On a more global level the LED demand is expected to increase from 864 million in 2015 to 4.1 billion units by 2024. There seems to be a surge in the demand for the Alumina stocks, here are few of them which are discussed under this category.
Altech Chemicals (ASX: ATC) - The company has begun its stage 1 HPA plant construction in Malaysia. The production expected will be of 4,500 tpa of 99.99% HPA, once the plant is fully operational. Based on a selling price of US$26.90/kg the HPA operation is expected to have US$ 298 million as the capital expenditure and at the same time generate EBITDA of US$ 76 million a year. The gross margin is at 63%. For the first 10 years of operation Altech has also secured in an offtake agreement with Mitsubishi for the first 10 year of operation. The stock was trading at a flat market price of $0.155. The stock has undergone a performance change of 29.17% in last one year as at September 06, 2018.
Andromeda Metals (ASX: ADN) – The company is under a joint venture agreement with Minotaur Exploration, and Andromeda metals is earning up to 75% in the Poochera kaolin-halloysite project. With this deal the company will spend $6 million over the next five years on advancing the project. Poochera’s primary Carey’s Well deposit resource of 12.7 million tons, is expected to yield 12.7 Mt of minus 45-micron quality kaolin for the paint, plastics, rubber, ceramics, paper, environment and pharmaceutical sectors. The company is evaluating whether a 99.999% pure HPA can be created via standard multiple purification stages. As at end of quarter June 30, 2018, the company had cash and cash equivalents at $861,000. The stock was trading at a flat market price of $0.006 and performance change of 27.28% was noted in last one year as at September 06, 2018.
Hill End Gold (ASX: HEG) – To focus on its Yendon kaolin project, Hill End Gold is in the process of disposing off its gold assets. Its first aim is to produce 99.99% HPA and above, using Kaolin. 8,000tpa of 99.99% HPA or higher could be generated as per the prefeasibility study. To generate EBITDA of US$133 million, capital cost is estimated at US$271 million. With a 6% stake in Tolga Kumova, the founding director of Syrah Resources is among the top five shareholders. As at end of quarter June 30, 2018, the company had cash and cash equivalents of $1.604 million. The stock was trading at a market price of $0.063 near its 52-week low and performance change of -7.35% was noted for one year as at September 06, 2018.
Collerina Cobalt (ASX: CLL) – The company using readily available industrial products as its feedstock and using its proprietary solvent extraction and refining process is focused on fast-tracking to HPA production. Collerina believes it is reducing the capital required to begin producing HPA by using industrial feedstock. The company has identified secure premises to complete its second mini-rig run, also for the upcoming definitive feasibility study it is hosting the pilot plant. The enterprise value of the firm is $64.7 million and the company has cash in hand of $4.0 million. The stock was trading at a flat market price of $0.105 and saw a performance change of a staggering 243.75% for one year as at September 06, 2018.
FYI Resources (ASX: FYI) – This is another upcoming HPA producer with its 100%-owned Cadoux kaolin deposit in WA, it is hoping to bypass the traditional manufacturing method. Exceeding the company’s target of 99.99% purity Cadoux feedstock has produced HPA ranging from 99.996% to 99.997%. A capability of supporting a 50-year mine with the current resource of 16.1Mt at 11.76 aluminum. As at end of quarter June 30, 2018, the company has cash and cash equivalents of $2.896 million. The results are supporting the realization of a world class commercial strategic commodity refinery. The stock was trading at a flat market price of $0.090 and performance change of a staggering 210.34% in one year as at September 06, 2018.
Australian Bauxite (ASX: ABX) - Using ALCORE technology to produce aluminum fluoride and other co-products including HPA, the company recently announced that its wholly-owned subsidiary ALCORE Ltd has secured global licence rights to refine bauxite. Stage one pilot plant is under construction in New South Wales based on ALCORE technology. Across Queensland, NSW and Tasmania, Australian Bauxite holds 100% of 14 bauxite prospective tenements. As at the end of April 30, 2018 the group’s available cash stands at about $1.47 million. Australian bauxite has no current plans for capital raising and has lines of credit for working capital. The stock was trading at a flat market price of $0.120 and performance change of -25.00% was noted for one year as at September 06, 2018.
Nova Minerals (ASX: NVA) - To develop an HPA operation during the 2018 financial year, Nova Minerals looked to acquire 100% of private entity Halcyon Resources. But after thorough due diligence the project was not in the company’s best interests as felt by Nova’s board with the kind of financial input required. However, after paying $55,000 to the company, Nova agreed to maintain a 26.3% interest in Halcyon. Nova anticipates Historic drilling at the kaolin project is easily upgradeable to a JORC resource with minimal additional exploration. The stock was trading at a flat market price of $0.027 and performance change of a staggering 350.00% was reported for one year as at September 06, 2018.
Platina Resources (ASX: PGM) – The company from its Owendale scandium, cobalt and nickel project in NSW, is evaluating the potential of producing HPA as a by-product. Platina produced a 99.989% pure HPA, in the first refining attempt. To determine the economic viability of generating HPA at Owendale, the company plans to carry out further testing. The current enterprise value is at AUD $21 million with cash and cash equivalent on hand as at Sep 30, 2018 of AUD $4.1 million and with zero debt facility which represents a healthy balance sheet. The stock was trading at a flat market price of $0.100 and performance change of about 8.70% has been noted for one year as at September 06, 2018.
The price momentum may continue to build in the international market of Alumina until there is an ease in the supply restraints.
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