in sure this has been posted already...


Russia Data Points Re-ignite ORT Interest
EVENT – Reviewing Comments From RUSAL Yields Insights
Several recent aluminum industry data points serve as a reminder of Orbite’s (ORT)
strategic value to the sector.
IMPACT – Comments From RUSAL Promising For ORT Investors
There has been a pick-up recently in comments made by influential leaders within
the Russian corporate and political sphere. The comments indicate a possible pickup
in infrastructure spending in Russia, and the broader Asia/Pacific area. If this
occurs, a recovery in aluminum demand may also transpire. We view these data
points as positive for Orbite as they may be a pre-cursor to an upgrade of the
RUSAL/Orbite MOU to a definitive agreement in the near-term, and/or reignite
takeout speculation of the Company, and/or earlier than anticipated commencement
of licensing revenues. The following are supportive points to this line of thinking.
1) Yesterday, on September 10th, the CEO of UC RUSAL (0486-HK) made
comments at a Russian aluminum conference that indicated RUSAL plans on
aggressively participating in the recent US$158 billion infrastructure spending
program that China announced recently. Given that RUSAL’s core business is
aluminum, participation in this infrastructure program likely entails a step-up in
aluminum production, and a requirement of additional alumina resource
2) A more direct link between Orbite and RUSAL pertains to other comments
made by RUSAL where the aluminum giant specifically makes reference to Orbite,
and how Orbite’s technology may play a vital role in driving RUSAL’s expansion
plans within the sector. On September 4th, RUSAL issued a press release ahead of
the IV International Non-Ferrous Metals Congress that was held in Krasnoyarsk,
Russia on September 5-7. Of particular interest from the press release were RUSAL’s
comments that: “Another research area to be demonstrated at the congress is
alumina production technology using acid instead of caustic soda developed by
RUSAL together with Orbite Aluminae. The implementation of this technology will
enable kaolin clays of Siberian deposits to be used for alumina production and to
lower RUSAL’s Siberian smelters production costs.”
ACTION – BUY; Orbite is a Crown Jewel to Several Industries
We re-iterate our $9.00 target price on Orbite. This note highlights ORT’s value to
the metallurgical alumina industry, but its value extends into other industries such
as high purity alumina, rare earth processing, and red mud remediation.