Orocobre profit on upward trajectory

LITHIUM carbonate producer Orocobre increased its profit for the December half by around US$1 million, up from $7.4 million to $8.2 million on the prior comparative period, and it is tipping dramatic price growth over the back half of the fiscal year.

Orocobre profit on upward trajectory Orocobre profit on upward trajectory Orocobre profit on upward trajectory Orocobre profit on upward trajectory Orocobre profit on upward trajectory

The average price achieved for its product rose from $9186/t to $11,415/t, which given production costs of $4336/t gives the Argentinian lithium brine operation healthy margins of 62%, some of the healthiest in the world, and Orocobre managing director Richard Seville predicts prices will rise a further 25% by July 1 off strong global demand for its products.

Business development manager David Hall said it was too early to make a call in the second half, because the company hadn’t entered into negotiations but it expects to see incremental improvement into the period off good market fundamentals for lithium into the future with tight supply continuing, despite new lithium producers flocking into the market.

In terms of a spot basis pricing in the back half, while it depen...