• Production of 2,784 tonnes* of lithium carbonate, in line with guidance provided in February 2017
• Sales revenue up 19% on December 2016 quarter (QoQ) to US$32.1 million* on sales of 3,142 tonnes
• Average FOB price received up 13% QoQ to US$10,211/tonne FOB with higher priced contracts reflecting firmer market conditions
• Cash cost of production of US$3,565/tonne, up only 1% QoQ despite lower production volumes
• Gross cash margins up 21% QoQ to US$6,646/tonne reflecting an operating margin of 65% (up from 61% in December 2016 quarter)
• During the quarter, VAT refunds of approximately US$10.1 million were received with total VAT refunds of approximately US$17. 1 million having been received to date
• SDJ made the scheduled project finance repayment of US$13.9 million according to the financing arrangements with Mizuho Bank Ltd and JOGMEC
• Brine volumes were rebalanced through the pond system, increasing area under evaporation by ~20%. In addition, enhancements are being made to physical infrastructure and pond management with additional internal and external resources
• Test work has commenced with two specialized engineering firms to finalise the process engineering for a 10,000 tonne per annum battery grade lithium hydroxide plant in Japan
• Ausenco appointed to undertake engineering design studies for the Olaroz phase 2 expansion
• 2H FY17 production guidance remains 5,500 – 6,000 tonnes and pricing is expected to be approximately US$10,000 per tonne FOB in the June 2017 quarter * all figures 100% Olaroz Project basi
