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Orocobre's board to get fat fee increase as it rides lithium wave

Business

Brisbane lithium company Orocobre has asked shareholders to approve a $US1.5 million ($A2 million) increase in directors fees and handed its managing director performance rights worth $US1.8 million.

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Orocobre, which merged with Galaxy Resources earlier this year to become one of the world’s biggest lithium producers, has also proposed a name change to Allkem.

The proposals will be out to shareholders at an annual general meeting next month.

The $6 billion company said it would increase the directors’ fees from a total $A850,000 to $US1.5 million. On conversion that’s an increase of $1.23 million. It said the boost was warranted because of an additional board seat (from eight directors to nine) and the need to attract suitable talent.

The company said the previous board fee level was set four years ago and that the company was significantly bigger now. The increase may not necessarily be paid immediately.

Orocobre’s managing director Martin Perez de Solay has would also earn free performance rights valued at $US1.8 million to be issued over a three year period.

de Solay’s current remuneration includes a base salary of $US840,000 and an entitlement of $US166,000 for the successfully completing the merger with Galaxy earlier this year. He als0 has an entitlement to a short term cash incentive of $US420,000 and has already been issued with 874,000 performance rights.

Orocobre’s recent quarterly report showed its Mt Cattlin mine in WA produced a record quarter which produced almost $US70 million in revenue. The Olaroz mine in Argentina generated revenue of $US24 million for the quarter.

It said the lithium carbonate sales price had increased by more than 200 per cent in the past year and its guidance for the December quarter had been revised up to about $US12,000 a tonne.

 

 

 

 

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