Talison Lithium Announces Preliminary First Quarter 2012 Sales Volume
PERTH, WESTERN AUSTRALIA -- (Marketwire) -- 10/11/11 -- Talison Lithium Limited (TSX: TLH) ('Talison' or the 'Company') today announced its preliminary sales volume and production results for the three months ended September 30, 2011 ('Q1 FY2012'). The Company also provided an update on its three growth projects encompassing its Australian capacity expansion, lithium minerals conversion plant and Salares 7 brine project.
Preliminary Results
Sales volumes remain capacity constrained
Q1 FY2012 tonnes sold increased 53% compared to Q1 FY2011, to 80,315 tonnes lithium concentrate (or approximately 12,000 tonnes lithium carbonate equivalent ('LCE')). Demand remains strong for all of Talison's technical and chemical-grade lithium concentrates. Sales volume is currently limited by the capacity of the processing plants at the Greenbushes Lithium Operations, and is expected to remain constrained until completion of the expansion of production capacity in Q4 FY2012.
The Company noted that sales are made in large shipments to customers, in varying proportions of technical-grade and chemical-grade lithium concentrates, which may result in variations between production and sales volumes in individual quarters. Q1 FY2012 production was 90,708 tonnes lithium concentrate (approximately 13,500 tonnes LCE), a 12% increase compared to Q1 FY2011. The difference between tonnes produced and tonnes sold in the quarter is due to orders in the process of being fulfilled.
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Three Months Ended Three Months Ended
Volume(i) Sept 30, 2011 Sept 30, 2010 Percentage Change
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Production 90,708 80,729 12%
Sales 80,315 52,525 53%
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(i) Tonnes of lithium concentrate
Peter Oliver, Chief Executive Officer, commented, 'Talison continues to experience strong demand from customers across the world. This demand, together with a recent tightening in global lithium supply is expected to enhance Talison's pricing in the 2012 calendar year.'
Growth Projects
Greenbushes Stage 2 Expansion On Schedule and On Budget
The Stage 2 Expansion at the Greenbushes Lithium Operations continues to proceed on schedule and on budget. The finished product stockpile is now complete, and foundations for the new chemical-grade plant are being constructed.
The Company continues to expect commissioning of the Stage 2 Expansion during Q4 FY2012 and is receiving strong interest from new and existing customers for output from the expansion. Upon completion, the Stage 2 Expansion will double current production capacity to approximately 740,000 tonnes per annum lithium concentrate (approximately 110,000 tonnes per annum LCE).
To view the photo 'Work on the new chemical-grade plant as part of the Stage 2 Expansion at the Greenbushes Lithium Operations' asscociated with this press release, please click on the following link: http://media3.marketwire.com/docs/tlh1011a.jpg
To view the photo 'New finished product stockpile as part of the Stage 2 Expansion at the Greenbushes Lithium Operations' associated with this press release, please click on the following link: http://media3.marketwire.com/docs/tlh1011b.jpg
Proposed Minerals Conversion Plant
Responding to growing global demand for an additional secure supply of lithium carbonate, particularly from electric vehicle battery manufacturers, Talison is aggressively pursuing its proposed plant to convert lithium minerals into lithium carbonate ('Minerals Conversion Plant'). Plant capacity is proposed to be 20,000 tonnes per annum LCE in the first stage, and an additional 20,000 tonnes per annum LCE in the second stage.
A location study for the Minerals Conversion Plant is in progress. Potential locations have been narrowed to the Greenbushes Lithium Operations or one other Western Australian location.
The external engineering consultant is preparing estimates of capital costs and operating costs, which should be completed by the end of this calendar year. Based on initial indications of operating costs, Talison believes that it will be a globally competitive lithium carbonate producer.
Salares 7 Project - Phase 2 Exploration Program
Following the receipt of outstanding results for both lithium and potassium from the initial drilling at the Salares 7 Project in Chile, Talison is accelerating its exploration program and expects to invest approximately US$5 million on the Phase 2 program in FY2012.
A new custom built sonic drill rig with specific capabilities to suit the ground conditions at the Salares 7 Project is being assembled and the camp at the Project has recently reopened following the Chilean winter.
The Phase 2 program includes approximately 5,000 metres of drilling at Salar de la Isla, Salar de Las Parinas, Salar de Aguilar and Salar Grande, with the objective to define a lithium mineral resource estimate at Salar de la Isla.
To view the photo 'Camp reopened at the Salares 7 Project, Chile' associated with this press release, please click on the following link: http://media3.marketwire.com/docs/tlh1011c.jpg
New Offices in Shanghai and Santiago
Talison recently opened an office in Shanghai to support its growing business in China. Talison has been operating successfully in China for over 10 years, and the new office will assist the Company in strengthening relationships with new and existing customers.
Talison is also establishing an office in Santiago to facilitate the development of the Salares 7 Project. This office will support the exploration, environmental and process test work currently being conducted by the Company in Chile.
Financial Results Release November
Talison will release its financial results for Q1 FY2012 in mid-November, 2011.
Peter Oliver, Chief Executive Officer and Managing Director of Talison will host a conference call to discuss the results.
Teleconference and replay call details will be distributed prior to the release of financial results.
About Talison
Talison is a leading global producer of lithium. Talison has been producing lithium concentrate for a global customer network from the Greenbushes Lithium Operations in Western Australia for over 25 years. In addition, Talison explores for lithium at the Salares 7 lithium project made up of seven salars located in Region III, Chile.
Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this press release, including any information as to Talison's mineral reserve and mineral resource estimates, strategy, projects, plans, prospects, future outlook, anticipated events or results or future financial or operating performance, may constitute 'forward-looking information' within the meaning of Canadian securities laws. All statements, other than statements of historical fact, constitute forward-looking information. Forward-looking information can often, but not always, be identified by the use of words such as 'plans', 'expects', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates', 'predicts', 'potential', 'continue' or 'believes', or variations (including negative variations) of such words, or statements that certain actions, events or results 'may', 'could', 'would', 'should', 'might', 'potential to', or 'will' be taken, occur or be achieved or other similar expressions concerning matters that are not historical facts. The purpose of forward-looking information is to provide the reader with information about management's expectations and plans. Readers are cautioned that forward-looking statements are not guarantees of future performance. All forward-looking statements made or incorporated in this press release are qualified by these cautionary statements.
Forward-looking statements are necessarily based on a number of factors, estimates and assumptions that, while considered reasonable by Talison, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Such factors, estimates and assumptions include, but are not limited to: anticipated financial and operating performance of Talison, its subsidiaries and their respective projects; Talison's market position; future prices of lithium or lithium concentrates; estimation of mineral reserves and mineral resources; realization of mineral reserve and mineral resource estimates; timing, amount and costs of estimated future production; grade, quality and content of concentrate produced; sale of production; capital, operating and exploration expenditures; costs and timing of the expansion of the Greenbushes Lithium Operations; exploration and development of the Salares 7 lithium project; costs and timing of future exploration; requirements for additional capital; government regulation of exploration, development and mining operations; environmental risks; reclamation and rehabilitation expenses; title disputes or claims; absence of significant risks relating to Talison's mining operations; the costs of Talison's hedging policy; sales risks related to China; currency; interest rates, and limitations of insurance coverage. While Talison considers these factors, estimates and assumptions to be reasonable based on information currently available to it, they may prove to be incorrect and actual results may vary.
Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Talison and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such risk factors include, amount others, those described in the Audited Annual Report of Talison and the related notes thereto as at June 30, 2011 and for the year ended June 30, 2011and under the heading 'Risk Factors' in the annual information form of Talison for the year ended June 30, 2011 dated September 23, 2011, each of which can be found on Talison's SEDAR profile at www.sedar.com. While Talison considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect and actual results may vary.
Although Talison has attempted to identify statements containing important factors that could cause actual actions, event or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein is made as of the date of this press release based on the opinions and estimates of management on the date statements containing such forward-looking information are made. Except as required by law, Talison disclaims any obligation to update any forward-looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.
Contacts:
Investor Relations:
ICR, LLC
Gary T. Dvorchak, CFA
Senior Vice President
1 (310) 954-1123
Gary.Dvorchak@icrinc.com