gegetrane,

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.

 

Alumina1

 

 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

 gegetrane,

The numbers I have are an order of magnitude higher...

 

249.72

$ per ton of mineral resource - overall

114.45

$ 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.

 

Alumina1

 

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 ?