Suffering Orocobre says lithium prices 'appear' to have bottomed out

SHAREHOLDERS of Orocobre will be very hopeful their company’s assessment of lithium prices being set to improve is accurate given costs remaining well above pricing in the September quarter.
Suffering Orocobre says lithium prices 'appear' to have bottomed out Suffering Orocobre says lithium prices 'appear' to have bottomed out Suffering Orocobre says lithium prices 'appear' to have bottomed out Suffering Orocobre says lithium prices 'appear' to have bottomed out Suffering Orocobre says lithium prices 'appear' to have bottomed out

Pricing has not been pretty of late for Orocobre

Orocobre's 66.5%-owned Olaroz operation in Argentina achieved production and sales of 2352t and 3393t respectively in the September quarter, with the average realised price of US$3103/t (FOB) a long way short of cash costs of just over $4000/t - including an export tax of $70/t.

Orocobre reported a corporate cash balance of $255.6 million early this month following the completion of a placement and share purchase plan that brought in A$169 million.

Orocobre said lithium prices appear to have bottomed and realised prices in the current quarter are expected to be higher than the September period.

Some level of comfort for Orocobre shareholders could be gained from hard rock lithium play Altura Mining having to call in receivers and managers this week, with another spodumene operation in Australia, Bald Hill, hitting the rocks just over 12 months ago.

Shares in Orocobre were down 3% to $2.54 in morning trade, capitalising the company $875 million.

New shares in the recent placement were priced at $2.52.