high purity alumina – apple inc. invests $500m

Global Smart Phone Makers Desperate for Unique Ingredient: Tiny ASX Company to Supply


Apple Inc. has entered the building.

We recently discovered that none other than Apple Inc. – one of the biggest companies in the world – is investing in a material that provides scratch-resistance, flexibility and a brighter display for its next wave of smartphones and tablets – artificial sapphires.

Apple Inc. recently invested over half a billion dollars in sapphire production.

Apple Inc.’s major investment is a clear signal that Apple Inc. intends to incorporate artificial sapphire into the next wave of smart phones and tablets. Based on history, it’s likely that other producers will follow suit and enter the game also.

In order to make sapphire, there is one key component. High Purity Alumina – HPA. High end, industrially produced, Aluminium Oxide, Al2O3.

HPA allows the dreams of engineers to become reality in the hands of consumers. HPA’s unique properties allow futuristic, scratch resistant super strong screens to be produced for the next wave of smartphones and tablets.

We have a company in our portfolio on track to become a major supplier of this valuable commodity.

This company is on the cutting edge of science, applying for patents and refining their process – with the ultimate goal of creating HPA with a purity over 99.99% (4N), which can sell for up to $500/kg – largely dependent on a number of characteristics.

This company appears to be developing a top secret processing plant which will have an estimated 1 to 2.5 tonne/day capacity – at a sale price of up to $500/kg, that’s a very impressive potential revenue stream…

To get this 1 to 2.5 t/day plant running they will need an estimated $10 million to $20 million – whereas an existing HPA production plant of similar capacity has required an investment of over $80 million dollars.

This small company has a kaolin/aluminous clay JORC Resource of 297 Mt – with an exploration target of 2.4 billion to 3.8 billion tonnes.

This company intends to use its kaolin/aluminous clay to make HPA of extraordinarily pure levels.

Just the thing a high tech company like Apple needs for their next generation of smart phones and tablets.

That company is Australia Minerals & Mining Group Ltd (ASX: AKA):

AKA_Update_010

AKA is a tiny $9 million cap company that is steadily progressing its plans to produce a specialty, unique product, High Purity

AKA is now in the implementation phase of their HPA project. This year should see a string of catalysts related to the ultimate goal of commercial HPA production in early 2015.

AKA has been in our portfolio for a while now – our original article Junior Mining Company To Ride Surge in Demand for Key Material Used In Next Generation Smart Phones and LCD TV’s highlights all the reasons why.

With each update, AKA has taken bigger steps toward its final goal – producing extremely high quality HPA.

Apple’s New Investment in High Purity Alumina

Apple Inc., market leader in smart phone and tablet technology, is investing over half a billion dollars in the same sapphire material that AKA is catering for in its HPA production.

GT Advanced Technologies, a ‘diversified technology company’ with a massive market cap of $1.785 billion, recently signed a huge deal with Apple – for $578 million, GT Advanced Technologies will deliver sapphire material to Apple Inc.

This matters to AKA because GT Advanced Technologies make sapphire material with one key ingredient: High Purity Alumina (HPA) – which AKA can produce.

This sapphire material has already been utilised in some components of the iPhone 5 – with a firm investment like this, it’s a strong indicator the market will only see more need for sapphire and its key ingredient, HPA.

And whatever Apple Inc. do, the rest of the market tends to follow.

Whilst no production volumes have been discussed, making such a firm financial commitment is a strong sign that Apple sees industrial sapphire as an important element of the next generation of consumer gadgets.

Apple Inc. have been front runners in technology for decades, and with this direction towards ultra-tough scratch resistant screens, it’s likely that all the other smart phone and tablet makers will follow suit. AKA plan to serve exactly this market.

This is likely to open up major markets and create increased demand of AKA’s highly valuable product.

AKA is confident that, subject to optimisation test results, its kaolin to alumina processing technology will be able to produce HPA with purity levels of not only just 99.99% (4N) but potentially 99.999% (5N) and 6N as well.

The higher the N value, the higher the purity. And the higher the income stream.

4N HPA is a high-value product used in smartphones, tablets and computers markets and AKA is already producing commercial samples. 4N HPA sells from anywhere between US$30/kg up to US$300/kg, depending on a number of characteristics.




more at link:

http://www.nextminingboom.com/global-smart-phone-makers-desperate-for-unique-ingredient-tiny-asx-company-to-supply/?utm_campaign=AKA-UA3&utm_source=SD&utm_medium=edm&utm_content=20140307