Orocobre Limited Reports H1 FY21 Results

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/tonne

A successful cost reduction program has seen quarterly cash cost of sales reduce by 28% since September 2019

Brine concentrations are higher and more stable than previous years delivering higher plant recovery, better quality and more consistent product

Successful capital raise of US$119.4 million, net of fees

Statutory 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 items

Attributable group EBITDAIX1 is negative US$6.3 million, down from positive US$2.2 million, due to weak market prices

Total production of 6,079 tonnes of lithium carbonate, down 9% on pcp due to COVID-19 related operational restrictions and market demand

Olaroz 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 price

Average 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 raise

Contract position has improved significantly

Progress 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 MartA­n PA©rez de Solay said, a??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.a??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.a??Construction of our growth projects is progressing at the Naraha Lithium Hydroxide Plant and the StageA 2 expansion of Olaroz. We are now looking to the future with a study into Stage 3 at Olaroz and additional lithium hydroxide production,a?? he said.
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