Some comments about that preliminary/draft analyst note (at the end of this post), if info is proven to be valid:
- The HPA Plant Quick Analysis I have presented (once ramped up to 5 TPD) is still valid; in fact, even better results can be expected since 20% opex were used ($20k-$30k per ton), whereas with mentioned modifications that should be brought (if info is valid), the production costs can be expected to be lower than $ 10k per ton, which is a more than excellent news.
JayB1, 722M would be for 365 day production
| posted on 1/19/2013 5:27:42 PM | reads: 458 | overall quality: 5
- The additional costs of $25 M ($15 M after 40% R&D tax returns) - mainly for the Outotec oven and some other components - at design production of 5 TPD - would allow annual production cost savings of approx. $30-35 M. So the payback is less than 6 months. That decision is then extremely easy to justify...
- The possibility of doubling HPA production to 10 TPD (with some relatively low additional expenses), and/or building other HPA Plants as mentioned in the Corporate Presentation is providing exceptional growth figures.
Smelter grade alumina
Don't get misled, the smelter grade alumina (SGA) produced using Orbite technology is still expected to have the lowest cost worldwide with the announced of at least 20% reduction of operating costs for SGA (NR of October 2nd, 2012) from PEA figures; that should bring down the SGA Plant operating costs from $210 per ton to $168 per ton, or lower ($ 0.17 per kg). This is without even including any revenue from by-products, for aluminous clay of Grande-Vallée deposit. We can expect lower alumina production costs with higher alumina content raw material such as kaolin or bauxite. But Grande-Vallée deposit has very valuable by-products (RM/HREE/LREE, high-purity silica - with very homogeneous and fine/ultrafine particles size, hematite, Mg oxide,etc.).
Do not get misled, the smelter grade alumina production costs from Red Mud should be in the same ballpark, or somewhat higher than aluminous clay processing; final costs again determined by the value of the by-products that can be all separated using Orbite low-cost and clean technology (titanium oxide, HREE, LREE, RM, hematite, silica, etc.). Veolia did their due diligence and signed for a global partnership. This is MAJOR. Veolia has an impressive global presence that will create a synergy with Orbite Aluminae.
Veolia Environnement S.A. is a multinational French company with activities in four main service and utility areas traditionally managed by public authorities - water supply and water management, waste management, energy and transport services. In 2011, Veolia employed 331,226 employees in 77 countries. Its revenue in that year was recorded at €29.647 billion. It is quoted on Euronext Paris and the New York Stock Exchange. [...]
The significance of having the lowest costs and clean technology:
HPA Plant Demonstrating The Orbite Process
Completing the BFS for end of 2013 seems to be a good and conservative move since it might allow including the optimization made to the HPA Plant that will be apparently now the little brother of the SGA Plant. So, we can expect the SGA figures to further improve because of this optimization. In fact, the estimates (previously presented) based on Net Present Value can be expected to improve.
Here is finally my first estimate of the SGA NPV (Net Prese
| posted on 12/9/2012 3:32:49 PM | reads: 881 | overall quality: 5
It might also provide additional time to some direct neighbor to finalize the study of their energy resource /prepare for production.
P.S. See some further comments below
Event:- Yesterday, Orbite Aluminae (S