PERTH, WESTERN AUSTRALIA--(Marketwire - Oct. 11, 2012) - Talison Lithium Limited ("Talison" or the "Company") (TSX:TLH) today announced its preliminary sales volume and production results for the three months ended September 30, 2012 ("Q1 FY2013").
Preliminary Sales and Production Volume
-- Talison sold 82,410 tonnes lithium concentrate during Q1 FY2013 (or
approximately 12,000 tonnes lithium carbonate equivalent ("LCE")), a 3%
increase compared to Q1 FY2012.
-- The average sales price of lithium concentrates sold during Q1 FY2013
was US$352 per tonne, a 7% increase compared to Q1 FY2012.
-- Production of lithium concentrate for Q1 FY2013 was 126,558 tonnes of
lithium concentrate (approximately 19,000 tonnes LCE).
-- From quarter to quarter sales volume and average sales price may vary as
sales are made in large shipments that can be irregular in timing and in
varying proportions of technical-grade and chemical-grade lithium
-- Talison sold several large shipments in early October in Q2 FY2013.
Production in excess of sales in Q1 FY2013 was in preparation for these
KEY OPERATING TOTAL TOTAL FISCAL 2012 TOTAL FISCAL
2010 2011 Q1 12 Q2 12 Q3 12 Q4 12 2012 Q1 13
Sales Volume(i) 256,767 339,501 80,315 75,221 111,896 98,113 365,545 82,410
Volume(i) 262,539 342,097 90,708 89,015 93,563 83,842 357,128 126,558
(US$/tonne)(i) $281 $308 $330 $310 $340 $351 $334 $352
(i) Tonnes of lithium concentrate
Proposed Acquisition of Talison Lithium by Rockwood
On August 23, 2012, Talison entered into a definitive Scheme Implementation Agreement ("SIA") with Rockwood Holdings, Inc. ("Rockwood") under which it is proposed that Rockwood, or a wholly-owned entity of Rockwood, will acquire 100% of the ordinary shares in the capital of Talison by way of a scheme of arrangement ("Schemes") under the Australian Corporations Act 2001 (Cth) for cash consideration of C$6.50 per share.
Talison expects that approval of the Schemes will be put to Talison Shareholders and Optionholders at meetings that, subject to approval by the Australian Securities and Investments Commission and the Australian Court, are expected to be held in late November 2012.
Further details are included in the executed SIA which is available on SEDAR at www.sedar.com and on the Talison website www.talisonlithium.com.
Talison is a leading global producer of lithium and has been supplying a global customer network from the Greenbushes Lithium Operations in Western Australia for over 25 years. In anticipation of sustained growth in lithium consumption, driven primarily by the secondary lithium battery market, Talison has doubled its production capacity at the Greenbushes Lithium Operations.
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, among others, those described in the Audited Annual Report of Talison and the related notes thereto as at June 30, 2012 and for the three and twelve months ended June 30, 2012 and under the heading "Risk Factors" in the annual information form of Talison for the year ended June 30, 2012 dated September 26, 2012, 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.