To say that Orbite Aluminae Inc. (ORT.TO) bled this morning would be putting it mildly as the green technologies company capable of extracting of alumina and other high-value products, such as rare earths and rare metals, from various sources, such as aluminous clay, kaolin, nepheline, and bauxite, all without generating the caustic waste associated with the Bayer process commonly known as “red mud” saw shares crash from an opening of 2.45 down to 1.67 despite the fact there was no news reported.
As quickly as shares tumbled they have been steadily climbing and while the current 2.30 mark is far from their 2.61 high on Monday it is certainly better than where they were at just a few hours ago.
While ORT.TO appears to be in recovery mode what is concerning is the fact that shares crashed for no particular reason. In fact, it has been less than two weeks since ORT.TO announced they had signed an exclusive worldwide collaborative agreement with Veolia Environmental Services for the treatment and recycling of red mud generated by industrial alumina production using the Bayer process.
Through this partnership the two companies will construct the first plant to treat red mud using ORT.TO’s patented process. Success in this endeavor could produce significant results for ORT.TO as their process is the only proven and commercially viable eco-friendly technology for treating Bayer process tailings as it recovers their entire commercial value and can extend the lifespan of Bayer plants.
Considering the environmental dangers present in red mud generated using the Bayer process it would appear that ORT.TO’s treatment and recycling process could become widely accepted by the aluminum industry.
ORT.TO outlined the potential that exists in that February 4, 2013 press release announcing their partnership with Veolia as Richard Boudreault, President and CEO of Orbite, stated “Demand for alumina continues to grow on a global scale, and worldwide stocks of untreated red mud are estimated at nearly three billion tonnes.”
To have the only proven and commercially viable eco-friendly technology for solving this problem obviously puts ORT.TO in a pretty strong position.
As for what occurred earlier this morning there may be some concern about the state of the company’s stability considering the crash but the reality is that crash may have had more to do with shareholders panicking rather than just cause.
For those investors who managed to build a position while shares were falling the reward has already been gained and while there is no guarantee that ORT.TO will climb back to that 2.45 opening from this morning there really isn’t a solid reason as to why it won’t.