PERTH (miningweekly.com) – Lithium miner Orocobre has widened its losses for the first half of the 2021 financial year, compared with the previous corresponding period, as revenues decreased.
The ASX- and TSX-listed company on Friday reported a statutory consolidated group net loss of $29.1-million, down from the loss of $18.9-million reported in the first half of the 2020 financial year.
Revenue for the same period declined from $48.9-million to $35.8-million, as production declined by 9%, to 6 079 t on the back of Covid-19-related operational restrictions and market demand.
Earnings before interest, taxes, depreciation and amortization was reported as a loss of $6.3-million for the interim period, down from the $2.1-million earning in the first half of 2020.
However, the miner on Friday told shareholders that the cost reduction programme implemented at the Olaroz operation, in Argentina, had seen quarterly cash costs of sales reduced by 28% since September 2019, with the company also seeing a rebound in lithium prices during the second half of the 2021 financial year.
“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,” said MD and CEO Martin Perez.
“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.”