That's the value of mineral resource once processed (aluminous clay containing alumina, hematite, REE/RM,etc.) per ton. Processing costs are approx $44 per ton of clay (equivalent to $210 per ton of alumina - but now, Opex is at least reduced by 20% - see news release of October 2nd, 2012: http://www.orbitealuminae.com/en/news/press-releases/orbite-announces-major-achievements-and-final-design-smelter-grade-alumina-sga-plant/ - = $44*(100%-20%) = $35 per ton of clay - major news that should have its full effect once HPA Plant is producing HP-alumina).
For SGA Plant production:
$ 250 per ton of mineral resource, overall (not including increased REE extraction rates) - $ 35 per ton [costs] = $ 215 per ton, net, 1 billion ton in Marin sector alone = $ 215 billion
And this is without including HP-silica value, HPA from HPA Plants. So Ungandanafrican, the $450 B with the rest of Grande Vallée property and the newly (last year) acquired claims/land (not even considering Nova Scotia kaolin with higher alumina content/lower costs) should be very very easy to justify and should be more like you said, in the Trillions.
With 10 SGA Plants, using only Marin sector 1B ton = 1000 M ton: there are resources for 1000 M ton/(2.6 M ton of clay per SGA Plant per year x 10 Plants) = 38 years @ 5.7 billion EBITDA per year (once the 10 SGA Plants are in operation). Again, this is for Marin first 100m depth alone. Orbite has now claims & land 9x Grande Vallée. Expect significant resource increase. Huge growth Company with exceptional margins.
need some clarification here.
What I meant is : If bauxite at 50% alumina content sells for $40/ton, then a conservative estimate would put clay of 25% alumina content at $20/ton. Conservative in part for not including other resource content.
Now you have a $114.45/ton. Isn't that after processing ? Like the sale price of alumina, hematite, etc... except REE/RM ? I really meant raw ore, like raw bauxite before processing into alumina.
RE: RE: RE: Bauxite and alumina
The numbers I have are an order of magnitude higher...
$ per ton of mineral resource - overall
$ per ton of mineral resource - (exluding REE/RM)
So for the 1 billion ton resource of Marin sector alone is 250 B in raw ore value before processing, AND without considering high-purity silica.
And HPA Plant running will be the confimation that all this is possible. Liftoff.
Considering raw bauxite prices, one could conservatively value Orbite's clay resource to $15-20 / ton, which for the Marin sector only would mean 15-10 billions in raw ore value before any processing.
That's a good colateral against a 200-300M loan for a SGA plant, no ?