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Long a buy and hold investor, I now believe that buy and hold has to be re-evaluated in a world of ever increasing, instant information and huge gyrations in markets all over the world. A value investor at heart, I anchor my portfolio with conservative funds and blue chip dividend stocks, but... More
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  • Talison Lithium reports positive outlook for lithium price increases, and production. 0 comments
    Oct 6, 2011 4:40 PM | about stocks: TLTHF, RDNAF, LIT
    Talison Lithium - TSX-TLH

    Earlier this week, I contacted Talison Lithium to ask about any recent events that might move the stock price. I wanted to know if their were any price increases in the offing for their product, any new customers over and above the 300 current customers (mostly in China) which have sustained their operations at Greenbushes Australia and how they were developing their Salares 7 brine project in South America.

    Here is the reply from Talison investor relations:

    Talison continues to produce and sell lithium concentrate at its maximum capacity. For the 2011 financial year (results of which were announced about 2 weeks ago) production and sales volumes increased 30% and 32% respectively year over year, and Talison generated revenue of A$109 million and EBITDA of A$24 million, increases of 29% and 35% compared to the previous year.

    Talison has continued strong demand for all its lithium concentrates from customers around the world. And until completion of the expansion of the Greenbushes Lithium Operations (expected in second calendar quarter 2012) the Company expects production and sales volumes to be capacity constrained.  Construction of the expansion is continuing on schedule and remains on time and on budget.

    In the current quarter, Talison has secured price increases for two shipments and believes this, together with recent price increases from other lithium producers, are reflective of a tightening in global lithium supply. The tightening in global supply is expected to enhance Talison’s sales prices in the 2012 calendar year.

      Talison acquired the Salares 7 Project about a year ago, and the first drilling program was completed earlier in 2011 with highly encouraging results. Since then (during the winter in Chile) Talison has been planning the next stage of exploration which will commence in the next Chilean summer. Talison will invest approximately A$5 million in the programme including further drilling, process test work and collection of environmental data. Drilling will be focused on Salar de la Isla to define a potential lithium mineral resource estimate, as well as initial drilling at Salar de Aguilar and Salar Grande.

    Responding to growing global demand for an additional secure supply of lithium carbonate, particularly from electric vehicle battery manufacturers, Talison is also aggressively pursuing its proposed plant to convert lithium minerals into lithium carbonate. Preliminary engineering studies for the proposed plant have commenced with a target of commissioning in financial year 2015.

    Happy Investing.

    Stocks: TLTHF, RDNAF, LIT
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