Talison Lithium Concludes First Sales Contracts for 2012 With 15% Price Increase
PERTH, WESTERN AUSTRALIA -- (Marketwire) -- 12/05/11 -- Talison Lithium Limited ('Talison' or the 'Company') (TSX: TLH) today announced that it has achieved 15% price increases for the first contracts concluded for calendar 2012 sales. The Company also provided an update on its Greenbushes Lithium Operations and proposed lithium minerals conversion plant.
Price Increases
Talison is currently engaging in discussions with its customers with regards to prices for calendar 2012 sales. A number of contracts have been concluded and price increases of 15% have been achieved for sales to customers in China, Europe, US and Japan across a range of lithium concentrate products.
The price increases reflect current lithium market dynamics and are consistent with Talison's previously stated objective of pursuing prices that enable existing producers to justify the capital expenditure necessary to maintain a secure and growing supply of lithium in the future. Talison is optimistic it will achieve similar price increases in the remaining sales contracts it is negotiating for calendar 2012.
Greenbushes Stage 2 Expansion
The Stage 2 Expansion at the Greenbushes Lithium Operations continues to proceed on schedule and on budget. Foundations for the new chemical-grade plant are substantially complete and installation of steel-work has commenced.
The Company continues to expect commissioning of the Stage 2 Expansion during Q4 FY2012. Upon completion, the Stage 2 Expansion will more than double Talison's current production capacity to approximately 740,000 tonnes per annum lithium concentrate (approximately 110,000 tonnes per annum lithium carbonate equivalent ('LCE')).
To view the photo 'Commencement of steel-work as part of the Stage 2 Expansion at the Greenbushes Lithium Operations', please click the following link: http://media3.marketwire.com/docs/tlh1205a.pdf.
Proposed Minerals Conversion Plant
Responding to growing global demand for an additional secure supply of lithium chemicals, particularly from electric vehicle battery manufacturers, Talison is aggressively pursuing its proposed plant to convert lithium minerals into lithium carbonate ('Minerals Conversion Plant').
After a review of the status of the Minerals Conversion Plant yielded encouraging progress to date, the Talison Board approved starting the next phase of the project at a cost of A$3.7 million.
Commencing in early calendar 2012, the next phase of the project includes a detailed engineering study of a 20,000 tonnes per annum lithium carbonate plant located in Western Australia. Talison is targeting commissioning in FY2015 and anticipates making an investment decision on the project by the end of calendar 2012.
Discussions with potential customers for the Minerals Conversion Plant are continuing positively. Talison is currently focusing on customers located in the North Asia region and is receiving considerable encouragement to expedite development of the project.
To view the photo 'Talison's proposed Minerals Conversion Plant', please click the following link: http://media3.marketwire.com/docs/tlh1205b.pdf.
About Talison
Talison is a leading global producer of lithium. Talison has been producing lithium concentrate for a global customer network from the Greenbushes Lithium Operations in Western Australia for over 25 years. In addition, Talison explores for lithium at the Salares 7 lithium project made up of seven salars located in Region III, 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, amount others, those described in the unaudited condensed consolidated interim financial statements of Talison and the related notes thereto as at September 30, 2011 and for the three months ended September 30, 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.
Contacts:
ICR, LLC - Investor Relations
Gary T. Dvorchak, CFA
Senior Vice President
1 (310) 954-1123
Gary.Dvorchak@icrinc.com