Orbite Aluminae’s (TSX:T.ORT
, Stock Forum
) share price dropped 8% today (shedding $0.05 to $0.54) on news the company is experiencing continued delays in the technical process at its high purity alumina plant, which aims to recover alumina from ores and recycled materials.
The company reported intermittent production of 50 kilograms of alumina per day in August before operations were suspended to allow the completion of steam, process air and waste water treatment systems.
The facility is intended to deliver 3 tonnes per day.
Intermittent operations reportedly resumed in October to allow the company to produce commercial (4N+) samples to be sent to prospective customers.
“Orbite wishes to note that it has no present concerns related to impurities in its process and does not perceive this to be a major issue going forward,” according to a company statement.
“The main issue that led to intermittent and reduced output operations is an equipment issue related to calcination, and not a process related issue,” say officials. “The detailed design of a Circulating Fluid Bed (CFB) calcinator has been completed by a supplier for Orbite.”
The downside? It’ll take seven months from the time the order is finalized to deliver the calcinator.
“The order is expected to be placed within three months following the raising of the necessary capital,” continued the statement.
To clarify – the company must:
Raise funds (time unknown)
Order the calcinator (three months)
Receive the calcinator (seven months)
Install the calcinator (time unknown)
The company hopes to be producing 5 tonnes per day by the second half of 2015, if the necessary capital is raised.