The Orocobre Limited (ASX: ORE) share price is in the red today following the lithium miner's trading update to the ASX.
During late afternoon trade, Orocobre shares are sinking 2.07% lower to $6.61. At one point, the company's shares reached as low as $6.48.
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What did Orocobre announce?
Orocobre shares are being sold off today as investors weigh up the company's mixed performance report.
According to its release, Orocobre advised that production for the June 2021 quarter stood at 3,300 tonnes of lithium carbonate. Pleasingly, 66% of the extracted lithium carbonate was converted into battery grade lithium carbonate. This is a significant increase from the 21% achieved in the prior corresponding period (June 2020 quarter).
The company's flagship Olaroz Lithium Facility in Argentina recorded sales of 2,549 tonnes of lithium carbonate. The price paid per tonne for the product averaged at US$8,476. This is the Free on Board (FOB) price which excludes insurance and freight charges.
The lithium prices received jumped 45% when compared to the previous quarter of March 2021. Furthermore, over the last 9 months, lithium prices have surged by 170%.
While the company highlighted the good news, inventory levels during the June quarter amplified due to COVID-19 transport delays. In addition, the requirement to hold safety stock for the Prime Planet Energy and Solutions (PPES) contract in Japan also halted the movement of product.
Orocobre revealed that the full details of its June quarter performance will be released on 22 July.
Orocobre share price review
Over the past year, Orocobre shares have surged by more than 150%, and are close to 50% higher in 2021. The company's share price is near its 52-week high of $7.28 reached in May following Orocobre and Galaxy Resources Limited (ASX: GXY) $4 billion merger proposition.
At the time of writing, Orocobre has a market capitalisation of roughly $2.2 billion, with approximately 344 million shares outstanding.
