Talison Lithium Limited

Talison Lithium Limited

April 12, 2012 06:00 ET

Talison Lithium Announces Third Quarter 2012 Sales Volume and Price

PERTH, WESTERN AUSTRALIA--(Marketwire - April 12, 2012) - Talison Lithium Limited ("Talison" or the "Company") (TSX:TLH) today announced its preliminary sales volume and production results for the three months ended March 31, 2012 ("Q3 FY2012"). The Company also provided an update on its growth projects.

Peter Oliver, Chief Executive Office and Managing Director, said, "During the quarter Talison achieved another record level of production at Greenbushes. This record was especially pleasing given the extensive construction activity currently underway to expand production capacity. The expansion is nearly complete and, together with the recent price increase, positions Talison strongly for the expected growth in the lithium market."

Preliminary Production and Sales Volume

  • Talison sold 111,896 tonnes lithium concentrate during Q3 FY2012 (or approximately 16,600 tonnes lithium carbonate equivalent ("LCE")), a 15% increase compared to Q3 FY2011.

  • Q3 FY2012 production was a record 93,563 tonnes lithium concentrate (approximately 14,000 tonnes LCE), a 6% increase compared to Q3 FY2011.

  • The average sales price of lithium concentrates sold during Q3 FY2012 was US$340 per tonne, demonstrating the initial impact from the price increase that applied from January 2012.

  • Sales of lithium concentrate materially matched production for the nine months ended March 31, 2012, with 267,432 tonnes of lithium concentrate (approximately 40,000 tonnes LCE) sold and 273,286 tonnes of lithium concentrate (approximately 40,500 tonnes LCE) produced.

2010 Q1 11 Q2 11 Q3 11 Q4 11 2011 Q1 12 Q2 12 Q3 12
Sales Volume* 256,767 52,525 97,559 97,001 92,416 339,501 80,315 75,221 111,896(2)
Production Volume* 262,539 80,729 83,548 88,315 89,505 342,097 90,708 89,015 93,563
Average Sales Price (US$/tonne)* $ 281 $ 313 $ 315 $ 303 $ 302 $ 308 $ 330 $ 310 $ 340
* Tonnes of lithium concentrate
(1) From quarter to quarter sales volume and average sales price may vary as sales are made in large shipments that can be irregular in timing and in varying proportions of technical-grade and chemical-grade lithium concentrate.
(2) This includes the approximately 38,000 tonnes of Talison's lithium concentrate sales that were delayed from December 2011.


Talison expects to sell approximately 350,000 to 360,000 tonnes of lithium concentrate for the full year ending June 30, 2012, in line with earlier expectations.

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 Expansion is now in the final stages of construction and will then move into the commissioning phase. Production will be shut-down for approximately two weeks during May to link the existing production circuits to the new expanded production circuits.

To view the image associated with this press release, "Work on the new chemical-grade plant as part of the Stage 2 Expansion at the Greenbushes Lithium Operations," please visit the following link: http://media3.marketwire.com/docs/TLH1204_figure1.pdf.

Proposed Minerals Conversion Plant

Talison is continuing to advance its plan to add value to the high-quality Greenbushes resource by developing a plant to convert lithium minerals into lithium carbonate.

The engineering study for the lithium carbonate plant has now commenced and Talison is finalising tenure arrangements for its preferred site in the Kwinana Industrial Area, Western Australia. Discussions with potential customers are continuing positively.

The Company anticipates making an investment decision on the project by the end of calendar 2012 and is targeting production of lithium carbonate in 2015.

Greenbushes Resource Development

Talison is undertaking additional resource definition drilling at the Greenbushes Lithium Operations. The objective is to increase lithium mineral reserves and extend mine life to support future additional expansions of the lithium concentrate processing plants and a potential doubling in capacity of the lithium carbonate plant.

Talison is targeting completion of the resource development program by the end of calendar 2012.

About Talison

Talison is a leading global producer of lithium and has been supplying a global customer network from the Greenbushes Lithium Operations in Western Australia for over 25 years. In anticipation of sustained growth in lithium consumption, driven primarily by the secondary lithium battery market, Talison is developing several growth projects including a lithium carbonate plant in Western Australia and a lithium brine exploration project in 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, among others, those described in the unaudited condensed consolidated interim financial statements of Talison and the related notes thereto as at December 31, 2011 and for the six months ended December 31, 2011 and 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.

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