Commodities

Australia's Orocobre to raise $113 mln for Argentine mine development, posts FY loss

Australia's Orocobre Ltd said on Friday it will raise A$156 million ($113.35 million) to fund the progress of its Argentinian lithium project and reported an annual loss.

Aug 28 (Reuters) - Australia's Orocobre Ltd ORE.AX said on Friday it will raise A$156 million ($113.35 million) to fund the progress of its Argentinian lithium project and reported an annual loss.

The lithium miner said it would fund the stage 2 development of its Olaroz mine in the South American country with an equity raising comprising of a A$126 million placement and share purchase plan of up to A$30 million.

Last month, Orocobre said production at the flagship mine fell 27% in the June quarter as it brought forward a planned maintenance due to a spike in COVID-19 cases at nearby operations. (https://reut.rs/2D6bhfL)

Meanwhile, a downturn in prices of the commodity this year, as the electric vehicle industry takes a backseat through the coronavirus pandemic, has roiled the lithium industry.

Orocobre posted an annual adjusted loss of $22 million compared with a profit of $24.8 million a year ago.

The company also said it executed a deal with a joint venture owned by Toyota Motor Corp 7203.T and Panasonic 6752.T to supply battery grade lithium products.

Orocobre said it, along with some of its partners, would supply 30,000 tonnes of lithium carbonate equivalent (LCE) per year by 2025 to automotive battery maker Prime Planet Energy & Solutions Inc.

($1 = 1.3763 Australian dollars)

(Reporting by Yajush Gupta in Bengaluru; Editing by Shailesh Kuber)

((Yajush.Gupta@thomsonreuters.com; +91 88024 43398;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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