Rising bauxite prices just cream on top for QBL if profitable FOB @ $20/t even taking the $26/t for inferior Malaysian bauxite is a 25% profit margin.
It's all about whether project obtains approval and we'll be away agree the window is open now.
You won't know Chinese stockpiles of bauxite are depleted until they become desperate and price surges they're very good at price manipulation and had back yard operators in Malaysia over a barrel with negotiations but the Indonesian and Malaysian ban must be stressing them a bit now.
2-3.5 tons of bauxite required per ton of aluminium. Roughly 55mt of aluminium
Produced per year and forecast to grow at 5%+ per year to 2020 so your looking to add around 20mt per annum of bauxite easily which was the total Malaysia produced last year anyway so underlying demand should be a boon for bauxite producers the stability of supply from Aussie mining also makes it attractive.
QBL Price at posting:
0.7¢ Sentiment: Buy Disclosure: Held
