(Kitco News) - Orocobre (ASX:ORE, TSX:ORL) todayannounced another record quarter at Mt Cattlin with 67,931 dry metric tonnes(dmt) of spodumene concentrate produced in September quarter, up 7%quarter-on-quarter.
Importantly, the company saidthat product grade of 5.7% Li2O was in line with customer requirements andexcellent operational performance was due to favourable head grade and improvedprocessing rates and recoveries.
At the Olaroz lithiumfacility in Argentina, production for the September quarter was 2,802 tonnes,up 19% from 2,352 tonnes in the previous corresponding period, with 58% ofproduction being battery grade lithium carbonate.
Orocobre noted that 89,640dmt of product was shipped in the quarter with a realised average price ofUS$779/tonne generating revenue of US$69.8 million, and that contractingarrangements are well advanced for further shipments of ~38.5kt in the Decemberquarter and ~25kt in early January 2022 with a target grade of 5.7% Li2O.
Average pricing for theseshipments is approximately US$1,650/tonne CIF for 6% Li2O, almost double thatof the September quarter, the company pointed out.
Orocobre also reported that dueto record production rates achieved, forecast production for CY21 has beenrevised upwards to 210,000 - 220,000 dmt of spodumene concentrate, from theprevious guidance of 195,0000 - 210,000 dmt.
"Demand for lithium chemicalsand spodumene concentrate increased materially during the quarter in all keygeographies responding to sustained high production of lithium-ion batterymaterials and batteries," the company said in its statement.
Consistent with the highdemand trend for lithium chemicals and pricing, spodumene concentrate spot salesduring the September quarter exceeded US$1,000/tonne CIF compared to~US$650/tonne CIF in the preceding quarter, Orocobre added.
Spot prices for the limitedvolumes of spodumene available in the December quarter are estimated to be inthe range of US$1,500/tonne CIF to US$2,500/tonne for SC6% CIF, the companypointed out.
By Vladimir BasovFor Kitco News
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