Orocobre Limited Stock Market Press Releases and Company Profile

Half Year Results 2017 and Strategic Update

Half Year Accounts Presentation
Half Year Accounts Presentation

Brisbane, Feb 28, 2017 AEST (ABN Newswire) - Orocobre Limited (googlechartASX:ORE) (googlechartTSE:ORL) (googlechartOROCF:OTCMKTS) is pleased to provide the Company's latest presentation on Half Year Results 2017 and Strategic Update.

KEY NUMBERS 1H FY17

- Strong 1H FY17 Production and Financial Performance

- Production of 6,542 tonnes of lithium carbonate, up 309% on prior comparative period (pcp)

- Olaroz sales revenue of US$60.5M on 6,588 tonnes, up US$56.1 M on pcp

- Olaroz operating EBITDAX of US$35.4M

- Olaroz gross cash margin of US$5,660/tonne (62%)

- Improving sales prices

- Olaroz cash flow positive

- Group net profit of US$7.4M, up US$27.8M on pcp

- Orocobre has US$30M cash at bank

GUIDANCE, GROWTH AND MARKETS

FY17 Production Guidance Revised To 12,000 -12,500 Tonnes From 15,000 Tonnes

- Total pond inventory levels appropriate but current inventory profile is restricting production rate at present. Production in 2H FY17 to be approximately 5,500 - 6,000 tonnes to allow desired grade and inventory profile to be achieved

- Significant production increase into 1H FY18. Further guidance to be provided later in this half year

- Operational understanding has taken longer than anticipated but no design impediments to prohibit nameplate being achieved

Simplified Growth Strategy Outlined by JV

- Olaroz expansion to double capacity to 35,000 tpa lithium carbonate production by end CY18

- Revised product mix - 17,500 tpa Battery Grade and 17,500 tpa Industrial Grade of which 9,000 tpa to be used to feed 10,000 tpa Battery Grade lithium hydroxide plant in Japan

- Revised product mix leads to simplified expansion - duplication of bores, ponds and primary circuit

- Fast-track construction of first module of 10,000 tpa lithium hydroxide plant in Japan - fed by Olaroz Industrial product

Strong Lithium Market Fundamentals Persist

- 33 current customers for Olaroz production (Japan, South Korea, Europe, USA and China)

- Strong demand for Industrial (99%) and Battery Grade (>99.5%) products

- Pricing firming to approximately $10,000/T FOB this quarter

- Demand accelerating but significant headwinds for new production. Forecast supply will take longer than analysts' models predict leading to stronger for longer pricing

To view the full presentation, please visit:
http://abnnewswire.net/lnk/22128HGE


About Orocobre Limited

Orocobre Limited (ASX:ORE)Orocobre Limited  is listed on the Australian Securities Exchange and Toronto Stock Exchange  (ASX:ORE) (TSE:ORL) (OTCMKTS:OROCF), and is building a substantial Argentine based industrial chemicals company through its portfolio of lithium, potash and boron assets. In partnership with Toyota Tsusho Corporation (TTC) and JEMSE, Orocobre has built and is now operating the world's first commercial, brine-based lithium operation constructed in approximately 20 years.

In 2018 Orocobre announced the Stage 2 Expansion of its flagship Olaroz Lithium Facility in Argentina. The Stage 2 Expansion will add 25,000 tpa of lithium carbonate production capacity, taking full production and capacity to 42,500 tpa of lithium carbonate for sale to industrial, technical and battery markets, positioning Orocobre as one of the world's largest and lowest cost lithium chemicals producers.

Additionally, Orocobre and Toyota Tsusho Corporation have commenced construction of the 10,000 tpa lithium hydroxide plant in Naraha, Japan. The construction of the Naraha Lithium Hydroxide Plant will further cement Orocobre's position as a global lithium chemicals producer operating at the bottom quartile of the lithium cost curve. This new hydroxide plant will be the first of its kind in Japan and will provide Orocobre product diversification suitable for different battery technologies and the potential for significant margin growth on our primary lithium carbonate being converted to battery grade lithium hydroxide.

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Contact

Richard Seville
Managing Director
T: +61-7-3871-3985
M: +61-419-916-338
E: rseville@orocobre.com

Andrew Barber
Investor Relations Manager
Orocobre Limited
E: abarber@orocobre.com
T: +61-7-3871-3985



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