ASQ - Australian Silica Quartz Group

[Lucky_Country]

Some great tennaments xxxxxxxxxxx, or so has been said.
Long way to go but does look promising on the rise of China.

 

[JTLP]

Re: BAU - Bauxite Australia

How's about some info IJH?

Projects
Market Cap
Share Issue
JV's
Potential scale of projects

Just to name a few things :

 

[Lucky_Country]

Re: BAU - Bauxite Australia

Early days yet but 6000km of tennament in known bauxite regions.
Plans for 1 million tonnes of dso for early revenue.
Management a bit hard to find out about and still on the hunt for a CEO.
China will drive Aluminium consumption and the purchase of Alcan is a great sign for that metal.
100 million shares on offer with $7.6 million in the bank.
Looks very promising too me if you believe in the demand for commodities will continue.

 

[AJ_]

Re: BAU - Bauxite Australia

Lots of potential in this one.... creeping up slowly !


Good to see the sell side drying up too...

13 February 2008 - Bauxite Resources reported negative cash flow of
$818,000 for quarter ended 31 December 2007. Operating cash flow for
the period was $(226,000). Payments for exploration and evaluation
were $(121,000). Investing cash flow was nil. Financing cash flow was
$(592,000). Cash in hand at the end of the quarter was $7.78m.
29 January 2008 - Bauxite Resources announced the appointment of
international professional services group, WorleyParsons, to undertake
an initial Scoping Study on the company's highly prospective Muchea
and South Darling Range bauxite projects in Western Australia, with a
view to commencing a pre-feasibility study. The scoping study will
examine and review historical data from Bauxite Resources extensive
land holdings in the Darling Ranges, near Perth, a region that produces
approximately 17% of the world's alumina.
23 January 2008 - Bauxite Resources released an Appendix 3B
announcing a non-renounceable entitlements issue of 53.82m Options
on the basis of one Option for every 2 Shares held by shareholders
registered at 5.00pm (WST) on 1 February 2008 at an issue price of 1
cent per Option to raise approx $538,188. The closing date will be 17
March 2008.
23 January 2008 - Bauxite Resources released a prospectus
announcing a non-renounceable entitlements issue of 53.82m Options
on the basis of one Option for every 2 Shares held by shareholders
registered at 5.00pm (WST) on 1 February 2008 at an issue price of 1
cent per Option to raise approx $538,188. The closing date will be 17
March 2008.

 

[grace]

Re: BAU - Bauxite Australia

Now, I have been researching this for the last couple of weeks. Didn't think we had a thread on it. It is Bauxite Resources. I guess I must have searched under that instead of BAU!

 

[grace]

Re: BAU - Bauxite Australia

Here is an interesting display of bau's tenements (coloured) in relation to location of infrastructure on You Tube...


http://www.youtube.com/watch?v=GCcU3ESlpk4

 

[pattyp]

Re: BAU - Bauxite Australia

Trying to get my head around the potential here... This is NOT a recommendation or detailed analysis.

Hoping some other minds can take a look and give me an opinion…

Before I start buying, does anyone have a better grasp of this project...?


According to the recent Qtrly, pg 2...

- 2mt/pa direct shipping Bauxite
- Historic drilling indicates a >30mt potential at North Darling. Max depth 12metres
- Huge exploration area in a hot Bauxite region.

Should be open pit, Perth Less than 300kms, so transport is minimal.

I would expect CAPEX to be 100-300m.
OPEX maybe 100-150 p/ton

And the best Ore pricing estimate I can find is based on Alumina at $600p/ton.

Bauxite is 50% Alumina so I would estimate it to go for $250-$300 p/ton.

So initially a 500m revenue a year project, 250m profit... 2yr Payback of debt.

Current MCap is 40m, Cash 8m...

Cheers,
Pat


BAU QTRLY:
http://www.asx.com.au/asxpdf/20080430/pdf/318wsk64fpwcx2.pdf

References:
http://www.bauxiteresources.com.au/

http://www.riotinto.com/whatweproduce/452_aluminium_3530.asp

http://www.chinamining.org/News/2008-01-14/1200291159d8637.html

http://www.businessspectator.com.au...-first-bauxite-billionaire-DFTZC?OpenDocument

 

[grace]

Re: BAU - Bauxite Australia

I've been researching these for a few weeks and bought some options dearly (24c the other day).

Spoke to Luke Atkins (Chairman if I can recall, don't quote me on it) at length on several occasions.

They have the resources in the ground.....$50 million (todays equivalent) spent in the 70's on drilling up the ground by Lang Hancock JV with CSR subsidiary Pacminex. From memory, that's only in one area. They had everything done, apart from approval of alumina refinery at Upper Swan Valley. Govt gave a negative, BHP got the positive and the rest is history. The JV fell apart and Lang went hunting for other minerals. That's what I can gather from my reading.

Nearlly 30 years later, the Bauxite is sitting in the ground and little old BAU are putting their hand up to take advantage of it.

Anyone in Perth would be able to find newspaper clippings on the size of the Alumina refinery at Upper Swan Valley (given the negative due to environmental reasons).

BAU are in a very interesting position. Luke said he just went to China, visiting the alumina refineries and chatting to the govt. Not just chat I'm sure. He also said Saudi Arabia are gearing up in a big way for smelting and don't really have the bauxite, but have the energy. Interesting comment.

So, interesting times ahead.

Luke also advised they tried to get a waiver to issue the non jorc resource per previous drilling to the public, but this was ruled against them. They do however know what they are holding per Luke, even if they can't disclose.

I'll post some more interesting facts very soon.

MC is nice and low on this one. Sure to be an interesting year when they bring up that old drilling to jorc compliant resource.

 

[grace]

Re: BAU - Bauxite Australia

Ownership in BAU

Shares on issue 107 million (43.7million are tradeable, balance in escrow)

Top 20 hold 70.9 million which is 66.3%

Directors hold over 50%

Fairly tightly held.

MC undiluted $17 million (cash at bank $8 million)

And from the quarterly.....

Chinese government authorities estimate that China may import up to 31 million tonnes of bauxite in 2008, up from approximately 22 tonnes in 2007.

 

[pattyp]

Re: BAU - Bauxite Australia

Awesome, Thanks - Looks to have multi-bagger potential to me....

I got a diluted MCap at... 33m head + 6.5m ops = 40m'ish...?

Still, looks very good if they can very quickly Jorc up the historical >30m tons of direct shipping ore. 2mt/pa... And being so close to Perth and shallow depth that 2mt could grow to 3-4mt/pa... Making BAU part of the billion dollar club.

Early days Revenues of maybe 500 million, 40% Op. Margin...

The MCap should grow quickly over the next 12months. Especially if Bauxite air play continues to increase.

I will start slowly collecting these I think

Cheers,
Pat

 

[grace]

Re: BAU - Bauxite Australia

Awesome, Thanks - Looks to have multi-bagger potential to me....

I got a diluted MCap at... 33m head + 6.5m ops = 40m'ish...?

Still, looks very good if they can very quickly Jorc up the historical >30m tons of direct shipping ore. 2mt/pa... And being so close to Perth and shallow depth that 2mt could grow to 3-4mt/pa... Making BAU part of the billion dollar club.

Early days Revenues of maybe 500 million, 40% Op. Margin...

The MCap should grow quickly over the next 12months. Especially if Bauxite air play continues to increase.

I will start slowly collecting these I think

Cheers,
Pat

I am of the opinion that they are targeting deposits of over 30 individually (not collectively) ie they have many deposits to look at with resource individually over 30million tonne each.

 

[pattyp]

Re: BAU - Bauxite Australia

Reference to 2008 Qtrly, Pg 2:
http://www.asx.com.au/asxpdf/20080430/pdf/318wsk64fpwcx2.pdf


"North Darling Range

BAU has moved quickly since listing on the ASX to complete an initial data review of historic exploration and resource data estimates made on the Chittering Alumina Project by Pacminex. The review has identified areas in the North Draling Range to have the highest potential to yield >30 million tonnes of direct shipping Bauxite"


In my opinion that means >30m is the start and they will have a lot, lot, lot more bauxite in their 31 tenements (3 licenses granted in North Darling).

So yea, individually, not collectivly... Long mine life even if they ramp to 4mt/pa

Looks hot ! ! !

 

[pattyp]

Re: BAU - Bauxite Australia

Below is an excellent description of a Bauxite/Aluminium Ore operation, straight from the RIO web-site...

This stuff is easy to find when looking in the right place, and even easier to dig up...

OPEX and CAPEX for BAU should be very low.... Excellent project.


http://www.riotinto.com/whatweproduce/452_aluminium_3530.asp

Bauxite
Bauxite is the mineral form of aluminium, occurring naturally in the earth's crust, and containing about 50 per cent alumina. It is formed by the weathering of sedimentary rocks which contain a high proportion of aluminium-bearing minerals. Bauxite is normally found in a layer averaging three to five metres deep, located about half a metre beneath the topsoil. Mined bauxite resembles small red pebbles, called pisolites, averaging about five millimetres in diameter.

Mining and processing bauxite
Initially, samples are collected by drilling a series of holes to a depth of 3.5 metres, 75 metres apart in a grid formation. This allows mining engineers to determine where to mine based on the amount of alumina, silica and iron present in the bauxite samples.

Once the area to be mined has been determined, vegetation is removed and the topsoil stripped and taken to be used in an area awaiting regeneration, in keeping with our commitment to sustainable development. This topsoil contains beneficial bacteria and organisms that assist newly planted trees to grow over previously mined areas.

Bauxite exists in free-flowing form, which makes it relatively easy to dig out of the ground. Front end loaders load the bauxite into 150 tonne bottom-dump trucks, which take the ore to a dump station for transportation to the processing plant (called a beneficiation plant) by rail and belt conveyor.

At the beneficiation plant, the bauxite is screened and washed to remove fine particles. It is then placed on stockpiles, which are loaded onto ships. Most of Weipa's beneficiated bauxite is transported to Gladstone, also in Queensland, where it is refined into alumina at the Queensland Alumina Limited (QAL) and the Yarwun Alumina Refinery. The remainder is exported to the Eurallumina refinery in Sardinia, Italy, and also to third party customers.

Alumina
Alumina is the name given to aluminium oxide (Al2O3), which is extracted from bauxite via a refining process known as the Bayer process. In general, it takes about two tonnes of bauxite to produce one tonne of alumina.

 

[pattyp]

Re: BAU - Bauxite Australia

Seems to me that things are lining up for Bauxite Res...

"...the aluminium market is expected to be roughly balanced in 2008 and that global aluminium demand is set to rise by 9 percent in 2008, while Chinese demand is set to grow by 24 percent..."

"...operations are set to rise in 2008 as energy and bauxite prices rise..."


http://www.forbes.com/markets/feeds/afx/2008/05/01/afx4956547.html

Australia's Alumina says surging Chinese demand to underpin alumina prices
05.01.08, 4:13 AM ET

SYDNEY (Thomson Financial) - Australia's Alumina Ltd. said on Thursday that surging Chinese demand for aluminium is set to keep the market for the metal strong and underpin alumina prices.

'Aluminum prices are expected to remain robust,' chief executive John Marlay told shareholders at the company's annual general meeting in Melbourne.

Alumina has a 40 percent stake in the Alcoa Inc. operated Alcoa World Alumina & Chemical (AWAC) joint venture, which competes with companies such as the world's largest aluminium producer Rio Tinto and BHP Billiton on world markets.

Marlay said the aluminium market is expected to be roughly balanced in 2008 and that global aluminium demand is set to rise by 9 percent in 2008, while Chinese demand is set to grow by 24 percent.

His comments mirrored those of BHP Billiton Aluminium president Jon Dudas on Thursday after BHP approved a $1.9 billion expansion of the group's 86 percent owned Worsley alumina refinery in Western Australia.

Dudas said the decision to lift capacity at one of the world's largest alumina refineries to 4.6 million tonnes a year from 3.5 million tonnes underlines the group's confidence in the long-term alumina market.

Alumina chairman Don Morley said costs at the AWAC operations are set to rise in 2008 as energy and bauxite prices rise. He said a stronger Australian dollar will also impact on Alumina's earnings.

AWAC comprises an integrated global network of bauxite mines and alumina refineries around the world which supply global markets with alumina, the primary raw material in the manufacture of aluminium.

Morley said aluminium consumption is forecast to double by 2020 as countries such as China, India, Brazil, Russia and other developing countries consume more of the metal.

bruce.hextall@thomsonreuters.com

-

bhx/ng

COPYRIGHT

Copyright Thomson Financial News Limited 2008. All rights reserved.

 

[grace]

Re: BAU - Bauxite Australia

If I could ask for help on two things.....

- how do we change the name of this thread to Bauxite Resources?

- what was the size of the planned alumina refinery at Upper Swan Valley in the 1970's that was knocked on the head? Look for newspaper clippings.....

 

[pattyp]

I think u simply hit reply, and then change the title... {Im trying now }


"size of the planned alumina refinery at Upper Swan Valley in the 1970's "

Not sure about the processing capacity, I'll keep looking...

Personally, I would rather BAU simply ship the Ore to someone else who wants to process it... Save on CAPEX for the first few years.

See below some data on the refinery and why it fell over, plus a ramp for Bauxite


http://www.theaustralian.news.com.au/story/0,25197,22820030-18261,00.html
Bauxite bounty, thanks very Muchea

WESTERN Australia's Environmental Protection Authority has been a thorn in the side of many a mining company and, when brought into existence in 1971, it hit the ground running by opposing the building in the Upper Swan Valley of the proposed Pacminex alumina refinery.

That company - a subsidiary of CSR - was offered another site at Muchea but the refinery did not go ahead. Economics played a part, but so did a falling out between Pacminex's joint venture partner, Lang Hancock, and the then newly elected Labor premier, the 69-year-old John Tonkin.

This led the state government to give the tick to the rival smelter being promoted by the then BHP.

Muchea is located in the Darling Ranges where BHP Billiton has its Worsley bauxite and alumina operation. The region produces 17 per cent of the world's alumina.

CSR spent $2 million exploring Muchea, which would equate to about $50 million in today's money.

That paid for 10,000 drill holes and 80,000 samples, as well as a feasibility study.

None of the drill results is JORC-compliant, but there's clearly a good deal of bauxite there.

Fast-forward to 2007, and we have Bauxite Resources, holder of the Muchea property, which listed last month. Last week, it took on board as non-executive director David McSweeney, who helped build the now Gindalbie Metals, a serious iron ore player in the Mid West region.

McSweeney thinks his new interest might have done a Fortescue Metals Group - that is, slipped through the cracks and under the noses of the majors, into a very large resource.

As Andrew Forrest and FMG picked up swaths of iron ore ground in the Pilbara which the big players had known about for years, so McSweeney feels that has been replicated at Muchea with bauxite. The next 12 months will be spent dusting off all the old records. But the doors have already started revolving with potential customers calling to find out more.

 

[pattyp]

Re: BAU - Bauxite Australia

Pie in the sky stuff without JORC... But think about this... Based on Qtrly.

2mt/pa * $250p/ton = 500m revenues.

At 12m deep Open Pit, 300km to Perth for Ship. OPEX couldnt be anymore then $125p/ton.

2mt/pa * ($250-$125) = 250m profit.

250m / 161m shares (Diluted) = $1.55 EPS

If you convert it to P/E of 8 its approx.
(500m * 8) = 4b MCap

4b MCap / 161m Shares (Diluted) = $24.80 per share.

$24.80 / $0.42 = 59-bagger from here!!!

This is WAY under valued IMO - Even without JORC.

OMG - Imagine if they ramp to 4mt/pa...?

DYOR - But I think it has multi-bagger all over it

 

[pattyp]

BHP Approves $1.9 Billion Worsley Alumina Expansion

May 1 (Bloomberg) -- BHP Billiton Ltd., the world's largest mining company, approved a $1.9 billion expansion of the Worsley alumina project in Western Australia, adding export capacity to meet demand from aluminum smelters.

``The expansion project will lift capacity of the Worsley refinery from 3.5 million tons per annum of alumina to 4.6 million tons,'' the Melbourne-based company said today in a statement. BHP said in April 2006 it planned to expand by 800,000 tons at the plant at a cost of $700 million.

BHP and takeover target Rio Tinto Group are adding production of alumina, a powder refined from bauxite ore that's processed into aluminum metal, to meet demand for the lightweight metal. The price of alumina for immediate delivery has risen 14 percent this year, according to Metal Bulletin.

``It is certainly a reasonable sized expansion and will increase Australian alumina exports significantly,'' said Kate Penney, an analyst at the Australian Bureau of Agricultural and Resource Economics.

Average alumina spot prices for the year will rise to $365 a ton this year, up from the average $341 last year, said Penney. Prices for both alumina and aluminum will rise this year as China's slows its production, crimping supply, Alumina Ltd., partner in the world's biggest producer of alumina, said today.

`Our Confidence'

BHP rose 63 cents, or 1.5 percent, to A$42.90 at the 4:10 p.m. Sydney time close on the exchange. It has gained 7 percent this year compared to a 12 percent decline in the benchmark index.

``The decision to invest in further production capacity underlines our confidence in the future of the alumina market,'' BHP Aluminum President Jon Dudas said in the statement. Construction will start immediately and first production is expected in the first half of 2011, BHP said.

Worsley is a joint venture with BHP holding 86 percent, Japan Alumina Associates Ltd. 10 percent and Sojitz Alumina Pty 4 percent. The expansion will expand mining, add refinery capacity and upgrade the port, BHP said.

Alumina from Worsley is sold to customers and is also used at BHP's own aluminum smelters, BHP spokeswoman Samantha Evans said today. The aluminum unit accounted for 15 percent of BHP's sales in the year ended June 30, according to Bloomberg data.

BHP is also developing an alumina refinery in Guinea with Global Alumina Corp. and raised the cost estimate by 11 percent to $4.78 billion in March because of a weaker dollar and higher construction expenses.

The price of aluminum has risen 22 percent in London this year. Consumption of the metal, used to make beverage cans and aircraft, in China may rise 15 percent a year through to 2015, Rio's head of aluminum Dick Evans said yesterday. Rio may boost output at the Queensland Alumina Ltd. refinery by 26 percent, he said.

http://www.bloomberg.com/apps/news?pid=20601081&sid=axa3k0wH1hnE

 

[pattyp]

Aluminium price jumps following South African power crisis

The aluminium price has jumped in response to fears that supply may tighten following the power crisis in South Africa.
Author: Daniel Magnowski
Posted: Thursday , 14 Feb 2008

LONDON (Reuters) -

Aluminium rose more than 4 percent on Thursday to its highest level since July 2007 at the London Metal Exchange, driven by fears of reduced supply owing to power shortages in South Africa and China, analysts said. Aluminium for delivery in three months ended the official open outcry session at $2,785 per tonne, up $94 from Wednesday's close, after earlier trading up to $2,825, a seven-month peak.

"Aluminium is moving on power outages in China and South Africa that mean there could be a supply shortfall," said Commerzbank analyst Barbara Lambrecht

State utility Eskom is considering a complete power supply buy-back from both of the country's aluminium smelters plus one in Mozambique for the balance of 2008, which could remove around 1.5 million tonnes a year of aluminium from the global market. World production stands at around 40 million tonnes, analysts estimated.

"The metal is on the verge of breaking out of its $2,400-2,800/t range which has held for the past 18 months and an upside break could therefore be very powerful considering how short the market remains," UBS analyst Robin Bhar said in a report.

Power problems could push prices higher in the longer term, analysts said.

"This move is extremely significant, as it could tilt (aluminium's) supply demand balance from a modest 400,000 tons surplus ... to a million ton deficit," analyst Edward Meir at brokerage MF Global said in a report.

The South African power crisis also pushed prices of platinum to an all-time high of more than $2,000 per ounce. The country is the world's primary source of the precious metal.

One percent of aluminium production in Chalco's Guizhou plants, suspended in late January due to a power shortage caused by snowstorms, had resumed, the company said on its Web site on Wednesday.

The Guizhou smelters could take a month to resume full operations, an analyst said.

LME aluminium prices are up 15 percent this year, underpinned by high energy prices, while falling inventories have helped lift copper by around the same amount. By contrast, equity markets have lost value. The Dow Jones Industrial Average is down 5 percent since the end of last year.
...

http://www.mineweb.com/mineweb/view/mineweb/en/page504?oid=46914&sn=Detail

 

[pattyp]

01 May 2008 06:33 GMT
DJ UPDATE: Alumina Says Higher Prices To Help Fund Growth

By Alex Wilson
Of Dow Jones Newswires


MELBOURNE (Dow Jones)--Alumina Ltd. (AWC.AU) Chief Executive John Marlay said
Thursday the rising aluminum price looks set to boost cashflow and should help
the company finance its spending on expansion projects and reduce its reliance
on debt.

Marlay said Alumina's debt has risen about A$100 million from A$977 million
as at the end of 2007 and the company still expects to spend about US$480
million this year on its share of the development of the Juruti bauxite mine
and expansion of the Alumar alumina refinery in Brazil.

Alumina had planned to fund half its capital spend this year from operating
cashflow and half by debt, but Marlay said improving margins may mean it can
take on less debt.

"Rising aluminum prices, on the back of very strong demand and tight
supply is going to improve the margins in the business and that's going to add
to cash generation of the business," he told reporters after the company's
annual general meeting in Melbourne Thursday.

Alumina expects global demand for aluminum to rise by 9% in 2008 and for
Chinese consumption to climb 24%.

Marlay said there had been a "paradigm shift" in energy prices and the higher
cost was likely to limit the development of new smelting capacity in China.

"In our view that, along with other factors such as higher investment costs
and tight supply, is going to lead to stronger prices in the long run," he
said.

Alumina's sole asset is its 40% non-operated stake in its Alcoa Worldwide
Alumina and Chemicals joint venture with Alcoa Inc. (AA).

Alcoa, once the world's biggest aluminum producer, missed out on taking over
rival Alcan and now risks being outmuscled by Rio Tinto Ltd. (RTP) and Russian
aluminum giant United Co. Rusal. There has been plenty of speculation it may
look to take over Alumina as it chases growth.

Marlay declined to comment on the prospect of a takeover bid from his joint
venture partner, but said further industry consolidation is likely.

"There is always going to be some further consolidation - the question of
what Alcoa's aspirations may or may not be is really a question for them," he
said.

"From our perspective the AWAC joint venture is a business that is going to
get stronger and we both benefit from that."

Marlay is set to step down in July and his replacement John Bevan fronted the
media Thursday for the first time since his appointment was announced.

Bevan is a former senior executive with U.K. gas group BOC but he most
recently took a job heading up the mining business of Downer EDI Ltd. (DOW.AU)
only to leave after eight weeks.

"The year end accounts led to the company making an adjustment on its profit
and I made the decision that it was better for me to leave than to participate
any further with the company," Bevan said.

Bevan said his experience at BOC would be valuable at Alumina, as both were
very capital intensive industries where it was crucial to make the right long
term decisions about where to deploy resources to chase growth.

Alumina shares ended trading Thursday up 2.4%, or 14 cents, at A$5.87.



-By Alex Wilson, Dow Jones Newswires; 61-3-9671-4313;
alex.wilson@dowjones.com



(END) Dow Jones Newswires

05-01-08 0234ET

Copyright (c) 2008 Dow Jones & Company, Inc.

http://www.metalprices.com/metalNews.asp?id=69479&svc=ODJ&type=1