Ann: Becoming a substantial holder-ORE.AX, page-19

Not sure if someone has already posted this interview from 28/9 but here are some FACTS


Orocobre Limited MD and CEO, Richard Seville, discusses the company's latest
results and provides an update on its Olaroz lithium facility in Argentina.

Orocobre is an ASX and TSX listed company. We've just entered the ASX 200
index, which is a very proud moment for us. Since we floated in December 2007,
we've been absolutely focused on exploring and developing the Olaroz lithium
project in Northern Argentina. We started production early last year and now
we're coming to the end of our ramp up process.

The highlight is that we achieved profitability, so now we've established
ourselves as a producer. The EBITDAX for the Olaroz project was $7.8 million
in the last two months of the year, those two months since we established
commercial production. We did 6,900 tonnes of production and our ramp up
continues, and we're in a good position to start FY17. The company's very
proud of achieving a number of things. We've taken this project from
exploration, through development and into production. And into profitability
now, that's taken a lot of effort, a big team approach. Financing a challenge,
working in Argentina a challenge, 4,000 metres a challenge. Now we're
established as a profitable low cost producer and that's a great opportunity
for the future.

The stage II expansion is under scoping study process at the moment. It would
be very simple just to look at doubling capacity, go from 17,500 tonnes design
capacity to 35,000 tonnes. But there's the opportunity there to do things a
little bit different. The lithium hydroxide market is a market that's growing
strongly. So as part of the scoping studies, we're contemplating whether we
should be including that in our product mix, or whether we should just be
sticking with lithium carbonate. The end result of that study, or the end of
that process is the end of September and then we can make a decision, how we
should advance into the feasibility studies. And all being well, we could be
looking at commissioning an expanded project at the backend of 2018, with
meaningful production in 2019.

The priority from an operational point of view is to optimise our production
processes. So we have now a plant that we can operate and produce at a low
cost. So it's all about developing optimum operating practises, improved
recovery, reduced operating costs and achieving design throughput. There is a
project that we have to achieve to get the design throughput in the
purification circuit, that's adding a cyclone bank. That should be done in
November and that allows us full capacity through the thickener. But that's
the only mechanical thing that needs to be done; otherwise it's all about
developing a well-versed practise at operating levels.

We've had a strong lithium price over the last year, year and a half. It's
grown from around long-term average of about $5,000/$5,500 a tonne, currently
more than double that. And we're seeing peak pricing in China on the so-called
spot market, of closer to $20,000 a tonne, back in the first half of this
year. That strong price is driven by strong demand. And if we look back over
recent years, we're seeing a strong demand for batteries and consumer
electronics, computers, mobile phones, iPads and then into portable power
tools, and the like. More recently, we're seeing strong demand through the EV
sector and that's going to drive demand going forward, as well as the use of
batteries in renewables and power grid storage.

Now that's one side of the equation. The second side of the equation is the
supply side and the supply side has been muted. So in the past, people
expecting SQM ( NYSE:SQM) and Rockwood Holdings Inc. ( NYSE:ROC), now
Albemarle Corporation ( NYSE:ALB) to provide the lithium for the future. Their
supply response has been muted, it's created a squeeze in supply and hence
we've seen the high prices. But we see that supply squeeze continuing. The
ramp up from other projects, the project pipeline, it always takes longer. So
we see an undersupply situation in coming years and firm pricing in years to
come.

In a year's time, I expect Orocobre to be in a very strong position. We have a
low cost business, we're producing increasing amounts of product and we'll
have strong cash flows through this year. So our balance sheet will improve.
There's about $100 million worth of shareholders funds that have been put in,
in terms of short-term funding to the subsidiary company. That money will all
flow back to our Orocobre in the next two years. And at the backend of next
year, we should be in a position whereby we'll be building our expanded
projects, with the aim of having production kicking off at the backend of
2018, and ramping up into 2019. So in the past years, we've had our trials and
tribulations, we're in a strong position now and we'll have a good year I'm
sure.