ORBITE: Steady at the Helm
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Orbite Aluminae Inc.
TICKER: ORT:TSX; EORBF:OTXQX
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Orbite Aluminae Inc. is in the pre-commercialization phase of an innovative and clean technology that aims to become the new standard in alumina production due to its low processing costs and lack of toxic red mud residues linked to traditional processes. Its patented and … read more
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The information provided below is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
Expert Analysis
Philip Shen, ROTH Capital Partners (2/4/13) "Earlier this morning, Orbite Aluminae Inc. announced that it signed an exclusive agreement with Veolia Environmental Services to use red mud as a feedstock and produce alumina. Veolia, in our view, is a first-class partner, and we believe its integrated global footprint could drive meaningful demand for Orbite's technology worldwide; we reiterate our Buy rating."
Matt Gowing, Mackie Research Capital (2/4/13) "Orbite Aluminae Inc.'s high-purity alumina (HPA) plant will provide strong cash-flow generation once orders are attained. . .the recent milestone of first production of HPA from the plant, along with derisking of the overall technology, as seen from the insights gained at last week's site tour, strengthen the Orbite investment thesis."
Morning Coffee (1/23/13) "Investors cheered after Orbite Aluminae Inc. announced that it successfully produced its first tonne of high-purity alumina (HPA) during the last week of December 2012 and early January 2013 as part of the initial commissioning and testing activities at the company's commercial-scale HPA production plant in Cap-Chat, Quebec. . . .the company further highlighted that additional commissioning activities, and optimization of the purity towards 5N and greater, are expected to take up to two months to complete and are proceeding according to schedule."
The Metals Report Interview with Alex Knox (1/22/13) "A number of REE companies that are moving toward production are discussing ways of significantly reducing their extraction costs because they're in discussion with Orbite Aluminae Inc. Orbite Aluminae has developed a process by which a rock can be put into solution and its component elements extracted in a fashion that does not consume any acid. It instead consumes energy in order to make these transformations. This is a huge cost advantage. A couple of companies that I know of are seriously involved in discussions with Orbite to use this technology. These companies have signed nondisclosure agreements with Orbite and are of the feeling that the Orbite process used in whole or in part will be able to significantly reduce their capital costs and, hence, give them a strong competitive advantage over other companies.
"Also, Orbite claims that it has been able to extract very small quantities of extremely valuable elements like gallium and scandium from its ores that it is principally producing for aluminum, as well as the complete spectrum of REEs. All REE deposits tend to be a bit of a little treasure trove, and sometimes carry significant quantities of other valuable elements in either small, moderate or even large proportions, such as niobium, tantalum, zirconium, hafnium and beryllium. If the Orbite process is useful in extracting these other elements, you could imagine that the increased revenue would decrease the operating cost per pound of extracting the REEs and would be another significant economic advantage. At least in the preliminary stages, the Orbite process looks like it's going to be able to do this. It looks like the Orbite process may be a significant contributor to revenue." More >
Matt Gowing, Mackie Research Capital (1/22/13) "Orbite Aluminae Inc. has announced a plant commissioning update, indicating that it has successfully produced its first tonne of high purity alumina (HPA) during the last week of December and early January. Samples have been independently tested by EAG, confirming that an initial purity 'of greater than 4N [99.99%] was achieved' . . .we view the news as a positive event as it confirms that the company should be able to start up commercial operations at the start of Q2/13 (in-line with our forecast) and be in a position to deliver customer-grade products (4N product at the very least)."
GLTA