Home » Posts tagged 'lithium carbonate spot prices'

Tag Archives: lithium carbonate spot prices

IndMin article – Orocobre lithium production down but average lithium carbonate prices up

by Martim Facada, IndMin. First published: Thursday, 05 April 2018 

Link here to read the original article on the IndMin.com website

Adverse weather and lower evaporation rates reduced Orocobre’s lithium compounds output in the first quarter, but it still achieved higher sales prices.

Argentina-based lithium producer Orocobre has announced a 29% fall in its production of lithium carbonate in January-March 2018, with output down to 2,802 tonnes against the 3,937 tonnes produced in the last quarter of 2017.

A 24% decline in brine evaporation rates year-on-year hampered the brine concentration process. This was a result of reduced hours of sunshine, cloudy conditions and rain, which were said to be the main factors behind the lower production.

But although production was reduced, Orocobre achieved higher prices. It sold 3,052 tonnes of lithium carbonate in the first quarter at an average price of $13,533 per tonne fob, up by 17% compared with the preceding quarter.

Total sales revenue achieved in January-March was $41.3 million.

The contract price of lithium carbonate, min 99% (Li2CO3), technical and industrial grades, was last assessed* by Industrial Minerals on March 28 at $16.00-18.50 per kg on a ddp Europe and US basis.

On the same day, the contract price for lithium carbonate, min 99% (Li2CO3), technical and industrial grades, cif China, Japan and South Korea, was assessed at $16-19 per kg on a ddp Europe and US basis.

Because of the first-quarter fall in production, Orocobre expects to produce 10% less lithium carbonate for the full 2018 financial year than was indicated by the previous guidance of 14,000 tonnes. Further details will be provided in the company’s March quarterly report.

Orocobre produced 11,392 tonnes of lithium carbonate from Olaroz throughout the 2017 calendar year, and 11,892 tonnes in the 2017 financial year from June 2016 to June 2017.

“While I recognize that this change in production guidance is very disappointing, the adverse weather conditions were outside our control,” chief executive officer and managing director Richard Seville said.

“However, recent weather events have confirmed the previously identified need to further improve the robustness of operations and reduce production variability from [the effects of] weather,” he added. “Plans for the Phase 2 expansion already include enhancements to the lithium carbonate processing plant and the potential use of evaporator/crystallizers during adverse weather events, to maintain consistent brine concentration prior to processing in both Phase 1 and Phase 2.”


Chinese lithium market remains slow but prices rise globally – IndMin article

Article by Martim Facada, IndMin

Spot prices in the domestic Chinese market for lithium have softened this week due to lower consumption, while prices in the rest of the world have gone up, driven by bullish market sentiment.

Spot prices for lithium fell this week in China because of lower consumption, with most consumers in no hurry to buy material and holding back from further purchasing while prices soften.

“The battery-grade lithium carbonate spot market has been illiquid, and it has been hard to conclude deals at prices higher than 150,000 yuan [$23,896] per tonne this week,” a Chinese lithium carbonate producer told Industrial Minerals.

“Consumers are monitoring the market and are unwilling to place orders, expecting that prices will keep moving downward,” he added.

Lower demand from battery consumers pushed down the market price of battery-grade lithium compounds, compelling producers to lower their prices to secure sales.

The spot price for battery-grade lithium carbonate (min 99.5% Li2CO3) decreased to 146,000-150,000 yuan ($23,208-23,844)* per tonne on Thursday March 29, according to Industrial Minerals’ market assessment. This was down from 150,000-155,000 yuan per tonne in the previous week.

The price of battery-grade lithium hydroxide monohydrate (min 56.5% LiOH.H2O) remained stable week-on-week at 148,000-153,000 yuan per tonne.

Prices of technical and industrial grades of lithium carbonate and lithium hydroxide monohydrate were also unchanged this week amid thin buying activity.

The spot prices for lithium carbonate, technical and industrial grades (min 99% Li2CO3), ex-works domestic China, remained stable at 140,000-145,000 yuan per tonne on March 29, with the the same prices being reported for technical and industrial grades of lithium hydroxide monohydrate (min 56.5% LiOH.H2O).

Seaborne markets

The seaborne China, Japan and South Korea lithium market saw a small price uptick, supported by reported deals and suppliers’ bullish market sentiment.

“We have sold one container of lithium carbonate technical and industrial grade material this week, at close to $20 per kg,” a lithium supplier told Industrial Minerals.

“Our prices remain below the current Chinese domestic spot market prices. But in recent weeks the seaborne market outside China has been close to $20 per kg, and at least $1 per kg higher for lithium carbonate battery-grade material,” he added.

Pushed by market sentiment and confirmed deals, the spot price of lithium carbonate, technical and industrial grade, cif China, Japan and South Korea, moved up slightly to $18-20 per kg on March 29 [LINK], from $17.50-19.50 per kg the week before.

Meanwhile, the price of lithium carbonate, battery grade, cif China, Japan and South Korea, remained unchanged week on week at $19-21 per kg [LINK].

The prices of lithium hydroxide monohydrate, technical and industrial, and battery grades, also showed small week-on-week upticks on March 29, to $20-21 per kg from $19-21 per kg and to $20.10-22.00 per kg from $19-22 per kg, respectively.

Europe, North America

The European and North American lithium spot markets have also shown a price increase over the course of the week, due to bullish sentiment among suppliers.

“It would be exceptional to find lithium carbonate or lithium hydroxide monohydrate [for a price] as low as $17-18 per kg in the European and North American spot markets, due to the current tightness of material,” a second lithium producer told Industrial Minerals.

“The market wouldn’t sell any of our grades of lithium carbonate for less than $19 per kg or our lithium hydroxide for less than $20 per kg,” a second lithium supplier told Industrial Minerals.

Suppliers’ bullish sentiment has pushed up the European and North American spot prices of lithium carbonate, technical and industrial grades, week-on-week to $17-19 per kg on March 29, from $16.50-18.50 per kg.

Meanwhile, spot prices of lithium carbonate, battery grade, moved up to $18-20 per kg on March 29, from $17.50-19.50 per kg.

There was more spot market activity in lithium hydroxide monohydrate, technical and industrial grades, with prices moving up to $19.00-20.50 per kg on March 29 from $18.80-20.50 per kg previously.

“We have been active in negotiations to lock in more sales of lithium hydroxide monohydrate, technical and industrial grade, over the course of this week, but we wouldn’t sell material for less than $19 per kg. Actually, all our sales are [at prices] closer to $20 per kg,” a third lithium supplier told Industrial Minerals.

In addition, the lithium hydroxide monohydrate battery-grade spot market moved upward slightly week-on-week, to $19.10-21.00 per kg on March 29.

Full article here


Cadence Minerals (KDNC) – Strategic Development and Update re Loan Notes

During September 2017, when we announced the profitable sale of part of our stake in Bacanora Minerals Ltd, we also signalled a strategic shift to redeploy some of our balance sheet resources to other early stage mineral exploration assets. 

We are now in the advanced stages of reviewing several early stage lithium assets in well-known lithium jurisdictions where we see the potential to deliver shareholder value by investing in projects that have shorter development timeline to cashflow than a typical lithium carbonate producer. Our intent is to earn in at a project level basis, and we are focused on assets where we can both hold larger stakes and also utilise our considerable mining and financial management expertise to achieve the high level of returns to those made on our portfolio to date.

To support this strategy we have looked to improve our balance sheet flexibility, and therefore the Company has repurchased US$ 6.45 million of the US$12.9 million outstanding secured convertible loan notes, at par value. The restructuring of the remaining US$6.45 million of the Old Convertible Notes is being completed via the issue of two new convertible loan notes, details of which are shown below.

Key Highlights:

  • The debt restructuring, when completed, will provide a simplified balance sheet structure, and halve the interest burden;
  • It will significantly reduce the cost of debt (convertible loan note coupon of 5% versus a combined interest rate of 2.6% over the New Convertible Loan Notes);
  • The strengthened balance sheet will allow us to advance our strategic shift and in particular, provide long-term funding to new investments up to scoping or pre-feasibility study level; and
  • Alongside this, we will be seeking to develop and foster partnerships which would enable us to fund and develop these new projects once a pre-feasibility has been completed.

Kiran Morzaria, Chief Executive Officer of Cadence, commented: “The EV revolution has created an unprecedented demand for lithium compounds, even with current forecast capacity for the production of the raw materials, our analysis shows that this will not meet demand in the short to medium term. Cadence’s core investments have performed well to date. However, your board sees an opportunity to potentially identify and invest in greenfield projects that could supply the market sooner than a typical lithium carbonate producer.”

Detail of Restructuring

Utilising current cash reserves the Company has repurchased US$ 6.45 million of the US$12.9 million Old Convertible Notes, at par value inclusive of the 5% outstanding interest. The outstanding US$6.45 million was restructured via the issue of two New Convertible Notes.

Of the US$ 6.45 million, US$3.9 million was restructured via the issue of the first convertible loan note with the following key terms:

  • Interest will be 0%;
  • The principle repayment will be made in September 2018; and
  • The loan notes are convertible at any time during this period at 0.364 pence (a 12% premium to the closing mid-market price as at 31 October 2017).

The remaining US$2.55 million was restructured via the issue of the second convertible loan note with the following key terms:

  • Interest will be 10%
  • A principle and interest repayment holiday until to January 2018;
  • After which the principle and interest will be paid via equal instalment over nine-month period with the principle being fully repaid by the end of September 2018; and
  • The loan notes are convertible at any time during this period at 0.473 pence (46% premium to the closing mid-market price as at 31 October 2017).

Both notes, as the Old Convertible Notes were, are secured against the Company’s assets.

Live Webinar; Friday 10 November

The Company will be hosting a live webinar at 10.00am GMT on Friday 10 November 2017 to discuss this announcement, performance in 2017 and plans for 2018. The live webinar will be available on the following link: http://webcasting.brrmedia.co.uk/broadcast/59ce049bd349960788385564/59ce5e874a51eb870400002b.

Listeners are encouraged to submit questions prior to the call by emailing cadence@brrmedia.co.uk or by clicking on the question button at the foot of the webcasting.

– Ends –

For further information, please contact.

Cadence Minerals plc

+44 (0) 207 440 0647

Andrew Suckling

Kiran Morzaria

WH Ireland Limited (NOMAD & Broker)

+44 (0) 207 220 1666

James Joyce

James Bavister

Hannam & Partners LLP (Joint Broker)

+44 (0) 207 907 8500

Neil Passmore

Giles Fitzpatrick

Square1 Consulting

+44 (0) 207 929 5599

David Bick

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

About Cadence Minerals:

Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market. With over £25 million vested in key assets globally, Cadence is helping us reach tomorrow, today.

Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.

The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.

Given the advanced nature of the review of the potential new investments and in accordance with the Company’s share dealing code the board is currently prevented from dealing in the Company’s shares. The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

Cadence Minerals (KDNC) – Bacanora Minerals Board Changes and Project Update

Cadence (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that Bacanora Minerals Plc (BCN) has announced changes to its board as well as providing an update on its flagship Sonora Project in Mexico where a Feasibility Study for a 35,000 tonnes per annum lithium carbonate operation is now on course for completion in late 2017. The Company has also recently commenced a FS for the Zinnwald Project located near Dresden, Germany.  

 The full Bacanora release is available at: http://www.investegate.co.uk/bacanora-minerals-ld–bcn-/rns/board-changes-and-operations-update/201705150700100678F/ .

Project Updates

Sonora, Mexico

FS activities continue on the Sonora Project, which is one of the world’s larger lithium resources.  Metallurgical test work continues at the SGS laboratories in Perth and Ausenco Limited is currently completing the flow sheet design and mass balance to finalise operating and capital cost estimates.  IMC Mining Consultants in Tucson has commenced mine planning and equipment selection for the open pit mining operation. Within Sonora, local infrastructure, energy and natural gas supplies and consumable chemicals for the project continue to be a focus as a result of the previously reported increases in costs for natural gas and chemical reagents. The FS report will also include an updated Mineral Resource Estimate and geological model by SRK Consulting (UK) Limited based on the infill drilling programme which was completed in Q3 2016. 

The pricing environment for lithium carbonate has strengthened to close to US$12,000/t from an average of around US$6,000/t in 2015 (source: http://trugroup.com/lithium-market-conference.shtml).   The pricing of lithium carbonate shipments to China and Japan remained strong in January 2017, with reported sales by major producers in the region of $12,000/t and spot sales in Japan and China around $15,000/t (source: (https://seekingalpha.com/article/4040100-lithium-miner-news-month-january-2017).  With this in mind, the Company will update the pricing assumptions in its FS and expects to announce the updated long term pricing forecast for lithium carbonate for the FS prior to the FS being released.

Reflecting its commitment to working with Bacanora to deliver a 35,000 tonne per annum lithium carbonate operation which can supply the fast-growing Asian battery market, cornerstone investor Hanwa continues to facilitate discussions with regards to securing long-term project debt funding to contribute to the construction capex.

Zinnwald, Germany

The Company has commenced the FS at the Zinnwald Lithium Project in Germany, in which it has a 50% interest.  Zinnwald benefits from its proximity to Dresden, a major centre of the German chemical industry. The ability to source downstream chemicals and skilled professional labour is considered a significant advantage in Bacanora’s strategy to develop a downstream, high value lithium product suite. In addition, close proximity to the rapidly growing German automotive and renewable industries provide a very significant potential local market for Zinnwald lithium products.

Baconora’s 50% partner in Zinnwald, SolarWorld AG (‘SolarWorld’), recently announced its intention to file for bankruptcy protection in Germany due to ongoing pricing pressures in its core solar markets.  Under the terms of the agreement signed with SolarWorld in February 2017, Bacanora acquired a 50% interest in, and joint operational control of Zinnwald in exchange for a cash consideration of EUR5 million and an undertaking to spend EUR5 million towards the cost of completing the FS.  The agreement also included an option for Bacanora to acquire the outstanding 50% held by SolarWorld within a 24 month period for EUR30 million.  The Company is confident that the SolarWorld insolvency process will have no material impact on the Company’s interest, nor its agreement with SolarWorld.

As part of the FS, bulk ore sampling work will be carried out during the summer to provide samples for metallurgical testwork for inclusion in the flowsheet.  Additionally, an infill drilling programme is planned for late 2017 to upgrade the existing resource model in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects.  The drilling will test for a number of potential by-products including tin, tungsten and SOP.  The 2014 resource estimate was reported in accordance with the Pan European Code for Reporting of Exploration Results, Mineral Resources and Reserves, and is outlined below:

 Resource Category

Tonnes* (000)

Li Grade (ppm)

Contained LCE** (Tonnes)













 *       Li cut-off 2,500pm and >2 metres vertical thickness.

**     LCE is the industry standard terminology for, and is equivalent to, Li2CO3.  1 ppm Li metal is equivalent to 5.32 ppm LCE / Li2CO3.  Use of LCE is to provide data comparable with industry reports and assumes complete conversion of lithium in clays with no recovery or process losses.

Changes to Board of Directors

The Company announces the appointment of Dr Andres Antonius, who is based in Mexico City, and Mr. Junichi Tomono, head of the Speciality Metals and Alloys department of leading Japan-based global trading company Hanwa Co., LTD. (‘Hanwa’), as Non-executive Directors of the Company.  Such appointments have been approved by the Board of Bacanora and will take full effect upon completion of standard regulatory reviews, which are underway.

The two appointments replace Mr. James Leahy, who has stepped down from the Board to pursue other business interests, and Mr. Kiran Morzaria who resigned from his position as Non-executive Director of the Company earlier this year (see announcement of 26 January 2017 for further details).  Mr. Tomono’s appointment to the Board follows the signing of a strategic partnership and offtake agreement for Sonora which has seen Hanwa acquire an initial 10% interest in Bacanora following a private placement (see announcement of 2 May 2017 for further details).  

Dr. Andres Constantin Antonius Gonzalez (aged 47) is a Mexican national who has held positions in the Government of Mexico as well as in the private sector and academia.  Dr. Antonius previously served as Undersecretary for Energy Policy and prior to that was a staff member at the Agriculture Secretariat.  Dr. Antonius also held the role of coordinator for strategy of then President Elect Peña Nieto’s transition team in 2012.  Dr. Antonius is currently CEO of Plan B, a provider of strategic advice to a range of clients.  Prior to founding Plan B, he was the President of the Consulting Services Group at Kroll, a world leader in risk management, business intelligence, and investigations.  Dr. Antonius has also held the position of Director of Strategic Planning at the Instituto Tecnológico Autónomo de México (‘ITAM’) and has taught economic theory, game theory, and crisis management at both the ITAM and the Universidad Iberoamericana.  He received a B.A., Masters and PhD degree in Economics from Harvard University. As part of his package, Dr. Antonius will be granted 500,000 options to acquire new ordinary shares in the Company at an exercise price of 86.5 pence. Such options vest as to 1/3 on the date of grant and an additional 1/3 on each of the first and second anniversaries of the date of grant and are exercisable for a period of three (3) years. All of these options (and the common shares issuable upon exercise) will be subject to applicable securities law hold periods.

Junichi Tomono (aged 43) has over 22 years’ experience with Hanwa, during which time he has worked in the Metals, Chemicals, Alloys, Scrap metals and Mining divisions.  Mr. Tomono has a special focus on the battery chemicals sector including lithium.  As head of the Speciality Metals and Alloys department and as a Director of three of Hanwa’s subsidiaries, Mr. Tomono has played a key role in Hanwa adopting a more global focus in response to the rapid growth in the lithium battery sector.

The Sonora Lithium Project and Details of Cadence’s ownership:

Cadence owns a direct interest of 17.18% of Bacanora. The Sonora Lithium Project is comprised of the following lithium properties:

– La Ventana, La Ventana 1, and Megalit concessions, which are 100 percent owned by Minera Sonora Borax S.A. de C.V.(“MSB”), a wholly-owned subsidiary of Bacanora; Cadence, through its direct interest of 17.18% of Bacanora, has an indirect interest in these concessions of 17.18%.

– El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 concessions, which are held by Mexilit S.A. de C.V. (“Mexilit”). Cadence has a 43% direct interest in Mexalit through its Joint Venture with Bacanora, and when combined with Cadence’s direct interest of 17.18% in Bacanora, has a total economic interest in Mexalit of 43%.

– The Buenavista, and San Gabriel concessions, which are held by Megalit S.A de C.V (“Megalit”). Cadence has a 30% direct interest in Megalit through its Joint Venture with Bacanora, and when combined with Cadence’s direct interest of 17.18% in Bacanora, has a total economic interest in Megalit of 43%.

Qualified Person:

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance).

For further information please contact

Cadence Minerals plc

+44 (0) 207 440 0647

Andrew Suckling

Kiran Morzaria

WH Ireland Limited (NOMAD & Broker)

+44 (0) 207 220 1666

James Joyce

James Bavister

Square1 Consulting

+44 (0) 207 929 5599

David Bick

Brian Alexander

Lithium market report 10-24 April – IndMin


First published: Monday, 24 April 2017


The lithium market across the three major regional markets – the US, Europe and China – has been relatively stable in April so far, supported by continuous growth in the Chinese battery sector.

The Chinese domestic market – which has higher spot market activity than the other two western regions – continues to report high levels of activity due to demand from the booming domestic battery sector.

Lithium carbonate spot prices (min. 99-99.5% Li2CO3, CIF China) remain between $18-21/kg for lots of 20 tonnes of material while lithium hydroxide (56.5-57.5% LiOH, CIF China) continues to trade at $20.50-24/kg.

In the US and Europe, the market has remained fairly stable in April although it should be noted that lithium carbonate contract prices have moved up slightly on the low end.

Large biannual contracts for lithium carbonate (min. 99-99.5% Li2CO3, del. US and Europe) saw a small increase of $0.50/kg on the low end to $10.50-16/kg from $10-16/kg previously, while large quarterly contracts rose by $1/kg on the low end to $11-18/kg from $10-18 previously.

Persisting higher prices in China, bullish sentiment and tightness of lithium carbonate on the market were the main reasons cited to IM driving the small increase.

Meanwhile, spot sales in the US and Europe are being reported as high as $18/kg for lithium carbonate (min. 99-99.5% Li2CO3, del. US and Europe).

Lithium hydroxide (56.5-57.5% LiOH, del. US and Europe) contract prices remain unchanged at $14-20/kg.

Link to full article at IndMin website here

I would like to receive Brand Communications updates and news...
Free Stock Updates & News
I agree to have my personal information transfered to MailChimp ( more information )
Join over 3.000 visitors who are receiving our newsletter and learn how to optimize your blog for search engines, find free traffic, and monetize your website.
We hate spam. Your email address will not be sold or shared with anyone else.