Talison Lithium Limited
TSX : TLH

Talison Lithium Limited

January 12, 2011 06:01 ET

Talison Lithium Reports Record Sales and Production Results for Second Quarter 2011

PERTH, WESTERN AUSTRALIA--(Marketwire - Jan. 12, 2011) - Talison Lithium Limited ("Talison") (TSX:TLH) announces its preliminary production results for the three and six months ended December 31, 2010 from its Greenbushes lithium operations in Western Australia (the "Greenbushes Lithium Operations"). For the six months ended December 31, 2010, production increased 32%, and sales increased 33% over the six months ended December 31, 2009.

Greenbushes Lithium Operations – Second Quarter 2011 Financial Year Production Results

Record production and sales were achieved from the Greenbushes Lithium Operations during the second quarter 2011 as a result of continued strong demand from customers, a successful ongoing production process improvement program and the early commissioning of the Stage 1 expansion. Talison continues to produce at capacity and sell 100% of its production.

Talison expects further improved production for the third quarter of the 2011 financial year, as a result of the completion of the Stage 1 expansion of the Greenbushes Lithium Operations in December 2010.

Key Operating Statistics

  Financial Year ended
June 30, 2011(1)
Financial Year ended
June 30, 2010
Percentage Change
Financial Year ended June 30, 2011
to Financial Year ended June 30, 2010
  Three Months Ended September 30, 2010 Three Months Ended December 31, 2010 Six Months Ended December 31, 2010 Three Months Ended September 30, 2009 Three Months Ended December 31, 2009 Six Months Ended December 31, 2009 Three Months Ended September 30 Three Months Ended December 31 Six Months Ended December 31
Production* 80,729 83,548 164,277 64,950 59,782 124,732 24% 40% 32%
Sales* 52,525 97,559 150,084 49,386 63,309 112,695 6% 54% 33%
* Tonnes of lithium concentrate

Sales of lithium concentrate from the Greenbushes Lithium Operations in the second quarter 2011 increased substantially from 2010, with 97,559 tonnes of lithium concentrate (approximately 14,500 tonnes of lithium carbonate equivalent) sold, representing a 54% increase over the second quarter of 2010.

Sales for the first half of 2011 were 150,084 tonnes of lithium concentrate (approximately 22,200 tonnes of lithium carbonate equivalent), representing a 33% increase over the first half of 2010.

Production during the second quarter 2011 increased 40% over the second quarter 2010 to 83,558 tonnes of lithium concentrate (approximately 12,400 tonnes of lithium carbonate equivalent).

Production for the first half of 2011 was 164,277 tonnes of lithium concentrate (approximately 24,300 tonnes of lithium carbonate equivalent), representing a 32% increase over the first half of 2010.

Differences between production and sales of lithium concentrate for the first and second quarters are as a result of timing differences between production schedules and shipment schedules.

In addition to record second quarter production of lithium concentrate, the Greenbushes Lithium Operations also produced and sold a parcel of 12,206 tonnes of crushed ore. The sale of crushed ore to a key customer was a short term measure to meet market demand until Talison completed the Stage 1 expansion of the Greenbushes Lithium Operations. As this expansion has now been completed, Talison does not anticipate selling any further parcels of crushed ore.

Expansion of the Greenbushes Lithium Operations

Commissioning of the Stage 1 expansion of the Greenbushes Lithium Operations has now been completed.

Talison is continuing to plan the Stage 2 expansion. Detailed design work is progressing and to ensure that Talison is able to proceed with the expansion in calendar 2011 as originally planned, long lead time items have been ordered.

Salares 7 Project

Preparatory works are being undertaken for the commencement of drilling at the Salares 7 Project in Chile. Access roads to drill sites are being constructed, and sampling protocols and procedures have been developed. The Salares 7 camp is now fully operational and the first drilling program is expected to commence in early February 2011.

Refinance of Senior Finance Facility

As announced on November 12, 2010(2), Talison entered into an agreement with the Commonwealth Bank of Australia to refinance its senior finance facility on more commercially favourable terms. Financial completion of the refinancing was successfully reached in December 2010.

Recent Flooding in Australia

The recent major flooding in Australia is predominantly in Queensland on the east coast of Australia, over 4,000km from Talison's operations at Greenbushes in Western Australia. Accordingly, none of Talison's operations at Greenbushes are being affected by the floods and no impact from the floods is expected on Talison's production or shipment schedules. The Talison Board and Management team's thoughts are with those families affected by the flooding.

About Talison

Talison is a leading global producer of lithium. Talison mines and processes the lithium bearing mineral spodumene at the Greenbushes Lithium Operations in Western Australia. In addition, Talison explores for lithium at the Salares 7 lithium project made up of seven salars located in Chile. Talison has an extensive, well established global customer network and a leading position in the growing Chinese market.

(1) The results for the first quarter are in respect of Talison's first reporting period, being July 1, 2010 to September 30, 2010, however prior to August 12, 2010, Talison was a dormant entity and did not trade in any capacity. In order to cover the three-month period ended September 30, 2010, certain financial and operating results in respect of the Greenbushes Lithium Operations for the period from July 1, 2010 to August 11, 2010 have been provided for reference purposes.

For further information refer to Management's Discussion and Analysis of the financial condition and results of operations of Talison Lithium Limited as at September 30, 2010 and for the first interim period from July 1, 2010 to September 30, 2010 (which can be found on Talison's SEDAR profile at www.sedar.com and Talison's website www.talisonlithium.com).

(2) For further information refer to Management's Discussion and Analysis of the financial condition and results of operations of Talison Lithium Limited as at September 30, 2010 and for the first interim period from July 1, 2010 to September 30, 2010.

Cautionary Note Regarding Forward-Looking Statements

This release contains "forward-looking statements" which reflect the current expectations of Talison. When used in this release the words "will", "anticipate", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements reflect Talison's management's current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements involve significant known and unknown risks, uncertainties, factors and assumptions. Accordingly, readers should not place undue reliance on forward-looking statements. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. Should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this release.

The forward-looking statements contained in this release are expressly qualified in their entirety by this cautionary statement. Although the forward-looking statements contained in this release are based upon what Talison believes to be reasonable assumptions, Talison cannot assure investors that actual results, performance or achievements will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and Talison does not assume any obligation to update or revise them to reflect new events or circumstances.

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