'Lithium prices appear to have bottomed' - Orocobre
(Kitco News) - Argentine lithium giant Orocobre (TSX:ORL) is looking ahead in its September quarterly report released today.
Sales volume for the quarter was up 112% quarter on quarter to 3,393 tonnes, while sales revenue was up 68% QoQ to $10.5 million following the sale of excess inventory. The realized average price achieved was $3,102/tonne on a free on board basis.
Cash cost of sales was successfully maintained near recent lows at US$3,974/tonne.
The EV material sector started the year downbeat. In January, Orocobre was laboring under lithium prices that dropped 24%.
"Lithium prices appear to have bottomed and realized Q2 FY21 prices are expected to be higher than Q1," wrote the company.
During the quarter Orocobre highlighted a non-binding MOU with Prime Planet Energy and Solutions (PPES), a joint venture between Toyota (51%) and Panasonic (49%) specializing in the production of automotive battery cells, for the long-term supply of product culminating in 30kt of lithium carbonate equivalent (LCE) in CY25. Orocobre said discussions are now underway to finalize the detailed terms of the agreement.