Q1 FY2012 tonnes sold increased 53%Q1 FY2012 tonnes sold increased 53% compared to Q1 FY2011, to 80,315 tonnes lithium concentrate (or approximately 12,000 tonnes lithium carbonate equivalent ("LCE")). Demand remains strong for all of Talison's technical and chemical-grade lithium concentrates. Sales volume is currently limited by the capacity of the processing plants at the Greenbushes Lithium Operations, and is expected to remain constrained until completion of the expansion of production capacity in Q4 FY2012. The Company noted that sales are made in large shipments to customers, in varying proportions of technical-grade and chemical-grade lithium concentrates, which may result in variations between production and sales volumes in individual quarters. Q1 FY2012 production was 90,708 tonnes lithium concentrate (approximately 13,500 tonnes LCE), a 12% increase compared to Q1 FY2011. The difference between tonnes produced and tonnes sold in the quarter is due to orders in the process of being fulfilled.
Three Months Ended Three Months Ended Volume(i) Sept 30, 2011 Sept 30, 2010 Percentage Change------------- -------------------- -------------------- --------------------Production 90,708 80,729 12%Sales 80,315 52,525 53%----------------------------------------------------------------------------(i) Tonnes of lithium concentrate
Peter Oliver, Chief Executive Officer, commented, "Talison continues to experience strong demand from customers across the world. This demand, together with a recent tightening in global lithium supply is expected to enhance Talison's pricing in the 2012 calendar year."
Greenbushes Stage 2 Expansion On Schedule and On Budget
The Stage 2 Expansion at the Greenbushes Lithium Operations continues to proceed on schedule and on budget. The finished product stockpile is now complete, and foundations for the new chemical-grade plant are being constructed. The Company continues to expect commissioning of the Stage 2 Expansion during Q4 FY2012 and is receiving strong interest from new and existing customers for output from the expansion. Upon completion, the Stage 2 Expansion will double current production capacity to approximately 740,000 tonnes per annum lithium concentrate (approximately 110,000 tonnes per annum LCE). To view the photo "Work on the new chemical-grade plant as part of the Stage 2 Expansion at the Greenbushes Lithium Operations" asscociated with this press release, please click on the following link: https://media3.marketwire.com/docs/tlh1011a.jpg To view the photo "New finished product stockpile as part of the Stage 2 Expansion at the Greenbushes Lithium Operations" associated with this press release, please click on the following link: https://media3.marketwire.com/docs/tlh1011b.jpg
Proposed Minerals Conversion Plant
Responding to growing global demand for an additional secure supply of lithium carbonate, particularly from electric vehicle battery manufacturers, Talison is aggressively pursuing its proposed plant to convert lithium minerals into lithium carbonate ("Minerals Conversion Plant"). Plant capacity is proposed to be 20,000 tonnes per annum LCE in the first stage, and an additional 20,000 tonnes per annum LCE in the second stage. A location study for the Minerals Conversion Plant is in progress. Potential locations have been narrowed to the Greenbushes Lithium Operations or one other Western Australian location. The external engineering consultant is preparing estimates of capital costs and operating costs, which should be completed by the end of this calendar year. Based on initial indications of operating costs, Talison believes that it will be a globally competitive lithium carbonate producer.
Salares 7 Project - Phase 2 Exploration Program
Following the receipt of outstanding results for both lithium and potassium from the initial drilling at the Salares 7 Project in Chile, Talison is accelerating its exploration program and expects to invest approximately US$5 million on the Phase 2 program in FY2012. A new custom built sonic drill rig with specific capabilities to suit the ground conditions at the Salares 7 Project is being assembled and the camp at the Project has recently reopened following the Chilean winter. The Phase 2 program includes approximately 5,000 metres of drilling at Salar de la Isla, Salar de Las Parinas, Salar de Aguilar and Salar Grande, with the objective to define a lithium mineral resource estimate at Salar de la Isla. To view the photo "Camp reopened at the Salares 7 Project, Chile" associated with this press release, please click on the following link: https://media3.marketwire.com/docs/tlh1011c.jpg
New Offices in Shanghai and Santiago
Talison recently opened an office in Shanghai to support its growing business in China. Talison has been operating successfully in China for over 10 years, and the new office will assist the Company in strengthening relationships with new and existing customers. Talison is also establishing an office in Santiago to facilitate the development of the Salares 7 Project. This office will support the exploration, environmental and process test work currently being conducted by the Company in Chile.
Financial Results Release November
Talison will release its financial results for Q1 FY2012 in mid-November, 2011.
Peter Oliver, Chief Executive Officer and Managing Director of Talison will host a conference call to discuss the results. Teleconference and replay call details will be distributed prior to the release of financial results.