- Orocobre Limited (ASX:ORE) released its September 2021 quarterly report on Friday.
- The miner has produced 67,931 dry metric tonnes of spodumene concentrates from the Mt Cattlin mine.
- The lithium producer stated that it was the second record production quarter in a row from Mt Cattlin.
Shares of Australia's brine-based lithium producer Orocobre Limited (ASX:ORE) traded in the green on Friday, after the company released its September 2021 quarter report. In an upbeat announcement, Argentina-focused miner stated that it had recorded a production of 67,931 dry metric tonnes of spodumene concentrates from its Mt Cattlin mine at a unit cash cost of US$351 per tonne.
Furthermore, Orocobre shipped 89,640 dry metric tonnes of spodumene with a realised average price of US$779 per tonne during the quarter, generating a revenue of US$69.8 million.
The lithium producer has announced record production from Mt Cattlin for the second quarter in a row. Based on extraordinary results, the company has increased the 2021 production guidance for Mt Cattlin to be in the range of 210,000-220,000 dmt of spodumene concentrate against the previous guidance range of 195,000-210,000 dmt.
Additionally, ORE has slashed its cash cost forecast from an initial estimate of US$420- US$450 per tonne to US$390-US$420 per tonne
ORE’s merger with Galaxy Resources
ORE & GXY merger | Source: Copyright © 2021 Kalkine Media
ORE took control of Mt Cattlin mine following its merger with Galaxy Resources (ASX:GXY) in August 2020. Additionally, the Olaroz project of Argentina, which was initially hyped as the flagship project of ORE, has produced slightly above 2,800 tonnes of lithium carbonate during the quarter.
Strong financial position
With the merger of ORE and GXY, coupled with strong quarterly results, the company has a strong cash balance of US$423.6 million at the end of September.
Financial result | Source: Copyright © 2021 Kalkine Media
ORE is also engaged in the development of other significant projects, located in various countries including the Naraha Plant in Japan and the Sal De Vida project in Argentina. The company intends to produce lithium hydroxide from Naraha and battery-grade lithium carbonate from the Sal De Vida project.
Additionally, the company is also engaged in the development of Quebec’s James Bay project, an open-pit mining project with a 330,000 tonne-per-annum spodumene operation.
Orocobre closed at AU$9.150 a share on 22 October 2021, ~1.5% higher than the previous close, with a market capitalisation of AU$5.75 billion.