Ore fka ORE

[balihi]

Looks good.....Orocobre Limited (TSX:ORL) Quarterly Activities & Cashflow Report - March 2016



Brisbane, Australia (FSCwire) - Orocobre Limited (ASX:ORE) (TSX:ORL) are pleased to provide the Company's quarterly report of activities for the period ended 31 March 2016.

Highlights:

Olaroz Lithium Facility

- Production ramp up continues with production of 2,332 tonnes of lithium carbonate during the quarter versus a target of ~2,400 tonnes (97% achieved). This is an increase of 1,224 tonnes over the previous quarter. Operating cash cost breakeven was achieved, and debottlenecking program completed, in January.

- Commercial dispatches of high purity, "battery grade" product made to first battery market customers in Q1 with additional customers scheduled for delivery in Q2.

- Production forecast for Q2 is approximately 3000 tonnes.

- Q2 lithium carbonate price expected to be over US$7,500/tonne FOB1 with further increases expected as we move further into CY2016. (1Net of agency fees, international freight and insurance)

- Studies for the expansion of Olaroz Stage 2 will commence in Q2 with a scope of 17,500 tpa additional LCE at an estimated CAPEX of ~US$140m.

- Draft report of the first stage of the evaluation of the Bateman Advanced Technologies (BAT) LiSXTM process is expected at the end of April.

- Competitiveness improved by devaluation of the AR$ and removal of export duties on lithium carbonate.

Borax Argentina

- Borax Argentina returned to being operationally EBITDA positive for the quarter.

- Sales volume in the quarter was 8,006 tonnes which is a decrease of 2,072 tonnes on the previous quarter and a decrease of 976 tonnes on the same quarter last year (8,982 tonnes) on a comparable basis excluding sales of low value tincal ore.

- Projects for the installation of the borax pentahydrate plant at Tincalayu and process improvement changes at the boric acid plant near completion.

- Expansion Studies for the increase of production at Tincalayu to commence in Q2 with a scope of 100-120ktpa borax decahydrate equivalent production.

- Focus remains on the product and market diversification strategy and production optimisation projects.

- Competitiveness improved by devaluation of the AR$ and removal of export duties on refined borax products and mineral concentrates.

Corporate

- Argentine Congress approved a deal to settle with hold out bond holders, resolving an issue that has isolated Argentina from international financial markets. US President Barack Obama visited Argentina in March and signed a Trade and Investment Framework Agreement.

To view the complete report, please visit:
http://abnnewswire.net/lnk/1DZ4C37V