The 2.65 is only the price at which Short Interests, in average, are starting to become loser when covering.
All of the stars are getting aligned:
- HPA Plant high-purity alumina production about to begin (or already started). This a MAJOR EVENT for the following main reasons:
- De-risking HPA Plant - high-purity alumina production
- Will also produce gallium and scandium later on this year
- $ 15 per HPA Plant when including HP-silica revenues
- De-risking SGA Plant
- NPV when including announced 20% opex reduction, HP-silica revenues, @ 10% discount rate: $ 15- $ 41 per SGA Plant
- Neglecting rare earth extraction rate increase
- Validation that resources (aluminous clay, Red Mud, Fly Ash, kaolin, etc.) can be industrially/commercially transformed successfully into highly valuable products, using a clean technology with the lowest costs worldwide.
- Patents of a proven and demonstrated technology that works - huge value increase of the patents alone.
- Improving aluminum price since the last 2 months - direct impact on smelter grade alumina price and SGA Plant NPV.
- China continuing applying pressure on REE/RM. Prices can only improve, and so SGA Plant NPV from REE/RM revenues. Orbite becomes a strategic LREE/HREE/RM producer, with clean technology.
- Market beginning to know more about Orbite - not much credibility left for the Short Interests/bashers. Their distorted logic based on Orbite failure has no leg and is turning against themselves. Orbite went all over the World (Brazil, UK, Singapore, etc.) to present their technology.
- Short Interests highly exposed to short squeeze; SIR = approx. 14 days (above 5 days is considered high). May contribute to bring the stock to where it belongs into a spectacular way once Market realize Orbite exceptional value and phenomenal growth potential (multiple HPA Plants, multiple SGA Plants, Bayer process phasing out, huge Red Mud and Fly Ash quantities that can be processed and cleaned into valuable resource, high-purity silica - ultrafine from aluminous clay, LREE/HREE/RM produced at low costs into a clean way)
- Private placement and debenture complete; obtained $ 38 M; no cash flow problem. No/minimal dilution.
- Share price @ $7.50 will force $4.50 warrants exercise and bring an additional $ 40.4 M into Orbite coffer.
Do you realize this stock could increase today 2X, 3X+, and still be cheap? This is a two-digit stock. It is good to have already your tickets for the show. Patience and accumulation. Reward could exceed any expectation.
mindfree, I agree that this increase is still nothing compare to Orbite value.
We will most probably see a tornado even sooner, for example, when the HPA Plant have produced alumina, because HPA Plant running is a MAJOR event and a STRONG validation of Orbite whole business plan and their ability to deliver, and the beginning of the REAL thing (commercial production of high-purity alumina).
Shorts have pushed their luck already too far and it will cost
At $15 per HPA Plant, $15 to $41 NPV per SGA Plant at 10% discount rate, not accounting for Red Mud, Fly Ash, Huge Resources in Quebec and now in Nova Scotia, no need to mention the current share price level is still outrageously low. Patience and accumulation.