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ASQ - Australian Silica Quartz Group

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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
Click to expand...

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
 
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?
Click to expand...


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


of7ktk.jpg
 
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??
 
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?
 
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
 
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+ :)
 
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!! :D Lets hope iam right

I disclose holding
 
***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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