity will have hard rock, brine, and chemicals assets across Australia, Argentina, Canada and Japan, and will be able to accelerate development and sell into global markets.
13 Apr, 2021
BRISBANE, Australia, April 13, 2021 (GLOBE NEWSWIRE) -- Orocobre Limited (ASX: ORE, TSX: ORL) (“Orocobre” or “the Company”) advises that following a successful sales campaign and strong market demand for Olaroz lithium carbonate during the March 2021 quarter, sales were 3,032 tonnes at US$5,853/tonne FOB1, with pricing up more than 50% on the December 2020 quarter. Lithium prices received by Olaroz are now up nearly 90% in the last six months. Orocobre also advises that prices for the June 2021 quarter are expected to be approximately US$7,400/tonne FOB1, subject to shipping schedules. This pricing will be the highest pricing received since June 2019 and is expected to result in H2 FY21 pricing being approximately 20% higher than prior guidance. Forward sales enquiries for all grades of Olaroz lithium carbonate remain strong and all budgeted FY22 production is fully sold and subject to variable pricing that will benefit from the expected continued improvement in market conditions. Additional production will become available when Olaroz Stage 2 commences production in the second half of CY22. Full details of March quarter performance will be released in the production report on 21 April 2021 with a management briefing at 11.15am AEST (Sydney, Melbourne, Brisbane) via a webcast available at www.orocobre.com. Written questions may be submitted via the webcast. An archive copy of the briefing and Q&A session will subsequently be made available on the Company website. Authorised by: Richard S. AnthonJoint Company Secretary __________________________________1 Orocobre report price as “FOB” (Free On Board) which excludes insurance and freight charges included in “CIF” (Cost, Insurance, Freight) pricing. Therefore, the Company’s reported prices are net of freight (shipping), insurance and sales commission. FOB prices are reported by the Company to provide clarity on the sales revenue that is recognized by SDJ, the joint venture company in Argentina. For more information please contact: Andrew BarberChief Investor Relations Officer Orocobre Limited T: +61 7 3871 3985 M: +61 418 783 701 E: abarber@orocobre.comW: www.orocobre.com Twitter: https://twitter.com/OrocobreLimitedLinkedIn: https://www.linkedin.com/company/orocobre-limitedFacebook: https://www.facebook.com/OrocobreLimited/Instagram: https://www.instagram.com/orocobre/YouTube: https://www.youtube.com/OrocobreLimited Click here to subscribe to the Orocobre e-Newsletter About Orocobre Limited Orocobre Limited (Orocobre) is a dynamic global lithium carbonate producer and an established producer of boron. Orocobre is dual listed on the Australia and Toronto Stock Exchanges (ASX: ORE), (TSX: ORL). Orocobre’s interests include its Olaroz Lithium Facility in Northern Argentina, a material JORC Resource in the adjacent Cauchari Basin and Borax Argentina, an established boron minerals and refined chemicals producer. The Company has commenced an expansion at Olaroz and construction of the Naraha Lithium Hydroxide Plant in Japan. For further information, please visit www.orocobre.com.
09 Mar, 2021
Every investor in Orocobre Limited ( ASX:ORE ) should be aware of the most powerful shareholder groups. Institutions...
26 Feb, 2021
NEW YORK, NY / ACCESSWIRE / February 26, 2021 / Orocobre Ltd. (OTC PINK:OROCF) will be discussing their earnings results in their 2021 First Half Earnings call to be held on February 26, 2021 at 10:30 AM Eastern Time.
BRISBANE, Australia, Feb. 26, 2021 (GLOBE NEWSWIRE) -- Orocobre Limited (ASX: ORE, TSX: ORL) (Orocobre or the Company), a dynamic global lithium chemicals producer, provides its financial results for the half year ended 31 December 2020 (H1 FY21). Highlights: The lithium market has rebounded and Orocobre prices for H2 FY21 are expected to increase >50% to approximately US$5,500/tonneA successful cost reduction program has seen quarterly cash cost of sales reduce by 28% since September 2019Brine concentrations are higher and more stable than previous years delivering higher plant recovery, better quality and more consistent productSuccessful capital raise of US$119.4 million, net of feesStatutory consolidated group net loss of US$29.1 million for H1 FY21 is down from a loss of US$18.9 million in the previous corresponding period (PCP). The underlying net loss after tax1 for the group is US$27.3 million with adjustments for restructuring costs, impairment, foreign exchange and other one-off itemsAttributable group EBITDAIX1 is negative US$6.3 million, down from positive US$2.2 million, due to weak market pricesTotal production of 6,079 tonnes of lithium carbonate, down 9% on pcp due to COVID-19 related operational restrictions and market demandOlaroz Lithium Facility results impacted by a weak September quarter, but conditions are improving: revenue of US$27 million, on sales of 7,738 tonnes of lithium carbonate (up 21% on pcp)EBITDAIX1 loss of US$3.9 million, down from US $6.1 million profit due to average sales priceAverage sales price received of US$3,492/tonne FOB2, down from US$6,157/tonne FOB2 in PCP As of 31 December 2020, Orocobre Group (corporate + 100% SDJ PTE + Borax) had cash of US$262.3 million following the capital raiseContract position has improved significantlyProgress is being made with the construction of the Stage 2 Expansion of the Olaroz Lithium Facility and Naraha Lithium Hydroxide Plant Orocobre Managing Director and CEO, Mr Martín Pérez de Solay said, “Orocobre has continued to deliver improved operating performance despite COVID-19 disruptions. Our business was impacted in the September quarter by weak market conditions, however the market has improved since the start of the December quarter. “Our operating strategy retains a focus on safety, quality and productivity which will improve profitability in the future as prices return to a sustainable level. Cost management remains paramount and we continue to eliminate non-essential spend. “Construction of our growth projects is progressing at the Naraha Lithium Hydroxide Plant and the Stage 2 expansion of Olaroz. We are now looking to the future with a study into Stage 3 at Olaroz and additional lithium hydroxide production,” he said. Future pricing Subject to market and operating conditions Orocobre expects the average sales price for H2 FY21 to be approximately US$5,500 per tonne (FOB)2 This announcement has been approved by the Orocobre Limited Board of Directors For more information please contact: Andrew BarberChief Investor Relations OfficerOrocobre LimitedT: +61 7 3720 9088M: +61 418 783 701E: abarber@orocobre.comW: www.orocobre.com Twitter: https://twitter.com/OrocobreLimitedLinkedIn: https://www.linkedin.com/company/orocobre-limitedFacebook: https://www.facebook.com/OrocobreLimited/Instagram: https://www.instagram.com/orocobre/YouTube: https://www.youtube.com/OrocobreLimited Click here to subscribe to the Orocobre e-Newsletter Notes: Unless otherwise stated, all financial data in this release is quoted in US Dollars. Orocobre’s results are reported under International Financial Reporting Standards (IFRS). This report also includes certain non-IFRS financial information, including the following: NCI is the non-controlling interest which represents the portion of equity ownership in SDJ PTEEBITDAIX is ‘Earnings before interest, tax, depreciation and amortisation, impairment and foreign currency gains/(losses), share of associate losses and share of profit from joint ventures’EBITIX is ‘Earnings before interest, tax, impairment and foreign currency gains/(losses), share of associate losses and share of profit from joint ventures’EBTIX is ‘Earnings before tax, impairment and foreign currency gains/(losses), share of associate losses and share of profit from joint ventures’‘underlying NPAT’ and ‘underlying EBITDAIX’ being statutory profit being adjusted for certain one off and non-recurring items Financial data has been translated to US Dollars using average exchange rates for the relevant period in the income statement. About Orocobre LimitedOrocobre Limited (Orocobre) is a dynamic global lithium carbonate producer and an established producer of boron. Orocobre is dual listed on the Australia and Toronto Stock Exchanges (ASX: ORE), (TSX: ORL). Orocobre’s interests include its Olaroz Lithium Facility in Northern Argentina, a material JORC Resource in the adjacent Cauchari Basin and Borax Argentina, an established boron minerals and refined chemicals producer. The Company has commenced an expansion at Olaroz and construction of the Naraha Lithium Hydroxide Plant in Japan. For further information, please visit www.orocobre.com. 1 see notes at end of release.2 Orocobre reports price as FOB (Free on Board) which excludes insurance and freight charges included in CIF (Cost, Insurance, Freight) pricing. Therefore, the Company’s reported prices are net of freight (shipping), insurance and sales commission. FOB prices are reported by the Company to provide clarity on the sales revenue that is recognized by Sales de Jujuy S.A., the joint venture company in Argentina managing the Olaroz Lithium Facility.
17 Feb, 2021
BRISBANE, Australia, Feb. 17, 2021 (GLOBE NEWSWIRE) -- Orocobre Limited (ASX: ORE, TSX: ORL) (“Orocobre” or “the Company”) will release the 31 December 2020 Half-Year Financial Results on Friday 26 February 2021. Managing Director and CEO, Mr. Martín Pérez de Solay will conduct a live webcast briefing at 10:30am AEST (Brisbane time), 11.30am AEDT (Sydney, Melbourne time). The webcast briefing will be available via Orocobre’s website www.orocobre.com. Written questions may be submitted via the webcast. An archive copy of the briefing and Q&A session will subsequently be made available on the Company website. Neil KaplanJoint Company Secretary For more information please contact: Andrew BarberChief Investor Relations Officer Orocobre Limited T: +61 7 3871 3985 M: +61 418 783 701 E: abarber@orocobre.comW: www.orocobre.com Twitter: https://twitter.com/OrocobreLimitedLinkedIn: https://www.linkedin.com/company/orocobre-limitedFacebook: https://www.facebook.com/OrocobreLimited/Instagram: https://www.instagram.com/orocobre/YouTube: https://www.youtube.com/OrocobreLimited Click here to subscribe to the Orocobre e-Newsletter
14 Feb, 2021
BRISBANE, Australia, Feb. 15, 2021 (GLOBE NEWSWIRE) -- Orocobre Limited (ASX: ORE, TSX: ORL) (“Orocobre” or “the Company”) advises that following an earthquake late Saturday (13 February 2021, JST) off the coast of Fukushima Prefecture, north east Japan, there are no injuries to employees at the Naraha Lithium Hydroxide Plant. An initial inspection of the plant with the construction contractor, Veolia Jenets on the morning of 14 February found some minor damage to the site office but did not find any visible defects to plant equipment. Additionally, there is no damage to site infrastructure services. A further inspection will be undertaken on 15 February to confirm the initial observations and assure the safety of the site prior to the recommencement of construction work. Authorised by: Richard S. AnthonJoint Company Secretary For more information please contact: Andrew BarberChief Investor Relations OfficerOrocobre LimitedT: +61 7 3871 3985M: +61 418 783 701E: abarber@orocobre.comW: www.orocobre.com Twitter: https://twitter.com/OrocobreLimitedLinkedIn: https://www.linkedin.com/company/orocobre-limitedFacebook: https://www.facebook.com/OrocobreLimited/Instagram: https://www.instagram.com/orocobre/YouTube: https://www.youtube.com/OrocobreLimited Click here to subscribe to the Orocobre e-Newsletter
27 Jan, 2021
BRISBANE, Australia, Jan. 27, 2021 (GLOBE NEWSWIRE) -- DECEMBER QUARTER 2020 KEY HIGHLIGHTS1 Olaroz Lithium Facility (Olaroz) operations returned to being Gross Cash Margin positive with record sales volume during the quarter while costs declined to near all-time lows. Quarterly production volumes were the third highest since operations commenced. Low costs and strong, stable production mean the business is well positioned to participate in the improving lithium market. Operations continued under the established Bio-Security Protocol with limits on the number of personnel on site for both production and expansion works. OLAROZ LITHIUM FACILITY (ORE 66.5%)2 Activities continue to focus on the health and well-being of our staff, contractors and communities while maintaining production and expansion worksOlaroz operations stopped for two days during October while successfully responding to a COVID-19 outbreak amongst 35 employeesProduction of 3,727 tonnes was up 58% quarter on quarter (QoQ), responding to increased demand and reflecting on-going plant stability and improved operating practicesSales volume was up 28% QoQ to a new record of 4,345 tonnes, while sales revenue was up 57% QoQ to US$16.5 million. The realised average price achieved was US$3,797/tonne on a free on board basis (FOB)3, up 22% QoQ. Sales volumes were 34% battery grade lithium carbonate and the remainder primary grade lithium carbonateCash costs (on a cost of goods sold basis)4 were US$3,623/tonne, down 9% QoQ excluding the export tax of US$85/tonne. All additional costs incurred as a result of COVID-19 restrictions and US$360,000 of non-recurring COVID-19 related wage subsidies from the Argentina government are included. Excluding the subsidies, the cost of sales remains the lowest level for more than three yearsGross cash margin was positive at US$174/t, an improvement of US$1,046/t on the September quarter with better pricing and lower costsFollowing the signature of an MOU in September, discussions with Prime Planet Energy and Solutions (PPES), an automotive battery cell manufacturing joint venture between Toyota (51%) and Panasonic (49%) are continuing for the supply of 30,000 tonne per annum (ktpa) of lithium carbonate equivalent (LCE) by CY25Lithium prices and volumes continue to recover and realised H2 FY21 prices are expected to increase >50% to approximately US$5,500/tonne (FOB) LITHIUM GROWTH PROJECTS Construction work on Stage 2 continued to be impacted during the quarter by COVID-19 restrictions. Construction has progressed to approximately 50% completion. Additional accommodation has been constructed for expansion personnel so that appropriate social distancing can be maintained as the workforce increases throughout 2021. Following a further review, Stage 2 is expected to commence production in H2 CY22, ramping up over two years to full capacity of 25,000 tonnes per annum of primary grade lithium carbonate by H2 CY24Naraha Lithium Hydroxide Plant construction has continued throughout the period with activities now approximately 89% completeA scoping study into a further expansion at Olaroz (Stage 3) will commence during the March quarter. The study will investigate options for additional production of 25-50ktpa from Olaroz, Cauchari or a combination of both, leveraging existing Stage 2 and 3 infrastructureInitial discussions have taken place with Toyota Tsusho Corporation (TTC) regarding an expansion of lithium hydroxide production as Naraha Stage 1 will be fully contracted based on ongoing negotiations with potential customers BORAX ARGENTINA Overall sales volume for the December quarter was 10,573 tonnes, up 18% QoQ and up 23% on the previous corresponding period (PCP)Sales revenue was up 14% QoQ due to increased volume, however the average price received was down 3% QoQ due to the sales mix CORPORATE During the quarter Orocobre completed a Share Purchase Plan (SPP) which raised funds of US$30.3 million following a placement in the September quarter. Total funds raised were approximately A$169 million before feesAs at 31 December 2020, Orocobre corporate had available cash of ~US$246.8 million of which US$11.1 million and US$59.6 million have been set aside as pre-completion guarantees for the Naraha debt facility and Olaroz Expansion debt facility respectivelyIncluding SDJ, Borax and Naraha cash and project debt, net group cash at 31 December 2020 was US$119.8 million, up from US$102.6 million at 30 September 2020 OLAROZ LITHIUM FACILITY Click here for more information on Olaroz COVID-19 As announced to the ASX on 26 October, COVID-19 infection was identified for the first time at our operations in 35 employees. In accordance with the Bio-Security Protocol, isolation procedures and contract tracing were conducted. Affected staff were relocated to Jujuy for medical treatment as required and have since recovered and returned to work. Operations were suspended for two days to allow cleaning and rotation of staff. Daily monitoring of workforce health continues throughout 14-21 day rosters that apply to all personnel and include those employees who would normally reside in local communities. Since July 2020, the Company medical service has performed more than 5,200 COVID-19 tests (Serological and PCR). SAFETY Health and safety remains a key priority for the Company. No Lost Time Injuries (LTI) were recorded at Olaroz during the first two quarters of FY21. As at 31st December the operations recorded 342 days without an LTI. The Intelex database for HSE and Quality events management was officially launched during the December quarter. At this stage the system is used extensively by mid-line supervisors and managers. Intelex serves as an event management system following a workflow that allows the team to report, check, classify, investigate, develop corrective and preventive action plans. During the remainder of the year Olaroz will complete the transition from the current system (SMC) to Intelex. Lagging and key leading indicators have been defined to measure and improve safety and environmental performance and are now tracked through the Intelex database. The Dupont programs continue to enhance our safety culture and remain a key priority even during the current COVID-19 situation. OPERATIONAL UPDATE QUALITY Plant stability and reliability remains very good with improved process capability (CpK). The process capability index or process capability ratio is a statistical measure of process capability which is the ability of a process to produce output within specification limits. Brine feed concentration to the plant also continues to improve year on year with December quarter concentrations over 8,000ppm reflecting some seasonal variation, additional pond capacity and strong underlying improvement in pond management practices. Product quality continues to improve with reduced magnetic particles and increased product consistency. PRODUCTION Production for the December quarter was third highest achieved by Olaroz at 3,727 tonnes up 4% from 3,586 tonnes in the PCP. Brine concentration remains at higher levels than in recent years resulting in high daily production rates, higher plant recovery and further decreases in costs, even when COVID-19 related costs are included. Production of battery grade lithium carbonate was 34% of total production, up from 22% in the September quarter. SALES AND COMMERCIAL Product sales were a record at 4,345 tonnes of lithium carbonate up 32% on PCP and 28% QoQ. The average price received was US$3,797/tonne on an FOB basis up 22% QoQ but down 29% PCP5 due to weaker pricing relative to a year ago. Some sales reflect contracts that were agreed in August, September and October reflecting lower prices that were current at the time. Contracts from later in the December quarter and into 2021 are being completed at higher prices. Total sales revenue was up 57% QoQ to US$16.5 million but down 6% PCP. Lithium prices and volumes continue to recover and realised H2 FY21 prices are expected to be up >50% to approximately US$5,500/tonne (FOB). PPES MOU During the September quarter Orocobre entered into a non-binding MOU with PPES, a joint venture between Toyota (51%) and Panasonic (49%) specialising in the production of automotive battery cells, for the long-term supply of product culminating in 30kt of LCE in CY25. Discussions are continuing to finalise this agreement. COSTS/MARGINS Cash cost of goods sold for the quarter (including COVID-19 related costs and US$360,000 of COVID-19 wage subsidies from the Argentina government) reduced by 15% PCP to near all-time lows at US$3,623/tonne. This excludes export duties for the quarter of US$85/tonne. Gross cash margins for the quarter returned to being positive at US$174/tonne, this is expected to improve with better pricing in H2 FY21. MetricDecquarter 2020Septquarter 2020Change QoQ (%)PCP(Dec qtr 2019)Change PCP (%)Production (tonnes)3727235258%3,5864%Sales (tonnes)4345339328%3,28732%Average price received (US$/tonne) 33797310222%5,335-29%Cost of sales (US$/tonne)436233974-9%4,266-15%Revenue (US$M)16.51157%18-6%Gross cash margin (US$/tonne)174-872120%1,069-84%Gross cash margin (%)5%-28%116%20%-77%Export tax (US$/tonne)857021%238-64% Total cost of sales has continued to decrease and is materially lower than the previous corresponding period demonstrating the significant focus and reduction of fixed costs within the operating business. STAGE 2 EXPANSION AT OLAROZ PROGRESS TO DATE Work during the December quarter has continued with a reduced workforce adhering to COVID-19 restrictions. As at 31 December, 2020 construction work has achieved approximately 50% completion. Key areas of development are brine extraction wells and gathering systems, lime plant, collection ponds and carbonation/soda ash plants. Capital expenditure to the end of the quarter is approximately US$172 million, excluding VAT and working capital. All of the steel structure for the carbonation and soda ash plants has now arrived at site including cladding, roofing and overhead cranes. The construction contract for the carbonation plant has been awarded and works are expected to commence in mid-February once the remaining terms of the contract are finalised. Expansion of the construction camp is well underway which will allow the workforce to grow as required by the current schedule. Original plans for expansion workforce accommodation envisaged two or more people per room, however with social distancing requirements limiting accommodation to one person per room additional rooms are now being installed. Following a further review and planning around COVID-19 restrictions, Stage 2 is expected to commence production in H2 CY22 and ramp up over two years to full capacity of 25ktpa of primary grade lithium carbonate by H2 CY24. NARAHA LITHIUM HYDROXIDE PLANT PROGRESS TO DATE The Naraha Plant, the first of its kind to be built in Japan, is designed to convert primary grade lithium carbonate feedstock into purified battery grade lithium hydroxide. Feedstock for the 10,000 tonne per annum (tpa) Naraha Plant will be sourced from the Olaroz Lithium Facility’s Stage 2 Expansion that will produce primary grade (>99.0% Li2CO3) lithium carbonate. Since construction commenced at the Naraha Plant there have been no LTIs recorded. As at 31 December, approximately US$50 million has been spent on engineering, civil works, electrical, instrumentation, fabrication and procurement at the Naraha Plant. Site operations have continued throughout the period with construction now approximately 89% complete, and commissioning expected in H2 CY21. FURTHER GROWTH PROJECTS Upon completion of PPES and other customer agreements in the next several months, both Olaroz Stage 2 and Naraha Stage 1 are expected to be fully contracted. In order to maintain the targeted 5-10% global market share beyond 2025, Orocobre is investigating additional production of both lithium carbonate and lithium hydroxide. Olaroz Stage 3 A scoping study into a further expansion at Olaroz (Stage 3) will commence during the March quarter. The study will investigate options for additional 25-50ktpa of lithium carbonate production. The study will consider technical, financial and commercial options for further production including from the 100% Orocobre owned Cauchari resource. Stage 3 at Olaroz will be a high value growth option that will benefit from capital and operating cost synergies with Stages 1 and 2. As a brownfield development it will have low technology and resource risk with a well understood processing route for the Olaroz/Cauchari brine. Access to key existing infrastructure such as the national highway, a dedicated gas pipeline and renewable energy will underpin financial and sustainability metrics and returns. Stage 3 is a unique growth option that will be well timed to meet growing demand for lithium based batteries. Naraha 2 Initial discussions with TTC have confirmed the intention to expand lithium hydroxide production. The next step will be to consider the potential scale of additional production and whether that is located at Naraha or another site that better suits customer needs, or provides scope for potential further stages as may be required to match growth by PPES and other customers. SHARED VALUE PROGRAM AND COMMUNITY The Shared Value team built on their knowledge of local communities and sustainability with a combination of remote work and a number of visits to communities that are directly and indirectly influenced by the company’s operations. Key actions during the quarter included: Community Relations Management of work rosters within COVID-19 limitations: Communication with Community Coordinators, local government contacts and local suppliers to manage and confirm the date and location of PCR sample collection (COVID-19 tests) and the transfer schedules for rostered employeesIdentification of risks and opportunities for the social development of communities within the COVID-19 environment. COVID-19 has presented new challenges for the optimal management of interaction and implementation of programs within local communitiesOngoing management of community relations and engagement with community members and leaders responding to any concerns and facilitating cooperationField work: visits were made to the communities of Susques, Huancar, Pastos Chicos, Coranzuli and Olaroz ChicoThe team participated in the first meeting for 2020 of the Council on Indigenous Participation. This Council brings together the ten communities of the People of Atacama. Discussions focused on local labour, prioritization of local suppliers at the Olaroz Lithium Facility and participation of local suppliers in the Olaroz Stage 2 Expansion Community development programs Program to Support Food Independence: Family Food Production Units UPAFA program to encourage independent food supply in local communities continued during the quarter. Support visits to four vegetable gardens in Coranzuli were conducted with a focus on production records, transplanting of seedlings and optimisation of irrigation. Materials for greenhouse enclosures, hand tools and spring/summer seeds were delivered to the communities of Huancar and Pastos Chicos. A training session on UPAF was held in Olaroz Chico. Sustainable Management of Vicuñas at Olaroz ChicoParticipants in the Vicuna management program at Olaroz Chico were supported in the development of a conservation and management plan. Family Farming program technicians from the National Institute of Technology (Jujuy) were provided training in the natural and cultural heritage of local communities. Community Investment Program Construction of community halls in Susques and El Toro were completed during the quarter. Planning and design is underway for a further community hall in Coranzuli with construction to commence in the first quarter of 2021. MARKET The lithium market continued on a path of recovery during the December quarter, confirming a bottom had been reached in the preceding months. The Chinese lithium carbonate market demonstrated particular strength with spot prices rising ~50% between September 2020 and December 2020 as domestic supply became increasingly tight as demand from the electric vehicle (EV) sector accelerated. DEMAND Underlying fundamentals for electric vehicles continue to improve with an increasing number of commitments to EVs by national governments such as those announced by the United Kingdom in late 2020 which will ban petrol and diesel vehicle sales by 2030. The success of government mandated EV initiatives can be seen in the Norwegian market with EVs accounting for ~80% of new car sales in October 2020. All new car sales in Norway are expected to be EVs by 2025. There are multiple other growth catalysts that are driving lithium demand including a change of government in the US and proposed US$2 trillion renewables stimulus, European carbon emissions penalties on automakers, and the growing range and affordability of popular EV brands in China. Chinese EV demand continued to outperform expectations with the leading industry body, the Chinese Association of Automobile Manufacturers (CAAM) revising the 2020 New Energy Vehicle (NEV) forecast from 1.1 million units mid-year to 1.3 million units outperforming 2018 and 2019 levels. December 2020 marked the sixth consecutive month of growth in NEV sales in China, with a high proportion of pure battery electric vehicles (BEV’s) at 70-80% versus plug-in hybrid (PHEV) resulting in higher lithium consumption with the larger battery size of a BEV relative to a PHEV. China’s demand for lithium carbonate remained higher than the rest-of-world due to a resurgence of LFP battery formats and continued use of mid nickel NMC cathodes by Chinese battery makers producing adequate range for the majority of China’s EV buyers. SUPPLY As Chinese brine producing regions became prohibitively cold, production declined and inventories were quickly reduced, limiting availability of industrial carbonate to upgrading converters as well as cathode manufacturers who seek to maximise the use of lower cost material. This supply dynamic throughout the quarter decreased the premium, battery grade carbonate typically achieves over industrial carbonate. Supply discipline by spodumene producers and earlier mine closures meant converter stock levels also declined. As a result, China’s demand for South American lithium chemical supply grew over the quarter absorbing increased supply from Chile which had previously played a large part in driving Chinese prices down. Continued tightening in the lithium market is expected during the March quarter as Chinese brine remains restricted by weather conditions and Chinese spodumene converter output is bound by feedstock availability. Rest of world supply increases will also be limited given most South American producers have delayed 2021 expansion plans to 2022 and greenfield projects have been pushed back by lack of funding and/or high cost of capital. BORAX ARGENTINA S.A. SAFETY Following a number of safety incidents earlier in the year, Borax has improved safety performance and the team have worked hard to restore the safety commitment and accountability at all levels of the operating business. A safety stand down was implemented at Campo Quijano which allowed the operating team to participate in an extensive safety workshop, which included a review of all critical activities. Additionally, a new Safety Manager and three new experienced supervisors were recruited. Subsequent to the safety stand down, there have not been any LTI or Environmental incidents at the three operational Borax sites during the December quarter. As at 31 December, Sijes recorded 184 days free of accidents, Tincalayu achieved 168 days and Campo Quijano has had 127 days LTI free. This quarter Borax was successfully recertified for ISO 9001 and 14001. A partnership was established with “Saltaplast” to implement circular economy initiatives with an initial focus on waste recycling. Safety initiatives for the second half of the year will include the development of a local emergency response team, improvement of the work permit safety system and planning\implementation of the February and March maintenance programs. PRODUCTION, SALES AND OPERATIONAL UPDATE The December quarter achieved sales of 10,573 tonnes, up 18% QoQ and approximately 23% up from the previous corresponding period. Total sales revenue was up 14% QoQ, while the average price received was down 3% QoQ due to the sales mix. Operations have continued under the Orocobre Bio-security Protocol and to date no cases of COVID-19 have been recorded at any Borax site. COMBINED PRODUCT SALES VOLUME BY QUARTER Previous Year Quarters Recent Quarters March 201913,0416 March 202010,690June 201911,758 June 202012,278September 201912,480 September 20208,964December 20198,614 December 202010,573 CORPORATE AND ADMINISTRATION FINANCE CASH BALANCE As at 31 December 2020, Orocobre corporate had available cash of ~US$246.8 million of which US$11.1 million and US$59.6 million have been set aside as pre-completion guarantees for the Naraha debt facility and Olaroz Expansion debt facility respectively. The US$21.5 million corporate cash increase from the previous quarter includes inflows of US$30.3 million from the Share Purchase Plan, US$2.4 million from proceeds of a mining property usufruct sale, and US$0.4 million of interest income partially offset by US$11.6 million of outflows. The outflows of cash were US$9.4 million advanced to SDJ Joint Venture (SDJ) as a shareholder loan to fund the cash shortfall of the business, US$1.4 million corporate costs and US$0.8 million to Borax. Including SDJ and Borax cash and project debt, net group cash at 31 December 2020 was US$119.8 million, up from US$102.6 million at 30 September 2020. ARGENTINA ECONOMIC CONDITIONS Currency: The official foreign exchange rate depreciated by 10.5% in the December quarter from AR$76.18 at 30 September 2020, to AR$84.15 at 31 December 2020. The accumulated 12-month period from 1 January 2020 to 31 December 2020 resulted in a 41% devaluation of the AR$ against the US$. Inflation: December’s inflation was 4% and accumulated 11.4% in the quarter. The accumulated 12-month period from 1 January to 31 December 2020 resulted in inflation of approximately 36%. Export duties: On 30 December 2020, the Argentine government passed a decree updating the levy on export duties to a fixed percentage of 4.5% which compares to the previous levy of ARS$3 per US$1 of export sales. The average export duty rate applicable to FY20 was 5%, however for the six- month period 1 July to 31 December 2020 it was 3.9% under the ARS$3 per US$1 levy calculation. Authorised by: Rick AnthonJoint Company Secretary FOR FURTHER INFORMATION PLEASE CONTACT: Andrew BarberChief Investor Relations OfficerOrocobre Limited P: +61 7 3720 9088M: +61 418 783 701 E: abarber@orocobre.comW: www.orocobre.comClick here to subscribe to the Orocobre e-Newsletter ______________________________________ 1 All figures presented in this report are unaudited2 All figures 100% Olaroz Project basis3 Orocobre report price as “FOB” (Free On Board) which excludes insurance and freight charges included in “CIF” (Cost, Insurance, Freight) pricing.Therefore, the Company’s reported prices are net of freight (shipping), insurance and sales commission. FOB prices are reported by the Company to provide clarity on the sales revenue that is recognized by SDJ, the joint venture company in Argentina4 Excludes royalties, export tax and corporate costs 5 December quarter 2019 Cost of Sales and Average Price Received have been updated to reflect adjustments made in FY20 Half Year results6 Includes 2,312 tonnes of low value mineral product
26 Jan, 2021
MONTREAL and QUEBEC CITY, Jan. 26, 2021 /CNW Telbec/ - Lion Electric (Lion), a leading manufacturer of all-electric medium and heavy-duty urban vehicles, announced today a new chapter in its collaboration with FLO  and its parent company AddEnergie, with the signing of a reseller agreement.
20 Jan, 2021
BRISBANE, Australia, Jan. 20, 2021 (GLOBE NEWSWIRE) -- Orocobre Limited (ASX: ORE, TSX: ORL) (“Orocobre” or “the Company”) will release the December 2020 Quarterly Production Report on Wednesday 27 January 2021. Managing Director and CEO, Mr. Martín Pérez de Solay will conduct a webcast briefing at 10.30am AEST (Brisbane time), 11.30am AEDT (Sydney/Melbourne time). The webcast briefing will be available via Orocobre’s website www.orocobre.com. Written questions may be submitted via the webcast. An archive copy of the briefing and Q&A session will subsequently be made available on the Company website. Authorised by: Neil KaplanJoint Company Secretary For more information please contact: Andrew BarberChief Investor Relations OfficerOrocobre LimitedP: +617 3720 9088M: +61 418 783 701E: abarber@orocobre.comW: www.orocobre.com Twitter: https://twitter.com/OrocobreLimitedLinkedIn: https://www.linkedin.com/company/orocobre-limitedFacebook: https://www.facebook.com/OrocobreLimited/Instagram: https://www.instagram.com/orocobre/YouTube: https://www.youtube.com/OrocobreLimited Click here to subscribe to the Orocobre e-Newsletter
08 Jan, 2021
Those following along with Orocobre Limited ( ASX:ORE ) will no doubt be intrigued by the recent purchase of shares by...
15 Dec, 2020
Global leaders commit more than US$3 billion to address hunger and nutrition crisis OTTAWA, Ontario, Dec. 15, 2020 /CNW/ -- The Governments of Canada and Bangladesh, in partnership with the Government of Japan, on Monday hosted a virtual launch of the Nutrition for Growth Year of Action, setting in motion a year-long effort to address a global hunger and nutrition crisis that has been exacerbated by the COVID-19 pandemic.
13 Nov, 2020
BRISBANE, Australia, Nov. 13, 2020 (GLOBE NEWSWIRE) -- Orocobre Limited (ASX: ORE, TSX: ORL) (“Orocobre” or “the Company”) wishes to announce that all resolutions were passed as ordinary resolutions following a poll at the Annual General Meeting held this morning, 13 November 2020. Details of the votes cast are provided on the following page.This announcement has been authorised by:Rick Anthon Joint Company SecretaryFor more information please contact:Andrew Barber Investor Relations Manager Orocobre Limited T: +61 7 3871 3985 M: +61 418 783 701 E: abarber@orocobre.com W: www.orocobre.comTwitter: https://twitter.com/OrocobreLimited LinkedIn: https://www.linkedin.com/company/orocobre-limited Facebook: https://www.facebook.com/OrocobreLimited/ Instagram: https://www.instagram.com/orocobre/ YouTube: https://www.youtube.com/OrocobreLimitedClick here to subscribe to the Orocobre e-NewsletterOrocobre Limited 2020 Annual General Meeting Friday, 13 November 2020 Results of MeetingThe following information is provided in accordance with section 251AA(2) of the Corporations Act 2001 (Cth) and ASX Listing Rule 3.13.2.Resolution details Instructions given to validly appointed proxies (as at proxy close) Number of votes cast on the poll (where applicable) Resolution Result ResolutionResolution Type ForAgainstProxy's DiscretionAbstain ForAgainstAbstain* Carried / Not Carried 3A Re-election of Director - Robert HubbardOrdinary 160,633,7717,916,416248,6291,238,439  168,920,3187,914,8411,238,439  Carried  95.16%4.69%0.15% 95.52%4.48%  3B Re-election of Director - Masaharu KatayamaOrdinary 167,892,890744,841264,4171,135,107  173,508,8323,429,6591,135,107  Carried  99.40%0.44%0.16% 98.06%1.94%  4A Grant of STI Performance Right Shares to CEOOrdinary 164,826,7241,551,987253,7323,404,812  173,116,7991,551,9873,404,812  Carried  98.91%0.93%0.16% 99.11%0.89%  4B Grant of LTI Performance Rights to the CEOOrdinary 167,228,7691,457,609236,3971,114,480  175,501,5091,457,6091,114,480  Carried  99.00%0.86%0.14% 99.18%0.82%  5A Ratify issue of shares issued on 17 April 2020Ordinary 167,407,016453,439254,6901,922,110  175,662,177451,8641,954,014  Carried  99.57%0.27%0.16% 99.74%0.26%  5B Ratify issue of shares issued on 3 September 2020Ordinary 85,090,79351,490,697239,397285,722  93,330,41151,489,372317,626  Carried  62.19%37.63%0.18% 64.45%35.55%  6 Remuneration ReportOrdinary 125,417,98040,339,185256,9493,504,033  133,673,82540,339,1853,535,937  Carried  75.54%24.30%0.16% 76.82%23.18%  * Votes cast by a person who abstains on an item are not counted in calculating the required majority on a poll.
BRISBANE, Australia, Nov. 13, 2020 (GLOBE NEWSWIRE) -- Orocobre Limited (ASX: ORE, TSX: ORL) (“Orocobre” or “the Company”) wishes to advise that Mr. Federico (Freddy) Nicholson will retire from the Board effective 30 November 2020. Orocobre Chairman Robert Hubbard stated that his board colleagues and the management of Orocobre are immensely appreciative of everything Freddy has brought to the Company, “Freddy has been a wise counsel for the Orocobre Board and management team since joining us back in September 2010. Freddy has brought great insight into how to build a successful business in Argentina and Jujuy in particular.“In the ten years Freddy has served on the Orocobre Board he has been a member of the People and Governance Committee, Sustainability Committee and the Related Party Committee. Freddy is a highly respected business man whose local experience has been invaluable in ensuring all our stakeholders, shareholders, communities and employees are considered and involved. His role as the Argentina President of the World Business Council for Sustainable Development is testimony to his commitment in this area,” Mr. Hubbard commented.Freddy Nicholson said, “Looking back, I am very proud of the Company that I have helped create. Despite all the difficulties inherent to the location and the need to develop our own technology, today we have a very solid company which has a respected approach to sustainability, competitive operating performance and a great future. My pride grows because the Olaroz Lithium Facility was able to bring progress and well-being to so many of the isolated communities in the north of our country.”This announcement has been approved by:Rob Hubbard ChairmanFor more information please contact:Andrew Barber Chief Investor Relations Officer Orocobre Limited T: +61 7 3720 9088 M: +61 418 783 701 E: abarber@orocobre.com W: www.orocobre.comTwitter: https://twitter.com/OrocobreLimited LinkedIn: https://www.linkedin.com/company/orocobre-limited Facebook: https://www.facebook.com/OrocobreLimited/ Instagram: https://www.instagram.com/orocobre/ YouTube: https://www.youtube.com/OrocobreLimited
BRISBANE, Australia, Nov. 13, 2020 (GLOBE NEWSWIRE) -- Orocobre Limited (ASX: ORE, TSX: ORL) (“Orocobre” or “the Company”) wishes to provide the Chairman and MD/CEO presentation transcripts for the FY20 Annual General Meeting. Chairman ScriptBefore commencing our meeting today, I would like to take this opportunity to acknowledge the Traditional Owners of the many lands on which are all meeting. In Brisbane we are meeting on the lands of the Turrbal and Yugara people. I recognise their continuing connection to land, water and community, and I pay my respects to their elders, past, present and emerging.I will now make a short address to the meeting which will be followed by a presentation by our CEO and Managing Director, Martín Pérez de Solay. There will then be an opportunity for shareholders to ask questions on any aspect of the Orocobre business, however we will look to answer questions specific to any item of business when that is presented to the meeting.COVID-19The health and economic impacts of COVID-19 in Argentina have been significantly different to Australia. Argentina continues to endure high COVID-19 infection rates and material economic challenges constraining the governments capacity to respond to the health challenges and provide fiscal stimulus and support to business. Reported COVID-19 cases now exceed 1.2 million or 2.5% of the population. The economy is experiencing negative GDP, growing unemployment and surging inflation prompted by the 66% devaluation of the Peso during FY20 which has continued into FY21.In this environment Orocobre has needed to be agile, developing its own bio security protocols and COVID-19 testing capacity. Maintaining our operations by preserving the health and confidence of our communities and people is essential to reducing the economic impact of COVID-19. To date we have been successful in this aim and Martin will talk more about this.SafetyOur safety performance has continued to improve. The Group LTIFR for FY20 reduced to 2.5 from 3.0 in FY19 while Olaroz experienced a lost time injury (LTI) free period of 160 days during the year. At Borax, Tincalayu achieved 813 days without an LTI and Campo Quijano achieved 456 days, however Campo Quijano incurred an LTI post year end which together with a deteriorating safety performance at Borax prompted both a temporarily cessation of operations and a management restructure to demonstrate safety really does come first at Orocobre. Review of PerformanceOur financial performance reflected the difficult lithium market conditions with persistent oversupply and weak prices. In the second half of FY20, COVID-19 made the situation worse with lithium supply remaining resilient while battery and electric vehicle manufacturing was reduced. In response to these external factors we reduced our production rates and brought forward planned maintenance activities.The weak lithium pricing environment saw revenue declining year on year by US$67.5 million to US$77.1 million and a net loss of US$67.1 million being reported after impairment and foreign currency losses of US$44.8 million, compared to a profit in the previous year of US$65.4 million.Advances in productivity at Olaroz have been overshadowed by COVID-19. There is no doubt in my mind that at February we were on track to achieve a record year for production. However, despite falling production in the final months we have achieved improved operating metrics such as brine feed grade, recoveries and reagent usage. A strong focus on fixed costs, minimising the use of contractors and eliminating non-essential spend contributed to a 22% reduction in unit cost of sales from Q1 FY20 to Q4 FY20.Quality improvements are being reflected in better process reliability, the introduction of the world recognised Toyota Production System concepts, reduced unplanned maintenance events, increasing proportion of purified production and growing confidence amongst our customer base. These improvements in quality resulted in all customer product deliveries in FY20 being within required specifications.Growth OpportunitiesWe remain confident that the continued electrification of transport will underpin the Olaroz Stage 2 expansion and the Naraha Lithium Hydroxide Project. These growth initiatives were endorsed by the signing of the MOU with PPES, the Toyota Panasonic battery manufacturing joint venture, in August. The Olaroz expansion slowed due to COVID-19 restrictions and regrettably this will mean a delay and an unavoidable 10% increase in the previous estimate of the capital cost.Growth has also been achieved with the acquisition of Advantage Lithium during the year which effectively doubled our JORC resource base. The Cauchari resource sits adjacent to the southern boundary of Olaroz and provides options for both future development beyond the current Stage 2 expansion and more effective basin management.SustainabilityEnvironmental, Social and Governance (ESG) matters have moved from the niche to the mainstream over recent years and this year we published our third Sustainability Report. We are now well placed to further build on the safety targets with other key ESG targets and goals drawn from our Sustainability Report into our ever-evolving governance and remuneration practices for FY21.RemunerationThe Board continues to be committed to a remuneration philosophy, policies and practices that are fair, competitive, effective and responsible and to their transparent and clear communication. We also believe in the need to design bespoke remuneration structures for Orocobre aligned with Argentine market practices that are motivational to management, ensuring retention of talent and alignment to investor objectives. The skills we require for our success are rare and retention of Martin and his management team is a key focus of your board.In FY20, the People and Governance Committee devoted considerable time to the appropriate level of Short Term Incentive or STI awards. The Board considered that target KPIs had been substantially met as significant progress has been made in our focus areas of Safety, Quality, Productivity and Growth.The Board then considered fully the disappointing post COVID-19 earnings outcome and share price performance before making these awards. Consequently, STI awards due and payable post COVID-19 have been reduced by 20% from target achievement and this year will be paid in performance rights vesting on 1 July 2021. In this way we have endeavoured to balance the goals of shareholder alignment with our desire to retain this highly motivated management team over the next crucial few years, when the continued improvements in operating performance and the successful completion of our growth projects remain our primary goals and the most effective method of growing shareholder value.Board Diversity and RenewalLast year I outlined a policy of Board diversity that would set a target of 30% female composition or two female directors. While COVID-19 has slowed the process of appointing a new female Director during FY20, I am pleased to report that Patricia Martinez has been appointed to the Board and will commence her duties on 1 December.GovernanceDuring the year we have moved to strengthen our governance practices by restructuring the Remuneration Committee into the People and Governance Committee and the establishment of the Sustainability Committee which will ensure that these important areas of our business receive an appropriate level of involvement by both the Board and management team.Additionally, we have undertaken a full review of Company policies, and Board and Committee charters and work plans to ensure they meet the needs of Orocobre into the future.ClosingI would like to acknowledge our employees, management team and Board colleagues as this has been a year where everyone has gone the extra mile. I would also like to thank the communities with whom we operate every day, our joint venture partner and governments in Argentina who have supported us during these extraordinary times. Finally, I would like to thank our shareholders for their belief in our business.I would now like to invite Martín to make his presentation.MD/CEO ScriptThank you Rob and thanks to our shareholders for joining us today in this virtual format. The fact that we are meeting in this form characterizes the challenges and changes we have navigated as an organisation throughout this turbulent year.In the first half of the year we navigated through a period of low lithium prices by managing the things within our control. The most important of these were costs and efficiency.As I will discuss shortly, we have had significant success in lowering our costs over the last 12 - 15 months. Looking forward we expect to maintain costs at or below the US$4,000 per tonne level.The second half of the year presented a totally new set of challenges with the arrival of COVID-19. We quickly recognized that this could have a material impact on our business and started educating our workforce around symptoms and strategies to minimize the risk of infection.An emergency committee was established to manage our response which started with the preparation and implementation of a detailed bio-security plan. Importantly, this was done in conjunction with local authorities to ensure a consistent approach within our local communities.We continue to actively manage COVID-19 and have been successful in restricting the spread of the disease when it has been identified in our employees. This has allowed us to maintain relatively normal levels of production.We released our full year 2020 results in late August and concurrently undertook a placement to institutional investors.In addition, we subsequently undertook a Share Purchase Plan for existing shareholders. Through both of these measures we raised A$169 million before costs. This will ensure Olaroz Stage 2 is fully funded and Olaroz Stage 1 can continue ramping up through a range of operating, COVID-19 and pricing environments.These funds are also available for future capital growth initiatives as opportunities arise.As at 12 November the share price is approximately 20% above the issue price.At Olaroz we have continued our focus on safety, quality, productivity and growth. Our safety performance has improved year on year and while production was down due to COVID-19 and demand related shutdowns, we saw material improvements in process stability, product quality and consistency.These improvements are reflected in the 22% reduction in costs from the first quarter of the year to the last quarter of the year. Pleasingly, costs subsequent to the end of the year have remained at similarly low levels.The efforts on cost reduction and process stability allowed us to maintain a positive operating margin of 21% despite lower sales prices.As I mentioned, product quality is improving and this is most clearly demonstrated by the brine concentration that is fed into the processing plant from the evaporation ponds. We are seeing year on year improvements in brine concentration throughout the annual evaporation cycle with better management of the pond system and access to additional ponds.We have also managed to achieve very low levels of magnetic particles in our product. Customer requirements continue to become more demanding across many aspects of product specifications. Over the last 12-18 months magnetic particle allowances have reduced by 93% from 1.5 parts per million to 0.1.Improvements in productivity such as reduced unplanned maintenance events, plant yield and lithium recovery are being driven by a focus on our people. We have supplemented the operating team and strived to ensure we have the right people, with the right skills, to deliver improvements into the future.Moving onto the expansion of Olaroz and our recent MOU with PPES.Prior to COVID-19 we had made good progress on the expansion and construction of ponds. Work has by necessity slowed with COVID-19 but we have now completed more than 44% of planned works. The expansion will deliver approximately 25,000 additional tonnes of primary lithium carbonate. This will bring total site production capacity to more than 40,000 tonnes.As we do not have a purification circuit in Stage 2, production costs will be lower than stage 1. We expect total site costs with Stages 1 and 2, to reduce over time towards a range from US$3200 to US$3500 per tonne.Total capital costs are expected to be approximately US$330 million excluding VAT and working capital, however we are now well funded to complete this work. We expect Stage 2 to commence production in the second half of calendar year 2022 and ramp up to full production by the second half of 2025.Nearly half of the production from Stage 2 will be used as feedstock for the Naraha lithium hydroxide plant that we are currently constructing in Japan with our partner Toyota Tsusho Corporation.A memorandum of understanding was signed at the end of August with a joint venture between Toyota and Panasonic called Prime Planet Energy and Solutions. Under this MOU, battery grade lithium hydroxide from Naraha and purified lithium carbonate from Olaroz will be supplied for battery production. We expect that by 2025 PPES will require 30,000 tonnes per year of lithium chemicals. With other existing contracts this will account for 100% of Olaroz production.Clearly, we now see a position where existing production plans for both Olaroz and Naraha will be fully sold and we will now consider how to further increase production of both lithium carbonate and lithium hydroxide to meet strongly growing demand.Moving to the current works at NarahaConstruction at Naraha is progressing well despite COVID-19. Works are more than 80% complete and commissioning is expected to commence in the second half of next calendar year. By the end of September, around US$50 million had been spent out of a total of approximately US$86 million. Importantly, the Japanese government has pledged US$27 million toward construction costs.Naraha is strategically important to Orocobre as the 75% interest in this project provides exposure to the growing lithium hydroxide market and is another link with our long term partner Toyota.Our quarterly reports give a fuller review of the lithium market but I just wanted to touch on our expectations into the future.As you can see from the chart on the left hand side, we expect total annual lithium demand to increase from the current level of approximately 300,000 tonnes to around 800,000 tonnes by 2025. I should point out that these estimates for 2025 demand are not the highest in the market but they still leave questions on how that level of growth and overall demand will be met.Recent low lithium prices have seen some projects, including our own, reduce production and some expansion or growth projects be delayed. However, we are certain they will all be required in the not too distant future. Our real concern is that when known sources of additional supply have been delivered, there could well be a shortage that will take time to correct.Lithium is not like gold or copper, it is very hard to produce a high quality product that is suitable for battery applications. Project after project has demonstrated that it takes time for quality new production to come to the market.The outlook for battery grade lithium chemicals is even tighter. This supports our strategy of investing in additional channels to the high quality battery grade lithium chemicals market.While the timeframes on quality new production are long, the timeframes on increased demand are shortening. COVID-19 has brought forward government regulation and investment in electric vehicles. The value of EV subsidies provided by European governments has increased between 50 and 100% since June this year.In the shorter term, we are now starting to see increased spot prices for lithium chemicals with increasing demand for EVs.Environment, Social and Governance or ESG, practices have always been important to Orocobre.We are currently preparing our fourth Sustainability report. Earlier this year we were recognised for the second year in a row as Leading our sector in sustainability reporting by ACSI – the Australian Council of Superannuation Investors.Increasingly ESG is becoming more important to our customers as auto manufacturers and their customers demand ethically and sustainably produced electric vehicles. Roskill, a leading global commodities researcher has recently published a report confirming that lithium from brine has significantly lower emissions intensity than that produced from hard rock spodumene sources. We expect consumer led preferences for green transport solutions to grow demand for brine based lithium into the future.In summary, Orocobre is an established producer of lithium carbonate and by FY22 will also produce lithium hydroxide.Our operational performance has improved significantly and this is best demonstrated by the 22% reduction in costs from the start to the end of FY20.The strength and capability of our management team is no better exemplified than by our response to COVID-19. Through good management we have been able to continue production while keeping our workforce safe and healthy.Our long term relationship with TTC grows from strength to strength with the recent signing of the MOU with PPES.And most importantly, we are funded to not only deliver our current growth projects but also look to the future for additional opportunities.Thank you, and I will now hand back to Rob.This announcement has been authorised by:Rick Anthon Joint Company SecretaryFor more information please contact:Andrew Barber Chief Investor Relations Officer Orocobre Limited T: +61 7 3720 9088 M: +61 418 783 701 E: abarber@orocobre.com W: www.orocobre.comTwitter: https://twitter.com/OrocobreLimited LinkedIn: https://www.linkedin.com/company/orocobre-limited Facebook: https://www.facebook.com/OrocobreLimited/ Instagram: https://www.instagram.com/orocobre/ YouTube: https://www.youtube.com/OrocobreLimitedClick here to subscribe to the Orocobre e-NewsletterAbout Orocobre Limited Orocobre Limited (Orocobre) is a dynamic global lithium carbonate producer and an established producer of boron. Orocobre is dual listed on the Australia and Toronto Stock Exchanges (ASX: ORE), (TSX: ORL). Orocobre’s interests include its Olaroz Lithium Facility in Northern Argentina, a material JORC Resource in the adjacent Cauchari Basin and Borax Argentina, an established boron minerals and refined chemicals producer. The Company has commenced an expansion at Olaroz and construction of the Naraha Lithium Hydroxide Plant in Japan. For further information, please visit www.orocobre.com.
02 Nov, 2020
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