Orocobre, which holds a 66.5% interest in the Olaroz operation in Argentina, said a 3% drop in the price received in the December quarter (versus the previous quarter), was a result of legacy contracts.

It further said “strong contract pricing has been achieved thus far for both industrial and battery/technical market product to be delivered during 2017”.

Cash operating costs for the December quarter came in at $3530/t, meaning gross margins of $5477/t.

Production saw a 17% increase to 3529t, with the difference between output and sales attributed to a strike at Antofagasta port and delays related to customs clearance over Christmas.

Orocobre’s cash position of $30 million at the end of the quarter was down from $32.2 million at the end of the September period.

Shares in Orocobre were off 5% to $A4.51 in morning trade, capitalising the company at $950 million.

The stock was at just over $3 per share three months ago.