Orocobre Ltd. Milton Qld OROCF

RE:what are diaster Q Results!

[tiger6301]

I understand the Spot Lithium Carbonate is about $5000-6000/tonne in China, the lowest price, how could you sell your product at $3102/tonne, unbelievable, what a shi--t management!

tiger

tiger6301 wrote:

PRODUCTION

Production for the September quarter was 2,352 tonnes down from 2,511 tonnes in the PCP due to COVID-19 related operational restrictions, scheduled maintenance and the scaling of production. Brine concentration remains at higher levels than in recent years allowing for high daily production rates, higher plant recovery and maintenance of lower costs, even when COVID-19 related costs are included.

SALES AND COMMERCIAL

Product sales were 3,393 tonnes of lithium carbonate. The average price received was US$3,102/tonne on an FOB basis and total sales revenue was US$10.5 million. The average price received during the quarter was down 21% QoQ due to a strategic marketing decision to reduce excess inventory during July, significant market softness related to COVID-19 and continued aggressive competitor pricing. Lithium pricing appears to have reached a bottom and realised Q2 FY21 prices are expected to be higher than Q1 FY21.
 

COSTS/MARGINS

Cash cost of goods sold for the quarter (including COVID-19 costs) remained near recent lows at US$3,974/tonne and down 21% on PCP. This excludes export duties for the quarter of US$70/tonne. Gross cash margins for the quarter were negative at US$872/tonne, this is expected to improve with better pricing in Q2 FY21.

tiger