# ASQ - Australian Silica Quartz Group



## Lucky_Country (20 March 2008)

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


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## JTLP (20 March 2008)

*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 :


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## Lucky_Country (20 March 2008)

*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.


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## AJ_ (24 April 2008)

*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.


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## grace (24 April 2008)

*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!


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## grace (30 April 2008)

*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


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## pattyp (1 May 2008)

*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


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## grace (1 May 2008)

*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.


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## grace (1 May 2008)

*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.*


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## pattyp (1 May 2008)

*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


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## grace (1 May 2008)

*Re: BAU - Bauxite Australia*



pattyp said:


> Awesome, Thanks - Looks to have multi-bagger potential to me....
> 
> I got a diluted MCap at... 33m head + 6.5m ops = 40m'ish...?
> 
> ...




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.


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## pattyp (1 May 2008)

*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 ! ! !


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## pattyp (1 May 2008)

*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.


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## pattyp (1 May 2008)

*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.


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## grace (1 May 2008)

*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.....


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## pattyp (1 May 2008)

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.


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## pattyp (1 May 2008)

*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


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## pattyp (2 May 2008)

*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


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## pattyp (2 May 2008)

*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


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## pattyp (2 May 2008)

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


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## pattyp (2 May 2008)

*Who'll be our first bauxite billionaire?*
The Daily Reckoning, 8:41 AM Apr 7, 2008

China, as you know, has been using a lot of everything. China's economy grew at double digit rates in the last quarter. Aluminium is a key commodity for commercial and residential real estate activity. It's a lot like copper in that respect. When an economy expands, demand for aluminium increases.

To meet that demand, China has increased its production of aluminium, importing bauxite from Indonesia as well as mining its own. In the first three months of 2007, China increased its aluminium production by a whopping 40 per cent. China's ability to produce aluminium is expected to grow by 15 per cent this year, according to the Australian Bureau of Agricultural and Resource Economics (ABARE).

But there are reasons to doubt this figure.

Bauxite is cheap and plentiful. Energy is not. China and South Africa both have strained power grids. But more importantly, electric power generation in both countries comes from expensive coal.

Hydro-electric power is much more common in North America, Europe, and Latin America than it is in Asia and Africa. Africa does have some large hydro-electric dams, but they are on large rivers, and South Africa's power mostly comes from coal.

Coal prices in Newcastle, New South Wales have been rising in the last month as world demand grows and supply bottlenecks tighten. The rising cost of coal, not to mention the awful environmental side effects are beginning to add up for countries like China and South Africa. What it means – in practical terms – is that it's getting too expensive to make aluminium in countries that don't have cheap energy.

In a recent report, ABARE says: "The electricity intensive nature of aluminium production, and the fact that most electricity in China is generated from coal fired power stations, means that expansions to aluminium smelting capacity can, indirectly, have adverse environmental impacts.

"To address this issue, the Chinese Government has indicated its desire to limit the production and export of aluminium. In late 2006, the Chinese Government imposed regulations on the size, capital investment requirements and environmental standards of new smelters, and also increased the tax on exports of aluminium metal to 15 per cent (from 5 per cent)."

It's not a difficult conclusion to reach: increased power costs (and shortages) in China and South Africa will lead to lower aluminium production. There is still probably going to be a surplus this year. But the futures market is already pricing in increases later this year and early next year.

That would be a change from aluminium's recent performance. Of all the base metals it's been the big laggard. There was good reason for this, too. Bauxite is easy to mine and easy to find. Energy was cheap. Turning bauxite into alumina (refinement) and alumina into aluminium (smelting) was not a high-margin business.

But now that the energy part of the equation has changed, a shift is taking place in the global aluminium market. Aluminium production will move away from China and towards places where energy is cheaper. In fact, it's already happening.

Many countries in the oil-rich Persian Gulf are building aluminium smelters. Dubai is planning to build the world's largest aluminium smelter ever. It's a $US5 billion project with the aim of producing a smelter that can generate 700,000 tonnes per year. It is not alone.

Saudi Arabia has plans for a $US3.8 billion smelter. Oman has plans for a $US2.2 billion smelter. Qatar has plans too.

Saudi Arabia has also said it has plans for a $US7 billion "mine-to-metal" project that includes bauxite mining, refining and aluminium smelting. It calls this the "third pillar" of its oil and petrochemical strategy.

It's an attempt at economic diversification that does not include loaning billions of dollars to struggling American financial institutions. You can argue about whether or not it makes sense for the Gulf States to become aluminium producers. But you can't argue that they have the energy to do it. China and South Africa can't say the same.

What do the Gulf States lack? To make aluminium you need bauxite, electricity and the capital to build a smelter.

Capital? Check (the Aussie firm Worley Parsons got a $AU300 million contract to do work on the Saudi smelter). Electricity? Check (plenty of oil and gas, for now.) Bauxite? Hmmn.

Well there's plenty of that in Guinea and Australia, isn't there?

Rio Tinto is supremely placed to profit from all this, especially because of the Alcan acquisition. BHP Billiton... not so much.

But if we are right and the rising cost of energy forces a shift in global aluminium production away from China and toward the Middle East...what is the best way to profit from this?

Bauxite? Alcoa? Or infrastructure firms building smelters in the ME? Or all three?

The answer to that question can be found in what happened with Australia's iron ore business. For many years it was dominated by just a handful of companies, mostly BHP and Rio Tinto.

Then, a few visionary entrepreneurs saw the changes coming (that China would be a big customer for years). You know the rest of the story. Chinese, Japanese and Korean steel companies are inking deals with anyone who can produce iron ore, from Rio Tinto and BHP all the way down to much, much smaller producers.

One of the best performing stocks on the ASX last year was Murchison Metals, a small producer in the Mid-West (not the Pilbara). And Fortescue Metals, which hasn't actually produced any iron ore at all, did even better: "Major players such as Fortescue Metals Group (up 460 per cent in 2007), Murchison Metals (up 182 per cent) and Mount Gibson Mining (up 215 per cent) are expected to benefit from higher contract iron ore prices to be negotiated later this year," according to the Herald Sun.

The path to Australia's first big bauxite fortune will look a lot like the path Andrew Forrest trod in iron ore. Forrest – who according to Forbes magazine is Australia's richest man – realised he didn't need to compete with BHP and Rio Tinto. Just becoming Australia's third biggest producer of iron ore would be enough to make him a very rich man.

He was right. Incredibly, Forrest's company Fortescue Metals has yet to ship any actual ore to China. But the inherent sense of the business proposition – and rising iron ore prices – have propelled the stock to amazing heights anyway.

Incidentally, while Warren Buffett took the crown as the world's richest man this year (net worth of $US72 billion), India had four men in the top ten. Russia had 87 billionaires on the Forbes list. Russia's richest man, Oleg Deripaska, is the world's ninth richest. He made his money in Russian aluminium, not in Russian oil.

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


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## Joe Blow (2 May 2008)

Patty could you please try and post some information or analysis that's more specific to BAU?

These articles, although related, don't tell us much about BAU.

Also, please be aware of our policy on posting copyrighted material. You may only post a small portion of any given article and you *must* link to the original source.


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## pattyp (2 May 2008)

Understodd Joe Blow... 

I started with all the facts/projections on BAU.. Its in the thread above the last few posts...

Thought other analysts here would like to see some fundamentals on Bauxite and Alumina... Its a logical progression for research... Or I guess not?

Anyway, I will stop now...

I added the article link... I had every intention, as I had been doing so previous... Just missed my copy/paste on that one.

Cheers.


----------



## Joe Blow (2 May 2008)

pattyp said:


> Thought other analysts here would like to see some fundamentals on Bauxite and Alumina... Its a logical progression for research...




Perhaps you should consider starting a thread on Bauxite and Alumina in the 'Commodities' forum. It would probably be more useful in there as it would be a broader discussion.  You could call it 'Bauxite and Alumina fundamentals'.

Just a thought.


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## pattyp (2 May 2008)

LoL - Good Idea...

But I think I've done enough damage now... I'll keep to myself for a few days 

Have a good weekend


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## Lucky_Country (3 May 2008)

Well the last year has been very intersesting in the Alumina industry.
BHP too spend $2 billion on Worsley, South Africa power crisis, Alumina cheif putting his veiws to the market, Bauxite up 30% this year alone, RIO taking over Alcan, Alcoa/Chinalco taking a stake in RIO for the breakup of their alumina assets.
BAU in a prime position and must be on alot of peoples radar.


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## pattyp (4 May 2008)

MC 70/03002 - One of BAUs Granted Licenses (according to Qtrly) is included in these reports...


http://www.mpr.wa.gov.au/wamex/item_details.asp?m_num=2380&sub_num=1

Extract:

"Substantial exploration for bauxite estimated "A total of about 137,230,000
tonnes of bauxite averaging 28.9% extractable alumina and 2.25% soda loss
... for areas held under current agreements {minerals to owner ground} or
mining tenements. An additional 30,732,000 tonnes...averaging 28.9%
extractable alumina and 2.22% soda loss is calculated for areas not
currently held."
No further work after 1981.
Aerial monochrome photography (1:24000 scale). "


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## grace (4 May 2008)

pattyp said:


> MC 70/03002 - One of BAUs Granted Licenses (according to Qtrly) is included in these reports...
> 
> 
> http://www.mpr.wa.gov.au/wamex/item_details.asp?m_num=2380&sub_num=1
> ...




Good work pattyp.....I was trying to search wamex but didn't manage to find this.  Well looks like we have plenty of Bauxite to mine.  Grade is write on the money as WA bauxite is normally 30%  (Qld and NT can be of grades up to 50%).  This is all good!

By the way, the bauxite from WA attracts a premium price because it does not have to be heated to as high temperatures (energy savings) as Bauxite from other parts of the world.


----------



## pattyp (4 May 2008)

Thanks Grace 

I've been trying to find other Pure Bauxite Play BFS docs, and OPEX/CAPEX breakdowns...

Its hard because most Bauxite is in the hands of Established Miners, or diversified giants (BHP/RIO)...

I found one in the Republic of Guinea... They are just building a Bauxite industry there...

I'll find some more, but will take a couple more days.

Check this out - Its a very similar operation by HELALIN S.A.
*
CAPEX is USD80m for pure dig/ship operation, 3mt/pa... Move it to Aus and its probably more like AUD120-AUD160m CAPEX.... Approx. what I est. before *

http://helalinsa.com/poroject information.htm
http://helalinsa.com/Main Technical and Financial Features & Advantages4.htm

A few key extracts:

"Project Owner:  HELALIN S.A., a company incorporated under the laws of Republic of Guinea and established to develop the bauxite and other mineral resources of a 2,003 square km area surrounded by Kindia, Fria and Telemele cities the concession of which for exploration & exploitation has been granted by the Ministry of Mines & Geology of Guinea to HELALIN S. A.  "


"Bauxite Mineralogy: Gibbsite bauxite ore suitable to be treated to alumina through Bayer Process;

Mine Capacity: 3,000,000 tpy bauxite in the first Phase, and 7,000,000 tpy in the second phase

Plant Capacity: 1,200,000 tons Smelter Grade Alumina (SGA);"


"Anticipated Capital Investment:

· Phase 1: *US$ 10,000,000 for exploration* works and conducting a Bankable Feasibility Study on development of a bauxite mining operation with an annual capacity of 3,000,000 to 7,000,000 tpy.

· Phase 2: *US$ 70,000,000 for developing a bauxite mining operation (Bridge Project) with an annual capacity of 3,000,000 tpy*, construction of a 30-40 km transportation mean to connect mine to Friguia railway, improving required loading and unloading equipment, infrastructure and port facilities for exporting bauxite."


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## pattyp (5 May 2008)

Well, finally got to the bottom of this Bauxite Price/Cost Refinery, Smelter…Etc…

I'm sure most who have attempted to research this subject have been frustrated by the LACK of specific data available…

Anyway, I've got a pretty good perspective now….

Bauxite Price is all over the shop - Ranges from USD20 - USD250…. The price depends on the grade, level of processing, contract length, place on earth… Finding a Spot Price for it is impossible…

Costs/OPEX are very low for Bauxite mining, Ranges from USD5-USD35 p/ton

CAPEX will come in at 130m to set up the site and buy the equipment.

So lets run the BAU numbers based on the new knowledge of the Bauxite market and the recent quarterly report.

------------------------------------------------
Basic/Dodgy Analysis
** Completely Imaginary - BAU Doesn’t Even have a JORC Resource **

START-UP
2mt/pa * 50p/ton = 100,000,000 revenue /pa*
2mt/pa * (50p/ton - 35cost/ton) = 30,000,000 profit /pa

Forward PE of 8 * 100m Revenue = 800m Mcap

800m Mcap / 161m Shares = $4.96 p/share (11-bagger)
30m Profit / 161m Shares = 18c EPS


RAMP-UP
4mt/pa * 50p/ton = 200,000,000 revenue /pa*
4mt/pa * (50p/ton - 35cost/ton) = 60,000,000 profit /pa

Forward PE of 8 * 200m Revenue = 1,600m Mcap

800m Mcap / 161m Shares = $9.93 p/share (23-bagger)
60m Profit / 161m Shares = 37c EPS
------------------------------------------------

------------------------------------------------
Theoretical DCF - Fair Value 8-yr Projection
** Completely Imaginary - BAU Doesn’t Even have a JOCR Resource **

30,000,000 ton, shippable Ore
Resource Value of 1.5 Billion

2,000,000 t/pa ramping up-to 6,000,000 over 8yrs

Bauxite Price Per Ton 50p/ton, peak 70p/ton, taper 35p/ton

Bauxite Cost Pet Ton 29-35p/ton Range.

150,000,000 CAPEX to start the project, 10,000,000 bi-annually after first
40% Equity, 60% Debt

Debt Paid off over the 8yrs.

Production For 8yrs
Fair Value = 417,700,000 MCap
Price Per Share = 259c
Avg EPS = 30c
------------------------------------------------

I'll build a DCF using a Alumina Refinery over the next day or so…

*THIS IS A COMPLETE GUESTIMATE - NOT REAL, IMAGINARY ! ! !

I'M PROBABLY WAY OFF ! ! !*

Pat


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## grace (5 May 2008)

Apart from the Pacminex/Hancock drilling (North Darling Range), the following is also worthy of note by Vam Ltd which had also completed a reserve estimation (non jorc) with average grades of 34%

This is from the last quarterly...



> The tenement E70/3312, in the Manjimup area of the South Darling Range, covers parts of areas which were previously explored for bauxite by Vam Ltd from 1969 to 1973. *In 1970, Vam Ltd completed a resource estimation which had average grades of 34% available alumina*.




Can anyone get hold of this sought of information on the non-jorc resource?


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## pattyp (5 May 2008)

Grace,

This is as close as i can get... Vam Ltd, Many tenements in S.Darling/Manjimup area. But NOT the specific one mentioned in the BAU Qtrly. Possible that there has been some re-zoning since the reports were completed.

Report estimates another 25mt @ 34%.

Cheers,
Pat

http://www.mpr.wa.gov.au/wamex/item_details.asp?m_num=4226&sub_num=0
http://www.mpr.wa.gov.au/wamex/item_details.asp?m_num=43&sub_num=0

"Exploration for residual Tertiary/Quaternary lateritic bauxite developed   
on Archaean granitic and gneissic basement. Scout drilling along           
forrestry tracks and areas selected visually on the ground and from        
monochromatic aerial photographs disclosed a wide variation in ore         
thickness and grade. 2368 holes for 6891 metres were drilled to an average 
*depth of 2.9 metres leading to an estimation of 25.5 million tons of       
bauxite of an average grade of 34% available alumina*.                      
Note: No formal report submitted."


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## pattyp (7 May 2008)

Oh no!!!! Jim Cramer is getting interested in Bauxite/Aluminium...

Maybe I better run for the hills - LMAO ! ! !


http://maddmoney.blogspot.com/2008/05/cramer-changes-tune-on-alcoa.html

"With steel prices off the charts many companies are switching over to cheaper alternatives like aluminum."

"He said China has worked through its excess aluminum supplies and is now back in the market buying as a buyer."


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## Lucky_Country (11 May 2008)

Well BAU has a massive potential but is still widely unknown to the every day person.
What I would like too see is BAU running some publicity in the press just like Twiggy did at the start with FMG he just got his face in the press and got the companies name on everyones lips.
BAU will be a company everyone will have heard about in a few years but the sooner the better.


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## pattyp (11 May 2008)

I'd rather they keep it quiet until they have their own resource estimate...

Gives me time to accumulate and allows for the Aluminium bull to move into the next gear.

I'm SUPER confident that they have loads of Bauxite and can dig 'n' ship on the cheap...

Very exciting co. to be in!

My estimates, with 50% Risk factored into the price, suggests BAU should/could be trading at around $1 per share.

I personally think we will be 1buc by yr end... easily.

Pat


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## Broadside (11 May 2008)

It's bemusing this little stock attracts more interest on the ASF forum than UMC, which has a JV signed with Norsk Hydro to develop bauxite in the Mitchell Plateau.  I am bullish bauxite but think it's best to cover all bases, hence I hold both stocks.


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## pattyp (11 May 2008)

I can answer that from my Point-of-View Broadside...

1) United Minerals is not a Bauxite Pure Play (Really it’s an IO corp)
2) United Minerals holds only 25% of the Bauxite Deal
3) Their Bauxite resource, as far as I researched (Not too far to be honest), is not as well defined as the historical BAU tenements (Which r also in a good area).
4) UMC is valued at 200m undiluted MCap. Bau is approx. 80m diluted.
5) My DCF fair Value assessment of UMC, offset by risks, comes in at approx 240m MCap... So UMC is fully valued at this point in time (Very possible future value depending on developments).
6) My DCF fair value on BAU, offset by risks, comes in at approx. 200m Mcap diluted, so there is much upside from the current valuation of 80m diluted.

I’m not saying that UMC is no good - Just from my P-o-v BAU has more upside and potential in regard to Bauxite/Aluminium.

I am prepared to be corrected on these points - I honestly havent gone beyond this preliminary assessment because I didn’t see it being worth my time.

Pat


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## Lucky_Country (11 May 2008)

Well UMCs Mitchell Plateau tennaments may take years too develop whereas BAU and its Darling Ranges is set too go with infrastrucre nearby !
BAU may get into production far quicker than UMC and the capex of the darling ranges will be much lower imo.


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## grace (11 May 2008)

When is the scoping study due?  That should be a very interesting report.

Here is a recent chart.  The rise is nice and steady this time and looking to approach all time highs this week.


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## pattyp (11 May 2008)

People on HC claim 2-3-weeks for scoping study... I haven't double checked their time line.

We are also due to hear some updates on the April trips to China...

I STRONGLY recommend anyone who is even remotely interested in BAU read the recent Qtrly... That’s what sold me!

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

Pat


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## Lucky_Country (12 May 2008)

Strong start too the week looks like a definate push too get a foothold in BAU.
Tightly held and not many willing sellers.


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## Broadside (12 May 2008)

pattyp said:


> I can answer that from my Point-of-View Broadside...
> 
> 1) United Minerals is not a Bauxite Pure Play (Really it’s an IO corp)
> 2) United Minerals holds only 25% of the Bauxite Deal
> ...




Thanks Pat I appreciate your response and accept most of your points.  The 25% is a two edged sword, a refinery is a major capital investment so having a big brother on board is a plus for me.  I would dispute UMC is fully valued on the IO side but it's not appropriate for me to discuss that on this thread, and I accept the fact that it's not a pure bauxite play is a minus for some investors.  I'd expect a spin off down the track for this reason.

Great to see BAU getting some real interest the past few days.


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## pattyp (13 May 2008)

Some great trading today - very exciting stock 

http://www.platts.com/Metals/News/8726170.xml?src=Metalsrssheadlines1
*
Power, bauxite shortage to drive aluminium, alumina prices higher*

"We expect the aluminium market to be in deficit in 2008, moving into
deeper deficits in 2009 and 2010. Supply surpluses loom further out, but
inventories will remain low relative to history," Citigroup said, adding that
the main drivers of the deficit were supply curtailments induced by high power
costs and shortages, and continued robust demand growth (8%/year).
     It said this outlook would support prices above $2/lb for the next five
years. "However, in the short term some weakness is expected following a
reversal of recent dramatic inflow of investment funds," it said.

     The bank noted that a bauxite shortage was looming. "Bauxite supply
growth is expected to slow. The third party traded market is increasing in
importance, and access to high quality bauxite will be a key source of
competitive advantage. The alumina market has seen some relief from spot
rising prices recently, but over supply is expected until 2010," the bank
said, adding that in subsequent years however a tight market loomed.


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## Lucky_Country (13 May 2008)

Stars aligning for BAU with articles like this tommorow should be a strong day.
Where it ends Im not too sure but the run may even accelerate with good news.


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## pattyp (13 May 2008)

I think at share price of $1 the Market Cap would be fairly valued based on the known vs. risk...

We'll have to see how optimistic the market is, but I think we will see 1buc sooner rather then later...

Add some developments... China deal, Refinery JV, official resource estimates.... and BANG!!!

Thats just my opinion... Its a guess, no promises from me  

Pat


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## Lucky_Country (13 May 2008)

Agree with the $1 sooner than later !
A few good news flows and BAU will be heading into blue sky a bit of media attention too make it more widely known and it will be hot property.


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## pattyp (16 May 2008)

Ooooooww!

http://www.bauxiteresources.com.au/index.htm

Nice new website... Must be getting their act together for some serious business!

Good to see 

Technically speaking - Depth looks good today, maybe a bottom...?

Pat


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## qq830821 (19 May 2008)

got 1000 BAUO at 0.3 speculating the news on China's visit. but on top of it, still think its a good company, sustained at 49c


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## grace (19 May 2008)

I just received a newsletter about the China visit with lots of pictures, and some more company news.  Tried to link it but failed (was a very large file).  

Should be on their website I imagine.  Worth a read, and/or sign up for newsletters if you are a holder or potential holder.  They must have grabbed my email address when I was hunting down the top 20 list some weeks ago...


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## qq830821 (20 May 2008)

read through the whole thread this afternoon, realise that we have been concentrate on the demande of the bauxite, the story sounds fancy  however, how abou the supply side. i did some research re the supple side. most of the research paper i read are in chinaese. so bear with me if my infor is differ from what u have
1. with chin'a current reserve, there will be more than enought to use until year 2030
2 the refinary process is kind of labour intensive... how will this affect bau's profitability 
3 to chin'a definiation, to be qualified as BAU must have >40% content and A/S≥2.5
3 the resources the company current have are they economic demonstrated resources or subeconomic demonstrated resources


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## grace (20 May 2008)

I was sent today by Bauxite Resources some research by Capital Investment Partners.  Interesting read.  I again can not upload it.  Not sure why not.  This research was dated 9/5/08.  I have saved to my hard drive.  It is not on BAU's website, nor Capital Investment.  Can anyone give me a hint.  I upload charts fine.  Just having trouble with other documents.


----------



## grace (20 May 2008)

grace said:


> I was sent today by Bauxite Resources some research by Capital Investment Partners.  Interesting read.  I again can not upload it.  Not sure why not.  This research was dated 9/5/08.  I have saved to my hard drive.  It is not on BAU's website, nor Capital Investment.  Can anyone give me a hint.  I upload charts fine.  Just having trouble with other documents.





I found a link for an extract of the whole report though, so here it is. 

http://www.datafilehost.com/download-0f2cdcc6.html


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## pattyp (21 May 2008)

qq830821 said:


> read through the whole thread this afternoon, realise that we have been concentrate on the demande of the bauxite, the story sounds fancy  however, how abou the supply side. i did some research re the supple side. most of the research paper i read are in chinaese. so bear with me if my infor is differ from what u have
> 1. with chin'a current reserve, there will be more than enought to use until year 2030
> 2 the refinary process is kind of labour intensive... how will this affect bau's profitability
> 3 to chin'a definiation, to be qualified as BAU must have >40% content and A/S≥2.5
> 3 the resources the company current have are they economic demonstrated resources or subeconomic demonstrated resources





Hi qq830821,

Im travelling at present and cant give an adequate response to your question... Will come back to this next week!

"the resources the company current have are they economic "

This is an extremely subjective question - economic depends on location, depth in ground, transport, and processing facilities. If you check out some of the info on Darling Ranges bauxite (BAU website good place to start then look to the Other D.Ranges Bauxite miners) ... Its avg. Alumina levels are 30% but they have a better make up which allows for processing to be less energy intensive. Bau is in good location and has (Based on other players mines in the area) top quality Bauxite... 

China has a lot of Bauxite as you point out - problem they have is energy! They dont have enough to create the aluminium... This is one of the key points that are creating a problem in the supply/demand equation.

One last point - There is enough Iron Ore and Coal to last a long time also... Problem is getting it and processing it in alignment to demand growth!

Anyway, keep researching and i'll get you some data/extracts when I get home!

Not advice, just my opinion!

Pat


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## qq830821 (21 May 2008)

Hi Guys
i have attached a PEER analysis for BAU have a look if you are interested


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## qq830821 (21 May 2008)

pattyp said:


> Hi qq830821,
> 
> Im travelling at present and cant give an adequate response to your question... Will come back to this next week!
> 
> ...



Hi Pat
thx for the reply. i reckon the porblem is energy as well however, by saving that, there are many other countries that can produce this resources with lots of electricity, as far as i can remember these countries have low cost labours as well, compare to those countries. whats australian's comparative advantage? we have relatively high cost of labour high cost of energy and high infrastructure cost. any cost advantages from processing BAU will probably be wiped out by the higher labour, infrastructure and energy cost?


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## Broadside (21 May 2008)

qq830821 said:


> Hi Guys
> i have attached a PEER analysis for BAU have a look if you are interested




Pointless posting a peer analysis but maybe that was your point....I am sure, however, everyone is well aware it is early days and is a speculative investment.


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## qq830821 (22 May 2008)

Hi Guys...
just have sth in my mind and cant figure it out..need your help
1 Assmue i buy BAUO for 30c for say 10000 options....as its a US option, we can execute the BAUO at anytime and buy the BAU shares @ 30c per share. we can them immedicately sell the 10000 BAU @ 50c making a riskless profit of (50c-30c)*10000=$2000? well, thats just sounds too good....but thats at least how i understand...anybody?


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## Broadside (22 May 2008)

qq830821 said:


> Hi Guys...
> just have sth in my mind and cant figure it out..need your help
> 1 Assmue i buy BAUO for 30c for say 10000 options....as its a US option, we can execute the BAUO at anytime and buy the BAU shares @ 30c per share. we can them immedicately sell the 10000 BAU @ 50c making a riskless profit of (50c-30c)*10000=$2000? well, thats just sounds too good....but thats at least how i understand...anybody?




qq that's assuming that conversion from options to heads is instantaneous, it actually takes a few days...so not quite an arbitrage...the discount on the options is certainly a good way to get in cheap though.


----------



## J.B.Nimble (22 May 2008)

Broadside said:


> ...the discount on the options is certainly a good way to get in cheap though.




I take it this is a hypothetical question qq? With BAUO trading at 31.5 and 20 cent exercise, it doesn't sound like much of a discount against the heads which are starting to trade sideways in 50 to 55 range


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## qq830821 (23 May 2008)

J.B.Nimble said:


> I take it this is a hypothetical question qq? With BAUO trading at 31.5 and 20 cent exercise, it doesn't sound like much of a discount against the heads which are starting to trade sideways in 50 to 55 range




Hi Nimble, thax for the reply. however,you got me all confused!!!!!
i thought if i buy BAUO @ say 31c a option... at the maturity date, i can sell it @ the market value?? where does the 20c come from? and if i decide to turn the options into ordinary share.what are the procedures ?? anywhere on the interest?

thx


----------



## J.B.Nimble (24 May 2008)

qq830821 said:


> Hi Nimble, thax for the reply. however,you got me all confused!!!!!
> i thought if i buy BAUO @ say 31c a option... at the maturity date, i can sell it @ the market value?? where does the 20c come from? and if i decide to turn the options into ordinary share.what are the procedures ?? anywhere on the interest?
> 
> thx




qq,

ASX website is as good as anywhere to get a grasp of the basic concepts. Have a good look at expiry, exercise price, premium, leverage, and time decay... and don't worry - no one is born knowing this stuff...  
http://www.asx.com.au/investor/options/getting_started/what_are_etos.htm


----------



## pattyp (24 May 2008)

qq830821 said:


> Hi Pat
> thx for the reply. i reckon the porblem is energy as well however, by saving that, there are many other countries that can produce this resources with lots of electricity, as far as i can remember these countries have low cost labours as well, compare to those countries. whats australian's comparative advantage? we have relatively high cost of labour high cost of energy and high infrastructure cost. any cost advantages from processing BAU will probably be wiped out by the higher labour, infrastructure and energy cost?





Interesting points you make qq830821.

"whats australian's comparative advantage? we have relatively high cost of labour high cost of energy and high infrastructure cost"

This statement stands true for every aspect of Australian business... We are a high cost country... Therefore we stop mining...? Probably not...?

Quick reference (not best but will do as IM being quick):
http://www.indexmundi.com/en/commod..._and_alumina/bauxite_and_alumina_table11.html

Turns out we are the biggest Bauxite producer in the world... And a big percentage of that comes from Darling Ranges... Is it hard to believe that the bauxite miners in Aus. do so and make a profit...?

Mining Bauxite is generally VERY cheap - It sits 3m under the surface - We can get it out, ship it, and make a profit... Very little doubt of that. 

Building a smelter??? Now that is expensive... And do we want to invest that much? Depends on how many yrs worth of Bauxite we find.

If you feel confident in taking on sovereign risk, and have the connections/brokers you can likely invest in overseas Bauxite miners that would have cheaper OPEX. So you are correct.

I guess our (BAU) competitive advantage is, we potentially have a lot of Bauxite, we know how to get it and ship it, we have excellent infrastructure in the area, the Bauxite is good quality (lower grade then some other locations in the world, but better chemistry) and Asia isn't very far away.

Oh.... One more thing, the key BAU advantage, from my Point-of-view as an investor, is that this business is undervalued at this price even if they only find 30mil ton and ship between 2-5mt/pa. I have come to this conclusion by creating several DCFs accounting for several OPEX, CAPEX, and Revenue scenarios.

There are always risks - This is just my opinion - I'm not an expert.

Cheers,
Pat


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## mrkmr (4 June 2008)

Breakout today, very tightly held.  Only junior bauxite play on ASX with some very good tenements pending.  Anyone got more information?


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## pattyp (4 June 2008)

Are you asking for data on BAU generally...? Or on the Rally we got today...?

Here is a chart, thought I'd throw it in for good measure LoL

Pat


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## Lucky_Country (4 June 2008)

Gees I like that chart !
Looks like BAU heading for $1 and in the near term has the hallmarks of FMG written all over it.


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## kam_star (13 June 2008)

BAU has once again been compared to FMG. This is the second report from tow different reporters. Looks very good to me. Great future ahead. 
Have a read and enjoy

http://www.dailyreckoning.com.au/third-in-iron-ore -enough-to-make-a-man-rich/2008/03/19/


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## qq830821 (13 June 2008)

kam_star said:


> BAU has once again been compared to FMG. This is the second report from tow different reporters. Looks very good to me. Great future ahead.
> Have a read and enjoy
> 
> http://www.dailyreckoning.com.au/third-in-iron-ore -enough-to-make-a-man-rich/2008/03/19/




sadly, it hasnt been reflected on the share price. think 0.5 is a strong support point ,safer to buy around that price for new investors


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## kam_star (13 June 2008)

Here is the other report
http://www.theaustralian.news.com.au/story/0,25197,22820030-18261,00.html

The SP is very strong at the moment and being tightly held by loyal holders. I agree 50 cents is a strong support but will be way above that once news starts to flow which will be very soon.


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## qq830821 (20 June 2008)

a horrible drop today, still cant quite figure out the reason, sure its probably caused by the director's sale of shares and options but why? havent heard any news from BAu website, is there any bad news that i dont know? but i believe the fundmental hasnt changed so guess its a good opportunity to top up my portfolio, but should i do it now or just wait until i can see a clear direction of the sp?


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## kam_star (24 June 2008)

Fundamentals have not changed, I think the drop is due to the release of shares from escrow and is only creating a chance for us loyal holders to top up on ver very cheap prices. Newsletter will be out around 30th June for an update on the quarter. So my suggestion is do not delay if you wanna get in. Once news starts flowing for this I think its gonna be hard to get in at these prices.


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## loopy_louie (26 June 2008)

Hello, iam new to these forums, I believe this stock has great potential, it has now surged 2 days in a row, when the news comes out on 30th june for this quarter i think its surge even more. A buy on the sp under 50c i believe is a good buy. Bauxite has a great future 

Any other thoughts much uppreciated...!  

I disclose this stock......


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## kam_star (1 July 2008)

Hi Louie,

Welcome to BAU, I think you have made a good choice. All we need is the news to start flowing for this one and I agree that it would be hard to get this stock under 50c. They have the ability with 3 Tenements granted to return 200-300MT of bauxite and just imagine how much it can return with all tenements approved. Plus Proven Management, close to infrastructer and ports, chinese in demand for Bauxite. This Company has all tbe boxed ticked. Now we just need news. According to annoucements, drilling is starting this quarter aswell. Could be a good few months ahead.


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## loopy_louie (8 July 2008)

Hello People,

A market update was just released 2 hours ago by bauxite Resources. A very positive outlook, with china still in high demand for bauxite and ulumina.

Have a look at the link

http://imagesignal.comsec.com.au/asxdata/20080708/pdf/00858612.pdf

Very promising time for this little beauty.....

I disclose holding


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## Agentm (9 July 2008)

i have added this one recently, its very connected to china i believe in that they see the market for them very much from that region..


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## loopy_louie (11 July 2008)

Aluminium price has surged over night, and chinese miners have slowed down with the production. China demand however is still at a high, i think its time for australian small miners like bau to start exports huge amounts to china. 

Bau has excellent contacts with chinese buyers.

Any thoughts or comments??


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## Romeo75 (11 July 2008)

From the little I know, aren't they a long way from actual production?  I think they have 2 approved tenement applications with a dozen or so pending ones.  How long do you estimate before they can actually export?


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## loopy_louie (11 July 2008)

Bauxite has applied for 44 tenements in 3 project areas, 38 are located in the darling range and 6 tenements in the kimberley range

3 of these licences have been granted in the darling range

And to what i have heard they have applied for an additional 13 licences in the last 2 months in the darling range


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## Romeo75 (11 July 2008)

So how long do you think before they at least start drilling on the approved tenements?  I'm trying to figure out how long it will be before this company's SP will hit $1+


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## loopy_louie (11 July 2008)

I dont know exactly when production will commence, however  they predict the stage one drilling traget is greater than 30mt...

Bau tenements are positioned well with close infrastructure like railway lines and ports which will save alot of money on transporting after they hit JACKPOT!!! 

Iam predicting the SP will hit the $1 within a year!!  Lets hope iam right

I disclose holding


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## Agentm (16 July 2008)

***Bauxite Resources applies for 13 exploration licenses in the Darling Ranges 

In the March issue we looked at how rising energy prices would affect the global aluminium industry. Our conclusion, if you’re not interested in reading the whole story, is that global aluminium production would migrate toward companies (or countries) with abundant energy resources. But while these countries (most in the Middle East) have energy in abundance, they don’t have bauxite. 

You need bauxite to produce alumina. And you need alumina to make aluminium. Aluminium itself is one of the metals that stands to benefit from urbanisation in China and rising standards of living in the developing world. You find it in cars, airplanes, and reams of consumer goods. Chinese consumption of aluminium has quadrupled in recent years and now accounts for 22% of world consumption.

The race for high-quality bauxite deposits close to existing infrastructure is on. This week, Bauxite Resources Ltd. (ASX:BAU) announced it had applied for 13 more exploration licenses in the Darling Range in WA in the last two months. The nice thing about exploring for bauxite in the Darling Range is that you know it’s probably there. The region already provides nearly 17.5% of the world’s alumina.

Bauxite now has 38 exploration licenses in the Darling Ranges. A lot of drilling lies ahead to turn that prospective area of more than 7,500 square kilometres into a reserve figure shareholders can wrap their heads around. Right now, Bauxite’s initial exploring hopes to produce a bauxite resource of 30 million tonnes, from which it could produce 2 million tonnes per year of direct shipping ore (DSO).

DSO ore is ore that is already high grade and does not require any beneficiation before being exported. In the iron ore industry, high-grade hematite ores with 63% or more iron content would be an example. Magnetite, on the other hand, doesn’t generally qualify as DSO.

Practically speaking, Bauxite’s operating costs will go down because of its high grade ore. Also, the bauxite deposits in the Darling Ranges can usually be developed by stripping 3-10 metres of overage. They don’t require a lot of expensive drilling to locate, or a lot of expensive blasting and open pit mining to produce.

Even further down the track, Bauxite Resources has said it would consider building an alumina refinery in WA with the help of a joint-venture partner. But in the meantime, the company continues to scoop up exploration licenses in the Darling Range.

We’re not suggesting that bauxite is undergoing the same structural revaluation as iron ore did beginning in 2004. But with supply disruptions in Indonesia and China and gradually rising aluminium prices, the case for accumulating a large Australian bauxite resource is getting stronger day by day.


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## ROE (18 July 2008)

got in at 39 cents and went south ever since 
come one drop it back to 20 cents and I'm in for more


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## Lucky_Country (12 August 2008)

Showing good stability and a great announcement of the new MD.
Rather in than out on BAU just takes time and will deliver.


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## Lucky_Country (19 August 2008)

BAU seems to have found its base for the next leg up.
I for one havent forgotten the potential this company holds those brave enough to jump in will profit imo.


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## loopy_louie (19 August 2008)

Hi Aston Villa Fan,

I purchased this one 3 weeks ago, and i just cant wait to see what it does from now till the end of the year....

It has definately found a base at around 25c to 30c mark, for the next run to see it reach close to the $1 mark.....

Come on you good thing...


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## loopy_louie (2 September 2008)

Capital Investment Partners have have published BAU in their mining book.

Great analysis, as expected

HAVE A READ......  ENJOY......

http://www.bauxiteresources.com.au/downloads/CapitalPartBAUAug08Rep.pdf


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## Lucky_Country (2 September 2008)

Hopefully this may start the flow of more good news on the BAU front and see the sp back up where it belongs.
Once it starts to run BAU is hard to stop and with futher news may at least test previous highs.
Medium term BAU is a gem of a company and will enjoy the ride.


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## Lucky_Country (3 November 2008)

Great announcement today people !
Offtake agreement for all of BAUs DSO.
Funding agreed, equity stake, production in 12 months and also partners wishing to help proceed Stage 2 Alumina refinery.
Go you good thing !


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## qq830821 (4 November 2008)

Lucky_Country said:


> Great announcement today people !
> Offtake agreement for all of BAUs DSO.
> Funding agreed, equity stake, production in 12 months and also partners wishing to help proceed Stage 2 Alumina refinery.
> Go you good thing !




Hi Ijh
indeed a great news
i did a quick cal early today and came up with a price of 1.72
Revenue=2.8m*50AUD(price range between USD$50-$75 in July, take into account resources price drop which should be offset by weaken Australian dollar. To be very conservative, I use 50 AUD a ton
Revenue=140M
Cost assume 50%
EBIT:=70M p.a
Fully diluted share =160m
EPS=70/160=0.43
Assuming reserve =30mt 2.8m p.a. =approx 10 yr mine life
Assume a very low PE due to mine life
Eg pe=4
Share price=1.72
the bau price i used was back in July any idea where i can get an updated price?
also 
i reckon the key to this share is
1. when can they get the licences?
2. Will the chinese counterparty break the contract if china gets stuck with global slow down.(did read somewhere that this is actually happening to some companies)
but its definitely worth the risk...
good luck to all BAU long term investors


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## Lucky_Country (4 November 2008)

Well the Chinese knows the world economey is slowing and yet they still sign up with BAU !!!!

Great signs for this company in a years time when they start the exporting the global economey will be on the mend and BAU will bwe well placed to ride a mommentum of Chinese growth.

The key is the quality of the product that BAU can offer and the location.
I look forward too drilling and reserve announcements this could be big !!!

BAU is has got what the Chinese want just such great potential with this company.


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## qq830821 (5 November 2008)

Lucky_Country said:


> Well the Chinese knows the world economey is slowing and yet they still sign up with BAU !!!!
> 
> Great signs for this company in a years time when they start the exporting the global economey will be on the mend and BAU will bwe well placed to ride a mommentum of Chinese growth.
> 
> ...




Hi is it a contract or just a MOU if its just MOU then its no use...not legally bound? 
but its always glad to find someone who is interested in you and would provide $ for drilling and etc..
BAU will be sky rocking when 
1. sign the official contract with chinese counterparty
2. get the licences.
licences is the key
PS. can any company in oz export resources without JORC?


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## kam_star (6 November 2008)

http://www.proactiveinvestors.com.a...s-snags-chinese-funding-and-offtake-0360.html

Check this out. News is getting out there. Once people know about this little hidden gem, its off we go.


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## Lucky_Country (13 November 2008)

kam_star said:


> http://www.proactiveinvestors.com.a...s-snags-chinese-funding-and-offtake-0360.html
> 
> Check this out. News is getting out there. Once people know about this little hidden gem, its off we go.




Great article just shows Im not alone in thinking about the potential of BAU.
The next 12 months should be really excitiong on for the company and the next 1 month could be the deal clincher with the Chinese and Government for the applied tenaments


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## Lucky_Country (27 December 2008)

Anyone still tracking BAU.

Seems to be progressing very well in this market even tho it is not reflected in the shareprice.

Offtakes and MOUs with the Chinese and a fast track to production.

Could suprise alot of people this company could.


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## ptony1948 (7 January 2009)

Hello.  Up front I'll tell you that I own shares in BAU.

In research I've come up with the following.
Not a lot of shares.  Just over 100 mill.
A lot of tenements, a lot of prospective ground.
History of exploration of these tenements infers a large resource.
Up around $7 mill in the bank.
Sensible management of costs. eg get Shandong to pay for exploration.  Don't get licences issued on tenements immediately as starts to cost once licence issued.  
2/3 of shares owned by top 20 holders.
Access to 3 ports etc makes it easy to move bauxite overseas.
Shipping rates overseas have decreased markedly.
Have 2 parties interested in the bauxite.  One is Shandong which is a govt organisation of China.
From memory 2 of the directors hold about 35 million shares.  
The 6 month low for this stock is 9.5cents which was a mere blip on the graph. ie went down and jumped straight back up to around 18/19cents.
Since I've been watching and bought the sell volumes on offer have been very low.
Volume wise there is usually 2 to 3 times as much volume buy as volume sell. 
imo these last 2 facts mean if demand picks up then price has potential to jump.
What I don't understand is with all of the above why isn't the demand a lot higher?
I'd be interested in what other people think about my research, what things I've missed (good and bad) that have a bearing on the share price and how you see the price being affected in the next 6 months.  
I look forward to your input.


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## grace (7 January 2009)

grace said:


> Good work pattyp.....I was trying to search wamex but didn't manage to find this.  Well looks like we have plenty of Bauxite to mine.  Grade is write on the money as WA bauxite is normally 30%  (Qld and NT can be of grades up to 50%).  This is all good!
> 
> By the way, the bauxite from WA attracts a premium price because it does not have to be heated to as high temperatures (energy savings) as Bauxite from other parts of the world.




I did own this once.  Still on my watchlist, still interested.  Hold very very prospective land.  Already drilled up by Lang Hancock in the 70's and others.  Plenty of bauxite there...just not up with the jorc code.  I watch with patience.


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## Lucky_Country (17 January 2009)

MAIDEN 18.2Mt INFERRED BAUXITE RESOURCE DEFINED
AT NORTH DARLING RANGE PROJECT, WA
∗
JORC‐compliant Inferred Resource of 18.2 million tonnes at 43.1% Total Al2O3, 31.6% Available Al2O3 and 3.2% Reactive SiO2
∗
Preliminary results of Mineralogical Characterisation work from the “Bindoon Region” confirm favourable metallurgy of bauxite mineralisation being gibbsitic with low Reactive SiO2
∗
Exploration in the “Bindoon Region” is to target new areas of bauxite mineralisation and increase the confidence level of the resource category.
Bauxite Resources Ltd (“BRL”) (ASX: BAU) today announces that an assessment of BRL’s Bindoon and Avon granted and pending exploration licences in the Darling Range, Western Australia hosts a JORC‐Compliant Inferred Resource of 18.2 million tonnes at 43.1% Total Al2O3, 31.6% Available Al2O3 and 3.2% Reactive SiO2 (Table 1).
The maiden resource has been estimated by Ravensgate Mineral Industry Consultants and represents a major step forward for the company in achieving its Stage 1 objective of exporting Direct Shipping Ore (DSO) bauxite at an initial rate of 1 million tonnes per annum (Mtpa) in 2009, increasing to 3Mtpa in 2010.
The bauxite mineralisation present in the Bindoon (E70/3064) and Avon (E70/3003, E70/3159, E70/3433) regions, situated in its North Darling Range Project area, consist of gibbsitic bauxite laterites that were drill tested by CSR Ltd / Pacminex Pty Ltd (Pacminex) in the 1960s/1970s. Pacminex’s drilling targeted two areas, firstly in Bindoon and secondly in Avon. Bauxite mineralisation has been identified within three drill grid patterns at 100m x 100m drill spacing, 200m x 200m and 300m x 300m drill spacing. The reported maiden Inferred Resource represents mineralised material confined within the 100m x 100m grid spacing.
Initial results from Mineralogical Characterisation studies on representative samples from the Bindoon region confirmed that mineralisation present is premium bauxite, being gibbsitic in nature with low reactive silica. This type of bauxite is suitable for digestion in a conventional Bayer Refinery at low temperature and low pressures with low caustic soda consumption.
BRL will target future exploration, testing for bauxite mineralisation continuity in areas with


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## Lucky_Country (17 January 2009)

The bit I like about BAUs last report was the 1 million tonne production in 2009 !

Looks like they are ticking all the right boxes have made Chinese connections and look like they definately know what they are doing.

6 months ago the shareprice would have been over $1 on the news they have released lately.

These days will return soon imo.


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## grace (17 January 2009)

Lucky_Country said:


> MAIDEN 18.2Mt INFERRED BAUXITE RESOURCE DEFINED
> AT NORTH DARLING RANGE PROJECT, WA
> ∗
> This type of bauxite is suitable for digestion in a conventional Bayer Refinery at low temperature and low pressures with low caustic soda consumption.




This is great.  It costs so much in energy if high temps are required.  Low temp, low cost.  Highly sought after imo.

Don't hold at present.  On my watchlist though.


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## Lucky_Country (17 January 2009)

Well Grace dont make the same mistake as I have and leave it on the watchlist for too long.

The Chinese are very keen on BAU bauxite and want a part of the project and the company.


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## grace (17 January 2009)

Lucky_Country said:


> Well Grace dont make the same mistake as I have and leave it on the watchlist for too long.
> 
> The Chinese are very keen on BAU bauxite and want a part of the project and the company.




I traded it on the up leg on the chart.  Didn't make much, but better than a loss.

Options expire 31/1/09, at a 20cents conversion.  Directors have been converting.  I'm sure management would have been hoping the certified reserves would have given the sp a boost so the options were well in the money by the end of the month.  Instead, not even a reaction!  Seems more than a little unfair.  I recall this is very tightly held....


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## Lucky_Country (17 January 2009)

Maybe they dont want the options to be excersied and then they can place them to their Chinese partners !

Im sure anyone who do convert their options will profit bigtime over time !

Must admit I was suprised in the lack of activity after the announcement but not are willing to part with cash in these times.

Come back in 6 months and then we will all be laughing.


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## ptony1948 (22 January 2009)

Hello Lucky_Country.  You've been watching this for a long time.  I'd be interested to know what negatives you see in this stock.
Thanks.   Tony


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## Lucky_Country (23 January 2009)

The biggest negative I see for BAU is just the general market sentiment.

6 months ago they were trading over 50c and with the recent set of announcements they should have been over $1 but the market is just not listening atm.

Im inclined to think China may use its powers to get the best deals for itself which could mean lower commodity prices until there supply of minerals is all but guaranteed.


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## ptony1948 (25 January 2009)

Good point Lucky_Country.  ie re China keeping prices down.  I'd never thought of that idea.  If I was in China's position then I'd do that and get on board as many mining ventures as possible.  High metal prices would have been a killer for them in the last year or so.  
I'm looking to stick with BAU for the long term though as reckon the payout will be worth it.  And I work on the theory that the best time to buy is when no one else is interested.  With top 20 owning re 65% when the change in sentiment comes then the share price will react very nicely.  The reason I was querying other opinions was that with all of the positives I thought that there must have been something else keeping buyers away.  
One of the things that I like about this forum is being able to have access to other people's research because lets face it,  there's a lot of research to be done and not a lot of time. Thanks Lucky_Country.......Tony


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## Lucky_Country (2 February 2009)

BAU on a roll today up 38% at the momment seems like now the options have elapsed or been converted its got a licence to fly.

I think this is just the start as mining to commence mid FEB and low capex to get cashflow positive all is looking great to me.

Chinese offtakes and partners all the right boxes have been ticked and was once touted as the next FMG.


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## kam_star (25 March 2009)

Just spoke BRL team who have informed me that they are currently entertaining delegation from china at the moment and that a annoucement will be out before the end of week. The Team at BRL are hard at work to get the DSO in operation and I hope that hard work pays off for all of us soon.


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## Lucky_Country (25 March 2009)

An announcement by the end of the week now thats what I like to hear !

Should be a welcome boost for the sp that has become very tightly held.


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## kam_star (26 March 2009)

Yes its very tightly held and once news starts to flow and people jump on board you will find that this one will go quite high like it has in the past. I like the management and there links to the government which I wanting to see this go all the way to refinery


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## kam_star (31 March 2009)

What does everyone think of the joint venture annoucement? Looks like they must be interested in something in the ground there. Potential of finding something big you think?


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## Lucky_Country (31 March 2009)

There has been reports of "Gold in them there hills" but its obvious that the main priority for BAU is the bauxite.

Suprised that the announcement was not followed by a report of mining has commenced maybe waiting for the quarterly !


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## kam_star (31 March 2009)

Yes, really looking forward to a in depth update to see what there up to. I know they have been working hard in the background and alot happening over there so looking forward to the details.


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## kam_star (31 March 2009)

Check out BRL's new website http://www.bauxiteresources.com.au
These guys really mean business and have some big plans for the company with a huge experienced management in place. Just check out the personnel involved at this place, They are ready to pack a punch


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## Lucky_Country (31 March 2009)

I do like the new website its very informative.

I hope it marks a shift towards openess and announcements to get peoples attention again and regain some market mommentum.


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## kam_star (28 April 2009)

Just incase you guys haven't seen the latest presentation...here it is

http://www.bauxiteresources.com.au/download/Website Presentation March 2009.pdf

I like the information from page 20 onwards which refers to the case for a refinery and pretty much a site location in place.


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## ptony1948 (4 May 2009)

Big jump today.  Can't find any announcements to go hand in hand with rise.  Wonder if it's a case of someone knows something before the rest of the population.  Time will tell.  Still holding though.


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## mojohand (5 May 2009)

Can't find any announcements?

How about the proposed placement by Shandong No. 1 Institute of 19,700,000 shares at an issue price of 50c released 1st May?


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## ptony1948 (9 August 2009)

Patience finally rewarded on this one.  Up 6c or over 10% on Friday.  Fundamentals have always been good imo but a lot of interest didn't seem to be happening as shown by volumes and share price.  All in all, with trial mining/shipping just started and under 100 mill shares on issue, BAU may now get the attention it deserves.  What I haven't been able to understand is the airplay given to some stocks that I wouldn't touch with a 40 foot pole when BAU has virtually received none. Each to their own I guess.  Others have made comparisons saying there are similiarities to FMG in it's beginnings.  I can't comment as haven't studied FMG but I do know where it went.  Institutional buying would have contributed to FMGs rise.  I can't see that that has happened with BAU yet.  The latest announcements coupled with Friday's price rise will show up on the institutionals radar.  I'd rather they dip their toes now but if they don't it will happen down the track imo.  
I hold and will continue to hold for the long term.


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## kam_star (17 August 2009)

Trading halt at the moment in anticipation for Alumina refinery joint venture. Looks like things are finally going to move much stronger now and will certainly be on the instos raider. Happy Days Guys


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## kam_star (25 August 2009)

*Comments on Wall Street online*

"BAU is also less well known than it should be, but has a very large, easy to mine, profitable resource and a low market cap. Where it is superior IMO is that the potential is even greater.

Given the size and location of its tenements, BAU could easily end up with one of the largest resource holdings of its type in the world. All fantastically located in relation to infrastructure.

It has impressive partnerships already in place with Chinese entities. Clearly these groups would not be bothering to negotiate with a supplier that was not going to be able to supply in significant quantities, for a considerable period of time.

Where most juniors have to resort to cap raisings at low prices, in order to obtain sufficient cash for their development and exploration activities, BAU was able to receive nearly $10m at a placement value around 20% higher than its trading value at the time.

They have $16m in cash, with expenditure for this current qtr expected be under $1m.

BAU has an excellent chance, in the next couple of years, of having a low cost business operation and resource base valued in the billions. IMO.

With a current market cap of much less than $100m it is really poised for a sustained period of strong SP growth and that is without taking into account what should be its fantastic attactiveness, as a takeover target for the giants.

I'm looking forward to continuing good news and great returns, from a small cap that is already well enough established to not qualify as a speccie."


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## Knobby22 (25 August 2009)

What I like about this company is that now the Chinese are in, it will be difficult for the directors to dilute us small guys, it seems to be free for all among the smallcaps and some larger companies at present.


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## kam_star (28 August 2009)

I think that people have yet to realise the significance of how big this company can and will become. Once people start to wake up to these facts then you will see it rise quite rapidly and quite high IMO.


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## jonojpsg (28 August 2009)

Is this a flag I see forming?  SOrry I can't draw on this chart to show it, but if someone else could?

If so, target would be height of the pole which would give 85c-ish?


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## kam_star (31 August 2009)

Thanks Jono, I saw that aswell and I'm not a big graph reader but I saw a target of 85 aswell. Can easily happen, especially with soo much happening at BAU.


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## ptony1948 (7 September 2009)

Reaction to this stock is a puzzle to me.  I bought in at 20c within the last year.  Have made the odd post as was gung ho about BAUs prospects.  Didn't get much reaction which was a little disappointing as was seeking input to see if there was something that I'd missed that may be detrimental.  That's why I like these forums.  It's good to see what you've missed, as lets face it, research does take a lot of time.  So, all I can put the lack of interest down to is that there was a lot of other bargains out there to be had.  But that's ok, as the current 78c price tells me all I need to know.


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## Zird (7 September 2009)

After reading your posts and doing a little reading,  Kam_star & ptony,  I bought a small parcel and glad I did. Would have liked to buy more but my resources are low. You are not alone on  the BAU train. The potential looks pretty  good to my highly untrained eye.


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## kam_star (8 September 2009)

Welcome abroad Zird, the more you read the more you will like BAU and there professional attitude and work ethics. Hopefully we will all look back and be very thankful


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## ptony1948 (17 September 2009)

Hello.
I'm calling on the collective experience of this forum to hopefully let me do what I want to do.
I have BAU shares that have gone from 20c to $1 and would like to access the equity through a margin loan.(I don't want to sell them for quite a while)
Problem is that the margin lenders I've checked out don't accept BAU.  Does anyone know of a margin lender that might?
Looking forward to your vast oceans of wisdom.

Tony


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## jonojpsg (17 September 2009)

ptony1948 said:


> Hello.
> I'm calling on the collective experience of this forum to hopefully let me do what I want to do.
> I have BAU shares that have gone from 20c to $1 and would like to access the equity through a margin loan.(I don't want to sell them for quite a while)
> Problem is that the margin lenders I've checked out don't accept BAU.  Does anyone know of a margin lender that might?
> ...




SOrry Tony but I think you'll find that no margin lender will give you a margin on BAU at this stage.  Maybe if they get production and cash flow happening?  Could be wrong though, have been before


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## kam_star (23 September 2009)

Excellent shining report on BAU and a spec BUY rating


http://www.theaustralian.news.com.au/business/story/0,28124,26091905-5001942,00.html

*Darling aluminium player has shining prospects *

Print SMALL-CAP SPOTLIGHT: www.wise-owl.com | September 23, 2009 
Article from:  The Australian 
Company: Bauxite Resources (BAU)

Share price: $1.16 

Market cap: $150 million 

Recommendation: Speculative buy 

ALUMINIUM prices are in the halfway house. Now fetching US82c (94c) a pound, they've rallied 50 per cent from their lows but remain about half the record levels achieved during in the middle of last year.

Aluminium's fortunes are closely followed by the alumina refiners and bauxite miners in Western Australia's Darling Range. Bauxite is the mineral form of aluminium, from which alumina is extracted and converted to the end-product metal. 

The Darling Range is acknowledged as the largest producing alumina region, accounting for about 18 per cent of global production, and hosts Alcoa's Huntly bauxite mine, the world's largest. 

From an acreage perspective, the place these aluminium all-stars call home is dominated by a relative industry minnow, according to Wise-owl analyst Tim Morris. "Bauxite Resources is the Darling Range's largest tenement holder. With acreage spanning 15,000sq km, its landholdings exceed that of Alcoa and BHP combined." 

On the company's established 18 million tonne bauxite resource, Morris says, "there remains enormous potential; however, management (has its) sights set on near-term production". 

The company is ready to produce direct shipping ore, which requires minimal processing. 

"Trial mining has commenced and ore samples have been sent for assessment by international customers. Pending customer approval, production is set to ramp up to one million tonnes (a year) during 2010, and eventually towards three (million tonnes a year)," Morris says. 

Demand appears strong. Shandong Provincial Bureau of Geology and Mineral Resources, a government agency in China, recently subscribed for a 13 per cent stake in the company. 

On Friday Bauxite Resources announced a $57 million share placement, the proceeds to be used in improvements to infrastructure which will drive down costs and increase potential shipping tonnages. 

Longer term, the company is reviewing opportunities for the development of an alumina refinery and possible smelter. Morris says the Darling Range already hosts three of the lowest cost alumina refineries in the world. 

He says the company is well placed to benefit from any further recovery in aluminium demand. 

"Having started a mining campaign during the worst possible market conditions, and still being able to secure a strategic Chinese backer at a share price premium, is a testament to the quality of its projects and management," he says.


----------



## Zird (26 September 2009)

It is amazing that there are only  a few *but very happy* correspondents to this thread. Thanks for the great information -  this is one happy punter. With the "speculative buy reco I guess it can only get better.


----------



## Michael Dempsey (26 September 2009)

ptony1948 said:


> Hello.
> I'm calling on the collective experience of this forum to hopefully let me do what I want to do.
> I have BAU shares that have gone from 20c to $1 and would like to access the equity through a margin loan.(I don't want to sell them for quite a while)
> Problem is that the margin lenders I've checked out don't accept BAU.  Does anyone know of a margin lender that might?
> ...



Hi Tony, 

If the stock you want to buy on margin is a margin lenders list, then you might find you will have to sell your BAU, then buy the other stock and lodge that as security and buy back your BAU. That will trigger a capital gain though so keep that in mind.

If the stock you want to buy is not on any margin lenders lists, then the other option is to tap any equity you have in any real estate you own.

GENERAL ADVICE ONLY. This information has been provided as general advice only and I have not taken your personal financial needs, objectives or goals into consideration. You must seek advice from a licensed financial adviser prior to acting or making an investment decision.


----------



## Knobby22 (26 September 2009)

Zird said:


> It is amazing that there are only  a few *but very happy* correspondents to this thread. Thanks for the great information -  this is one happy punter. With the "speculative buy reco I guess it can only get better.




Yes, I am very happy and winning the monthly comp.

I know someone who invested an awaful lot in this company and will never have money problems again.

Also, I have seen a PV report valuing the company north of $5 in 4 years. We shall see.


----------



## grace (26 September 2009)

Yes, well done to all holders.  I was in this one some time back.  It did tank after I left, but is now 4x my sell price.  What a ride.  Was always a matter of waiting for this star to be recognised......well done to those holding!


----------



## kam_star (26 September 2009)

Knobby22 said:


> Yes, I am very happy and winning the monthly comp.
> 
> I know someone who invested an awaful lot in this company and will never have money problems again.
> 
> Also, I have seen a PV report valuing the company north of $5 in 4 years. We shall see.




With the massive resource potential that BRL have there is no wonder why. I would agree that $5 and upwards would be easy and cheap once refinery is up and running. Massive company in the making here and just try to absorb that they have a land holding of greater the BHP and Alcoa PUT TOGETHER. Now just imagine what they have in the ground and you will be gob smacked!!!!!


----------



## Knobby22 (27 September 2009)

kam_star said:


> With the massive resource potential that BRL have there is no wonder why. I would agree that $5 and upwards would be easy and cheap once refinery is up and running. Massive company in the making here and just try to absorb that they have a land holding of greater the BHP and Alcoa PUT TOGETHER. Now just imagine what they have in the ground and you will be gob smacked!!!!!




In the end though, Bauxite is relatively plentiful.
The point is the grade, the simplicity of the operation and the access to ports. I just hope management keep their eyes on the ball and don't diversify too much.


----------



## kam_star (27 September 2009)

Knobby22 said:


> In the end though, Bauxite is relatively plentiful.
> The point is the grade, the simplicity of the operation and the access to ports. I just hope management keep their eyes on the ball and don't diversify too much.




Not in china it isn't. Bauxite resources has been forecast to run out in under 10 Years so china is looking at securing its Bauxite before it runs out and BRL is well placed to benefit from china's hunger. Not to mention what they might find in there massive land holdings since SDGM is drilling for everything other then bauxite which BRL has a stake in. This could be the next BHP not FMG.


----------



## N1Spec (27 September 2009)

Knobby22 said:


> Yes, I am very happy and winning the monthly comp.
> 
> I know someone who invested an awaful lot in this company and will never have money problems again.
> 
> Also, I have seen a PV report valuing the company north of $5 in 4 years. We shall see.




$5 in 4 years is conservative, if management is gonna walk the talk, i say $3 by the end of this year. Project pipeline looks do-able, not totally impossible.

Mini FMG in the making, only difference is that its in bauxite!


----------



## ilsupremo (28 September 2009)

Knobby22 said:


> Yes, I am very happy and winning the monthly comp.
> 
> I know someone who invested an awaful lot in this company and will never have money problems again.
> 
> Also, I have seen a PV report valuing the company north of $5 in 4 years. We shall see.





Hi Knobby22.  Do you have a reference for the PV report valuing BAU?  Interested in BAU -  haven't seen any independent commentary on valuation.

thanks


----------



## kam_star (28 September 2009)

ilsupremo said:


> Hi Knobby22.  Do you have a reference for the PV report valuing BAU?  Interested in BAU -  haven't seen any independent commentary on valuation.
> 
> thanks




Hi Ilsupremo,

Well Wise Owl recommended this stock as a buy and stated that it has MASSIVE upside when it was trading at $1.17 so you could say its certainly worth northwards of this price and many people have been stating that it will be $2 and upwards by year end.


----------



## ilsupremo (30 September 2009)

kam_star said:


> Hi Ilsupremo,
> 
> Well Wise Owl recommended this stock as a buy and stated that it has MASSIVE upside when it was trading at $1.17 so you could say its certainly worth northwards of this price and many people have been stating that it will be $2 and upwards by year end.





Thanks Kam_star.  It certainly seems to have that kind of momentum.  When was the Wise Owl recommendation?  Do you have a copy?  I cannot see it on the website.  Still keen to hear more about the VP report Nobby 22 referred to.
thanks


----------



## kam_star (30 September 2009)

Yes I'd be happy to read that report aswell. The wise owl report is only available to subcribers and I'm not a member. If anyone can post it that would be great aswell.


----------



## kam_star (1 October 2009)

FOR IMMEDIATE RELEASE
Mandi Ross
703-358-2976
mross@aluminum.org

Aluminum Association Set to Show Huge Benefits of Building with Aluminum
Association will exhibit at METALCON 2009

ARLINGTON, Va., September 30, 2009 (News Release) ”” The Aluminum Association’s (AA) Building and Construction (B&C) Committee is ready to show how aluminum is driving the green building industry.  The Association will exhibit at METALCON 2009, which will take place October 6-8, 2009 at the Tampa Convention Center, 333 South Franklin Street in Tampa, Florida.

Aluminum is durable, flexible, recyclable, and strong making it the material of choice for builders around the globe.  In fact, today companies are working harder than ever to be more environmentally conscious.  Aluminium building products are made from alloys that are weather-proof, corrosion-resistant and immune to the harmful effects of UV rays.  Aluminum’s lightness allows architects to design light structures with more stability and the means to meet required performance specifications, while minimizing expenditure on foundations.  Chuck Johnson, AA’s Director of Environment, Health & Safety will be on-site to promote this information and more at METALCON, booth #104. 

METALCON will feature more than 8,000 professionals from over 50 countries.  Attendees and exhibitors include architects, engineers, contractors (roofing, residential and metal building), developers and building owners.  The three-day event also includes educational programs with green building topics to serve the growing interest in metal’s key role in improving energy-efficiency in buildings.   

The B&C Committee, which is sponsoring this year’s booth, continues to aid sustainability messaging through end-of-life recycling rates and use-phase environmental benefits of aluminum in building and construction applications.

#   #   #

The Aluminum Association, based in Arlington, Virginia, works globally to aggressively promote aluminum as the most sustainable and recyclable automotive, packaging and construction material in today’s market. The Association represents U.S. and foreign-based primary producers of aluminum, aluminum recyclers and producers of fabricated products, as well as industry suppliers. Member companies operate more than 200 plants in the United States, with many conducting business worldwide.


----------



## Kalvin (5 October 2009)

Looks like BAU is moving ahead with a MOU signed today with a big Japanese resources shipper......500,000 tons aimed for by 2010...very interestina and exciting!


----------



## kam_star (6 October 2009)

Thats only the one of MANY Mou's BAU have signed and MANY MANY  more to come. I like the part about having very high Quality product above the rest


----------



## kam_star (8 October 2009)

http://finance.yahoo.com/news/Alcoa-returns-to-profit-as-apf-3618975448.html?x=0

*Alcoa returns to profit as cost cuts, sales help*
Alcoa posts surprise 3rd-quarter profit of $77M; forecasts higher global aluminum demand
By Daniel Lovering, AP Manufacturing Writer 
On 7:36 pm EDT, Wednesday October 7, 2009
Buzz up! 1 
Print

Companies: Alcoa, Inc. 

PITTSBURGH (AP) -- Painful cost-cutting and rising sales to automakers helped the nation's largest aluminum producer return to profitability for the first time in nine months.


AP - A woman walks into the world headquarters of Alcoa in Pittsburgh, Wednesday, Oct. 7, 2009. Alcoa is ...
Related QuotesSymbol	Price	Change
AA	14.20	+0.31



Alcoa Inc. on Wednesday also forecast an 11 percent increase in worldwide aluminum demand in the second half of the year, fueled partly by robust growth in China. The lightweight metal is used in everything from airplanes to cars to houses.

Even though Alcoa reported a 71 percent drop in third-quarter profit from a year earlier, the results were a relief after three straight quarterly losses.

"We do clearly see growth, substantial growth ... in China," Alcoa CEO Klaus Kleinfeld told analysts and reporters after the company reported results. "(The) second half of the year is clearly better than the first half in many industries and many regions."

The Pittsburgh-based company said rising demand from several industries, especially automakers, lifted its revenue compared with the prior three months. Sales to automakers jumped 21 percent from the second quarter.

Although North American auto production dropped 20 percent in the third quarter year-over-year, the aluminum content in vehicles may have risen as automakers move to meet higher federal fuel economy standards by making cars and trucks lighter, said Michael Robinet, a vice president at CSM Worldwide, an auto industry consulting firm near Detroit.

Investors cheered the news, sending Alcoa's shares up 5.9 percent in after-hours trade.

Alcoa earned $77 million, or 8 cents per share, for the three months ended Sept. 30. That compared with profit of $268 million, or 33 cents per share, a year earlier.

Revenue tumbled 34 percent to $4.62 billion from the same period a year earlier, but was up 9 percent from the second quarter of 2009.

The latest results partly reflected intense cost-cutting by Alcoa. The company was forced to slash thousands of jobs, sell businesses and curb production as aerospace, automotive and construction companies cut their orders late last year amid the global economic downturn. That pushed up stockpiles of the industrial metal and forced down prices.

Alcoa has cut about 20,000 jobs since the downturn began and currently employs about 63,000 people. It's also reduced its production capacity by about 20 percent.

But just last month, Alcoa boosted its annual forecast for global aluminum consumption, citing stronger demand from China.

Prices for the metal, which strongly influence Alcoa's fortunes, rose about 20 percent to an average of about 80 cents per pound during the quarter compared with the prior three months. But they remained well below record levels of about $1.50 reached a year earlier.

Excluding restructuring charges, Alcoa's earnings in the latest quarter amounted to 4 cents per share, easily beating expectations of a loss of 9 cents per share on revenue of $4.55 billion. Wall Street typically excludes one-time charges in its estimates.

Shares of Alcoa climbed 82 cents to $15.03 in after-hours trade.

AP Auto Writer Tom Krisher in Detroit contributed to this report.


----------



## kam_star (9 October 2009)

*The Bottom Line - Aluminium May Have More Lustre Than Gold*

The Bottom Line - Aluminium May Have More Lustre Than Gold [column]
Johannesburg, Oct 09, 2009 (Business Day/All Africa Global Media via COMTEX) -- 

GOLD has broken records for three successive days, but what about the other metals? And what are their prospects? 


The answer to the first question is that gold has, in fact, been the underperformer . Nickel is up almost 200% from its low at the end of last year, zinc 176% and copper 109%. 

After such rises , one would not think there was much upside left. But Royal Bank of Scotland has just released its latest Commodity Companion, which speculates that copper will hit record levels in 2013. This is based on a world gross domestic product rebound of 3,6% next year. But such has been the rebound, the bank is expecting commodities to pause for some time before tracking upwards again. 

The surprise metal is aluminium, which has rebounded only 40% from its low. Taking the anticipated economic growth into account, together with the fact that aluminium has rebounded the least, it is this metal which may well have the greatest upside over the medium term. 

CLIMATE change is often seen as a burden that business must bear. But perhaps it should rather be seen as an opportunity. 

And with the United Nations climate change conference in Copenhagen -- which will set targets for reducing carbon emissions -- taking place in December, a sense of urgency would not go amiss. 

Richard Worthington, climate change programme manager for the World Wildlife Fund for Nature SA, points out that 80% of SA's emissions are related to energy supply and use. This is high compared with other countries. 

In reducing our emissions (and, sooner or later, we will have to, despite the foot-dragging), there is an opportunity to grow the services sector of the economy, Worthington says. 

We know that renewable energy developments create more jobs than conventional energy, and many of these jobs are in rural areas -- precisely the places where the most concerted efforts at development are needed. 

We also know that climate change will have the most severe effect on the poorest communities, so sustainable development and poverty alleviation should be a priority for SA. 

David Hampton, managing partner at London-based consultancy Irbaris, says companies do not have to choose between being successful and being sustainable. Rather, success and sustainability go hand in hand. 

Groups that choose to cut carbon footprints often gain competitive advantage and reap the benefits of an enhanced reputation. 

Nedbank managed to secure cheaper financing through the International Finance Corporation because of its commitment to sustainability. 

SUPER Group 's shareholders have a lot riding on the company's rights issue, considering they spurned the advances of Middle Eastern logistics group Agility. 

The share price is a shadow of its former self -- it traded at about R15 barely three years ago and closed at 94c yesterday. 

The rights issue promises to clean up Super Group's balance sheet and may console some investors, at least those who take up the offer, which comes at a knocked-down price tag of 45c. 

Even if shareholders do not subscribe, Super Group will raise at least R1bn. 

Major banks and minority shareholders such as Allan Gray have committed to underwrite the subscription of 2,2-billion shares. 

Larry Lipschitz, the former CEO and founder who seems to have been forced out, borrowed heavily and continued making acquisitions -- many of which were outside the company' s core business of supply chain and logistics. The economic crisis has further battered earnings. 

But, after the rights issue, many of the liquidity concerns will be put to bed. The net debt, excluding its Australian operation and its full maintenance lease, will drop from R1,29bn to R357m. The trade gearing ratio will decline from 120% to 18%. 

The Bottom Line is edited by Colin Anthony.


----------



## Knobby22 (8 December 2009)

Out of favour at present though the story still holds. May get into the 60s with a bit of luck.

The whole market seems to have run out of steam.


----------



## ptony1948 (13 February 2010)

What's Going On!!!!!!!!!!!!!!
Tried with a stockbroker but as I wasn't a client didn't seem interested. So I thought I'd give the forum a go.
03/02/10.  110 trades in bau.  81 were less than 300 shares and most of these under 200 shares.  That's about 72% under 300 shares.
12/02/10.  49 trades out of 79 under 900 shares.  About 62% under 900 shares.
This has happened plenty of other days but I haven't done the figures.
It smells of some kind of manipulation but I don't understand the method.
Can anyone elaborate as to what is going on and why it is happening?
Thanks.
Ptony1948


----------



## AngusSmart (1 April 2010)

Anyone doing anything recent with this? took a big hit today down 30%

i was told to watch it a while ago and never bought in..


----------



## Knobby22 (1 April 2010)

The EPA want to do a public submission which will mean the project will be put on ice for an indertiminate time.

The company is saying it is caused by an opposition mining company and they are protesting and asking the EPA to review their decision.
Not good.


----------



## jonojpsg (17 August 2010)

Thought I'd flag this for the fact that it is currently valued at $13m BELOW it's cash in bank  Current MC is $41m and cash in bank is $54m.

Yes they have had issues with EPA approvals AND potential IMF litigation - BUT they have moved on from their appeal and perhaps have had some frank discussions with the EPA re what will more likely get approved, given that they have dropped their appeal and lodged a new application for mining a different area.

I'm having a punt on it anyways


----------



## bendem (20 November 2010)

Nothing has been posted on this one for some time. Is anyone still watching BAU?


----------



## hatemondays (30 December 2010)

Only just happened on this forum by accident whilst trying to find out a little more about BAU'S current state  of play. Eight pages of exceptional historic information from all contributors. I have owned this little beauty since sometime in 2008 (33 cents). Have certainly ridden the highs and lows since. I am confident that this stock represents a large chunk of retirement potential for me  and look forward to some encouraging announcements from BAU in the new year re: environmental reviews. Thanks for the varied opinions, many of you have echoed my own thoughts at the time of writing.....wish I had discovered this forum to have been able to share them


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## hatemondays (11 February 2011)

14,000,000 shares traded today and a speeding ticket by the asx. was up about 8 cents on yesterdays close at one point. Wondering if it was an institutional buyer or lots of others who have an insight into some exciting things on the horizon for BAU.


----------



## lioness (12 February 2011)

hatemondays said:


> 14,000,000 shares traded today and a speeding ticket by the asx. was up about 8 cents on yesterdays close at one point. Wondering if it was an institutional buyer or lots of others who have an insight into some exciting things on the horizon for BAU.




Hatemondays,

I bought 300K shares yesterday. I reckon this has potential to go back to 70 cents plus.

Certainly 48 cents within weeks. This story will unfold soon. Largest volume traded on record states to me EPA approvals are very close and the word is out.

50 million in the bank and the last cap raising at 95 cents means this must go up for people to get their money back.

In other words, I am all in.


----------



## jonojpsg (12 February 2011)

lioness said:


> Hatemondays,
> 
> I bought 300K shares yesterday. I reckon this has potential to go back to 70 cents plus.
> 
> ...




Mate, you certainly have some money to throw around lioness!!  Love your work though, and I also bought in yesterday, albeit not quite as large a chunk as you  Agree that with substantial JV settled there seems little downside now, as long as environmental approvals get given!!


----------



## earthgas (12 February 2011)

Certainly a under value stock, and the new CEO has 3 million out-the-money options at 40c.The only concern I have at this moment is that, they are still in talk with the local residents for further development. Hopefully, all obstacles will be cleared soon. RBC has pick Aluminium for the favour metal to play this year. I reckon once the SP exceeds 40c, it will be sky clear to 80C. DYOR


----------



## lioness (13 February 2011)

jonojpsg said:


> Mate, you certainly have some money to throw around lioness!!  Love your work though, and I also bought in yesterday, albeit not quite as large a chunk as you  Agree that with substantial JV settled there seems little downside now, as long as environmental approvals get given!!




Jono, I am topping up on Monday as I expect the T+3 sellers to be burnt in the next few days. You can add another 300K for me in the next 2 days.

No-one turns over this volume without something being close to approved!!

Need to give it 2 weeks though to avoid the ASX ticket!


----------



## lioness (13 February 2011)

earthgas said:


> Certainly a under value stock, and the new CEO has 3 million out-the-money options at 40c.The only concern I have at this moment is that, they are still in talk with the local residents for further development. Hopefully, all obstacles will be cleared soon. RBC has pick Aluminium for the favour metal to play this year. I reckon once the SP exceeds 40c, it will be sky clear to 80C. DYOR




Good pickup earth, when do these options expire??


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## earthgas (13 February 2011)

lioness said:


> Good pickup earth, when do these options expire??




They will expire in 3 years time, you can find it in the Shareholder letter and Notice of EGM/Proxy Form.


----------



## lioness (13 February 2011)

earthgas said:


> They will expire in 3 years time, you can find it in the Shareholder letter and Notice of EGM/Proxy Form.




If they expire in 3 years time Earth, what is the rush to get them over 40 now??


----------



## earthgas (13 February 2011)

40c is my technical break out point. The option price can provide us a pretty good indicator for the risk, which is very limited imo


----------



## ROE (14 February 2011)

I trade this one on occassion, I made a bit of money in the past...

After Iron ore and Coal, Bauxite is next...

I'm in 100K shares


----------



## keitsuke (4 March 2011)

Finally some action today after the pull back from mid Feb. Hopefully it's the start of a run to 40c.


----------



## kingkev (24 March 2011)

can't put my finger on this one.  Fluctuates a fair bit but looks like some support at around the 23c mark

Also waiting for the forward march


----------



## hatemondays (25 March 2011)

I've held these for approx 2 yrs and believe they are a definite winner. I have , however been extremely frustrated the last 12 months or so,  with their stagnancy. I hope they get their decision on the environmental review sooner rather than later. Their recent market announcements otherwise have been very positive.


----------



## ROE (25 March 2011)

hatemondays said:


> I've held these for approx 2 yrs and believe they are a definite winner. I have , however been extremely frustrated the last 12 months or so,  with their stagnancy. I hope they get their decision on the environmental review sooner rather than later. Their recent market announcements otherwise have been very positive.




This is the only ming stock I speculate I join not long ago 
Data and fundamental do stack up for this one...

I'm patiently waiting


----------



## mr. jeff (25 March 2011)

hatemondays said:


> I've held these for approx 2 yrs and believe they are a definite winner. I have , however been extremely frustrated the last 12 months or so,  with their stagnancy. I hope they get their decision on the environmental review sooner rather than later. Their recent market announcements otherwise have been very positive.




ummmm.....





Condolences with that, hatemondays. Imagine if you took the 5 bagger at its peak, then bought in now and rode it back there. 25 bagger. 

They have definitely become more mentioned in the media in the last couple of months.... will investigate. A well known trading newsletter very recently implied that aluminium could be in for a move this year, but like an elbow....


----------



## kingkev (30 March 2011)

Fundamentals look Ok with this bunch and bauxite is supposedly on the up so decided to get in................only small time but will surely watch this


----------



## hatemondays (30 March 2011)

Their fundamentals have always looked great, to those of you who have gotten in on these lows, I wish all the very best. It means I also do well hehehe. Yes, if I timed my exit at highs and got back in at lows I could have converted my investment inot a 25 bagger. I am not a trader though. I have a few selected people in life who I listen to when they speak and I like to research the companies we discuss. When one such as BRL comes along, I invest to hold and hopefully ride the ups and downs until they break out and have a Fortescue like run. I live in hope and yes very emotionally attached to a select few stocks like BRL. My holdings are small, it's as my current financial circumstances will allow. Here's hoping. Technicals and candle charts do very little for me .....primarily because I don't understand them. So my gut will have to do, as ulcerated as it is at this time


----------



## kingkev (4 April 2011)

Why no JORC announcements yet.  These guys have done heaps of drilling and also some sample shipments

any ideas?

Does that mean that drilling to shallow in order to announce any jorc?


----------



## kingkev (6 June 2011)

And still the SP keeps heading South.  Any ideas as to why?


----------



## mr. jeff (6 June 2011)

kingkev said:


> And still the SP keeps heading South.  Any ideas as to why?







Seem to be a lot of people loving the ORD stock right now...much more sexy if you like the chances! Maybe this has drained the interest temporarily!


----------



## Julia1979 (7 September 2011)

hmmmmm....Appendix 3Y - Scott Donaldson purchase of 250000 shares

just a small hint of insider action. And still I don't lose that feeling that something is in the bushes ready to pop out. 

Cash, JVs, all in place. If our Darling is getting dressed up again, BAU sp will explode IMO

Just can't afford to be not invested here.

Regards
Julia


----------



## springhill (31 July 2012)

*NEW BAUXITE RESOURCE AT WILLIAMS PROJECT, WESTERN AUSTRALIA
*Key Points:
• New Ceres Bauxite Resource 15.0 Mt @ 40.9% Al2O3 (total), 31.7% Al2O3 (available), 3.0% SiO2 (reactive) (Table 1)
• Total Bauxite Resource base increased by 12% to 139.5 Mt @ 40.1% Al2O3 (total), 30.4% Al2O3 (available), 2.7% SiO2 (reactive)
• Ceres Resource has encouraging available alumina to reactive silica ratios, considered a desirable characteristic for alumina refining
• New Resource is close to existing highway and heavy rail infrastructure, on large privately owned and predominantly cleared farmland
• Further exploration activity planned for 2012

*SUBSTANTIAL NEW BAUXITE RESOURCE OF 73 MILLION TONNES AT FELICITAS PROJECT, DARLING RANGE WESTERN AUSTRALIA*
Key Points:
• Substantial new Felicitas Bauxite Resource - 73.3Mt @ 39.2% Al2O3 (total), 30.3% Al2O3 (available), 1.9% SiO2 (reactive)
• 143% increase to the total BRL Bauxite Resource base to - 124.5Mt @ 40.0% Al2O3 (total), 30.2% Al2O3 (available), 2.7% SiO2 (reactive)
• Resource has high available alumina to reactive silica ratios, considered a desirable characteristic for alumina refining
• Significant bauxite horizons between 2m to 16m thick, typical overburden between 0.5m to 2m
• Good resource road access, within 5km of existing heavy rail infrastructure being 100km to Kwinana Port
• Resource is on large privately owned and predominantly cleared farmland in an existing quarrying area
• Further resource and metallurgical drilling planned for 2012 with potential for resource increase


*NEW CERES BAUXITE DEPOSIT SIGNIFICANT BAUXITE EXPLORATION RESULTS*
Key Points:
 Preliminary assay data from Ceres Prospect suggests potential for a significant resource.
 Bauxite horizon encountered over a 3,500Ha area and up to 8m in thickness.
 Thin overburden cover of less than 2m throughout majority of the mineralisation area.
 Low reactive silica with favourable available alumina to reactive silica ratios.
 JORC bauxite resource estimate expected in June quarter of 2012.
 The majority of the tenement area in the region is untested for bauxite


----------



## Knobby22 (11 February 2013)

I'm back in after a long hiatus at 12c. Doesn't seem to be much downside and a lot of (possible) upside. Very lucky to get my order filled before it spiked with the announcement of the new CEO.


----------



## JTLP (12 February 2013)

Knobby22 said:


> I'm back in after a long hiatus at 12c. Doesn't seem to be much downside and a lot of (possible) upside. Very lucky to get my order filled before it spiked with the announcement of the new CEO.




Do you know what their cash backing is? I seem to remember it was something crazy and a while ago just cash valued the company @ 20cents?


----------



## Country Lad (12 February 2013)

JTLP said:


> Do you know what their cash backing is? I seem to remember it was something crazy and a while ago just cash valued the company @ 20cents?




Cash backing is 19 cents per share 
Asset backing about 23 cents per share

Cheers
Country Lad


----------



## galumay (12 February 2013)

Not sure what the mineralisation of bauxite is in the mined resources in WA, but the figures quoted for BAU's resources are very poor compared to NT/QLD bauxite which is typically 47-52% Alumina. I wonder how much of their resource would actually be economic unless Alumina prices increased greatly. 

I dont know the answer, but I sure as hell would be finding out before I took a punt on them!

EDIT - I did some more research and it seems that there are compensating factors for the low Alumina %, these factors do make the Darling Ranges bauxite reserves economic to refine.


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## JTLP (13 February 2013)

Country Lad said:


> Cash backing is 19 cents per share
> Asset backing about 23 cents per share
> 
> Cheers
> Country Lad




Thank you!

On that alone you could believe that there is scope for at least a rise to 19 cents...but it's a strange old market for resources atm...


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## ROE (14 March 2013)

do we have 31 million band together in ASF...

it has 45m cash 7m worth of properties and plants

the whole market cap is 31m 

we buy it up and split the cash that is a cool 30%


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## skc (15 March 2013)

ROE said:


> do we have 31 million band together in ASF...
> 
> it has 45m cash 7m worth of properties and plants
> 
> ...




That won't work...The directors won't sell to you at current price. They will sell at NTA plus project value.

I held this for some time on this notion but gave up eventually.


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## Telamelo (22 April 2016)

*Re: BAU - Bauxite Resources *52 week high's.. with $27M cash in bank!*

Has $27M cash in bank with $0 debt hinted 'looking for opportunities both in and out of the mining sector' (sp cash backing at around 0.135c)  Perhaps another capital return maybe during 2016/17?

Bullish uptrending chart that nudged fresh 52 week high's of 0.105c earlier today...   'the trend is your friend' 

---20/04/16 Completion of Yankuang Transaction with Sale of Fortuna-BAU
---05/04/16 Director Robert Nash buy's more BAU shares (on-market)

Please dyor as always

Cheers tela


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## Telamelo (24 April 2016)

From 28/01/16 quarterly report..  following completion of the Yankuang transaction on 21 January 2016, the company received net proceeds of $6M (increasing cash funds to $27.1M), and the number of shares on issue were reduced from 234,002,336 to 214,302,336.

Future Operations:

The Board is now focussed on identifying new opportunities both within and outside the mining industry and will undertake reviews of new projects in the coming months.

The Company's current cash burn rate is in the process of being reduced significantly, and the revised budgeted cost of operations will be expected to reduce to less than $350k/quarter (before any interest receipts) and all surplus assets will be reviewed and rationalised in an orderly manner as markets allow for reasonable prices to be achieved.

The Board will continue to manage the Company in the best manner in which to maximise returns to shareholders and these may include various capital management initiatives.
---------------------------

Based on 214,302,336 issued equity shares the market capitalisation is $A21.2 million. The top twenty shareholders hold 62.3% of the issued capital leaving a float of 37.7%.

In the last 3 months the stock has hit a new 52-week high seven times, pointing to a significant uptrend.
• Its Moving Average Convergence Divergence indicators are rising, with its 12-day higher than its 26-day.
• • The price to 200-day MAP (moving average price) ratio is 1.21, a bullish indicator.
The stock traded at a 21-month high of 10.50c yesterday. 
Both the 12-day EMA as well as the 26-day EMA are rising, another bullish signal.
RSI (14) is currently 65.4 and rising along with the MACD (12,26,9)
The Q Ratio, defined by James Tobin as MCap divided by Total Assets, is 0.8. Compared with the rest of the market BAU is undervalued.

next Quarterly report scheduled 28/04/16

Please DYOR as always

Cheers tela


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## Telamelo (28 April 2016)

28/04/16 Quarterly:   BAU is in a strong financial position with significant cash reserves and no debt.   As at 31 March 2016 the Company held AU$27.3 million in cash.

Future Operations:

The Board is now focussed on identifying new oportunities both within and outside the mining industry and is undertaking reviews of new projects.

The Company’s current cash burn rate has been reduced significantly, and it is expected to maintain these levels in the near term with surplus assets continuing to be reviewed and rationalised in an orderly manner as markets allow for reasonable prices to be achieved.

The Board will continue to manage the Company in the best manner in which to maximise returns to shareholders and these may include various capital management initiatives.

Cheers tela


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## Telamelo (28 April 2016)

Telamelo said:


> 28/04/16 Quarterly:   BAU is in a strong financial position with significant cash reserves and no debt.   As at 31 March 2016 the Company held AU$27.3 million in cash.
> 
> Future Operations:
> 
> ...




Still trading quite a bit below cash backing (with nta around 0.135c).. and having $27M cash! - would be good if they looked into picking up a positive cash flow acquisition to add/enhance further value for shareholder's imo

Hopefully, we may soon find out.........   Cheers tela


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## galumay (28 April 2016)

I suspect NTA is extrmely misleading with BAU! Not much in the way of realisable assets there.


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## Telamelo (29 April 2016)

*Re: BAU - Bauxite Resources * 5c (per share) capital return to holder's !!!*

Proposed 5c (per share) capital return to holder's !!! 
29/04/16 Bauxite Resources Limited (BAU) is pleased to announce that the Board has resolved to approve a 5 cent (per share) capital return, subject to shareholders approval.

Following the successful conclusion of the sale of BRL’s interest in the BAJV to its Chinese joint venture partner Yankuang, BRL holds surplus cash to its expected future funding requirements, and the return of capital will, if approved by shareholders, be made prior to the end of the financial year.

The current cash reserves of the Company are in excess of $27.3m, and the proposed capital return of 5 cents per share will result in approximately $10.7m being returned to shareholders, leaving the Company with $16.6m cash retained, no debt and other substantial assets.

-----------------------------------
Have alluded about this scenario coming to fruition during this past week....... well done BAU.

Cheers tela


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## System (21 November 2019)

On November 21st, 2019, Bauxite Resources Limited (BAU) changed its name and ASX code to Australian Silica Quartz Group Limited (ASQ).


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## finicky (2 June 2021)

ASQ has a 50% share of half the sovereign project, along strike I suppose you could put it, of the Chalice (CHN) holdings in the 'Julimar Complex'. Someone (a professional trader) is saying we should buy ASQ because it is cheap cf the market cap of DEV which has 3/4 of the Sovereign project but ASQ has a lot less meat on the bone after this chart? Not buying this chart myself anyway. Good signs but mostly nearology so far is my vibe. Someone wanting a stake in the province might care to to spend more time on it.







Daily


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## Dona Ferentes (30 July 2021)

finicky said:


> Not buying this chart myself anyway. Good signs but mostly nearology so far is my vibe.



_and back to sub 10c almost as quickly as it got away._

updating from the Quarterly
:

DevEx completed followup aircore drilling on the *Sovereign *magnetic complex (assays pending)
*Albany White Hill Silica Sand Project * - Scoping Study looking at exports of 0.5 - 1.0 million tonnes per annum is progressing with assessment of metallurgy, infrastructure requirements, approvals timing, and product market conditions
JORC Inferred Resource 11.6Mt with >99.9% SiO2 and <50 ppm Fe203
Silica sand offtake enquiries remain extremely strong, current unusually high international sea freight rates are impacting buyers ability to source bulk products from Western Australia



> _Silica sand is in heavy demand due to two factors: one, the growing number of industrial and technology products that require it, and the growing resistance by Asian governments to dredging rivers and beaches to mine sand._





> _Silica sand is a bulk commodity and one of the most mined commodities in the world. Its secret is the existent of angular particles.  These can interlock and provide much greater strength for products like concrete, which require the basic silica supply.Glass making is its most popular use – all types of glass require it. It is also needed in foundries, kitchen taps, ceramics, cosmetics, paint and coatings, metallurgy, chemicals production, oil and gas recovery, water filtration and sand for construction._




Cash at bank at 30 June 2021 was $5.83m.  The Company has no debt .
.


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## frugal.rock (5 April 2022)

Randomly stumbled over this one while looking for a similar ticker.
Weekly chart.
SP is slightly rising on the daily, pithy volumes though. An unknown, but might push through above 10 cent area?
If they are actually producing silica, might be worth a delve into current FA ?


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