A summary of Australia-based lithium miner Orocobre's production results for the first quarter of 2020, as stated in its production report on Wednesday April 22.
In brief
The company attributed the drop in production to the temporarily halt in operations in response to the
Argentine government's Covid-19 quarantine restrictions and planned maintenance that resulted in 21 days of lost production. Decreasing sales and average price were the result of continuing weak demand and aggressive competitor behavior. Moreover, the spread of Covid-19 caused pressure on supply and demand at the same time. Operations remained cashflow positive with gross cash margins excluding export tax of A$838 ($527) per tonne. Production guidance was withdrawn for financial year 2020 due to ongoing uncertainty surrounding operational performance and uncertain future demand. First quarter key figures
(year-on-year change)
Lithium carbonate production
2,732 tonnes, down 11%
Lithium carbonate sales volume
2,518 tonnes, down 29%
Average price received
$4,810 per tonne, down 49%
Gross cash margin
A$838 per tonne, down 84%