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Orocobre sales and production fall

22nd April 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Lithium miner Orocobre has reported a difficult quarter in the three months to March, with production down 11%, to 2 732 t at its Olaroz lithium facility, in Argentina.

Orocobre on Wednesday noted that quarantine restrictions imposed by the Argentine government to combat the spread of Covid-19, along with planned maintenance at the project, had resulted on Olaroz losing 21 days of production during the March quarter.

Production at Olaroz restarted on April 10, following a special declaration by the Argentine government declaring the project as ‘essential’.

Sales volumes for the quarter were down 29% quarter on quarter, from 3 287 t to 2 513 t, while sales revenue was down 32% over the same period, from $17.8-million to $12.1-million.

Orocobre told shareholders that product pricing for the March quarter was also 11% below that achieved in the December quarter, with continuing weak demand and aggressive competitor behaviour.

The miner has withdrawn its full year production guidance for 2020 on the back of the current restrictions, and with the high likelihood of ongoing disruptions of future demand in the global markets.

Orocobre earlier this week completed the acquisition of Advantage Lithium, taking full ownership of the 4.8-million tonnes of measured and indicated resources, and the 1.5-million tonnes of inferred resources at Advantage’s Cauchari development, in Argentina.

Edited by Creamer Media Reporter

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