Summary on the back of our 4 consecutive good Anns.

Just a quick summary for anyone new to ABx or wanting to refresh themselves on the current situation. ABx is currently operating on developing its own specialised bauxite form the Tas mine, for cement and fertiliser supply- also waiting for the decimated Aluminium supply industry to recover from a glut of Malaysian cheap bauxite so that ABx can supply huge quantities to world bulk markets. (Possibly years away)

Q4 cash flow displays cash to reopen (next week) and run Bald Hills Mine Tas, continue research and development via TAStech, and develop QLD tenements; to give us scale that will compete for bulk shipments even in depressed bauxite market, as we have seen over the last 18 months. No debt to repay this FY means no pressure or risk, just potential continued upside from the specialised market we already are accessing.

Left out of this quarterly is $2mil+ receipts, and I am expecting two new customers this C.Y., possibly this quarter; so next quarter's report is gonna be very very good. Management have consistently announced realistically (a little too conservatively IMHO), and have expressed confidence in the last three Anns, that auger well for us based on their recent history of how predictions seem to be understated. Their most recent report demonstrates further quiet confidence in marketing and dvelopment of new clients from TAStech. It seems that has TAStech ahs a high retention of sales once samples get tested by prospective clients.

On top of the three specialised customers I predicted one month ago, there is GOOD potential for that customer base to be exceeded this year. This little baby is just gonna keep kicking goals at a nice steady rate this year, and IMO we can expect to see the same steady increase in company valuation, to the point where serious investors start allocating our 120 million tonnes JORC reserve ( legislated reporting and measured ore to within 5%) a book value unmined. (Note: ABx has inferred resources beyond this 120 million tonnes, that haven't been confirmed in amount or estimated mining costs).

As I ahve stated previously, I tisk ABx is very undervalued, the Enterprise Value is aout right but assumes only past performance, not teh value of teh asset and the pattern of growth management ahs demonstarted.

What we are waiting for to fully that reserve, is a demand market that allows for huge bulk exports.

Management has expressed earnings targets of $20 per tonne for bulk supply, and "in confidence" profits for TAStech specialised baux that exceed that.

Ann 28/7/16 "A multi tonne cement grade bauxite sample will be assembled in early August..." Samples are transported at buyers expense, so bulk samples; (the second sample a customer has testing done on, which is actually a bulk product mixed into their final product), I assume as repeat customers.

There are some signs, however that bauxite may recover soemwhat, whilst I am still not banking on it in my invetsment decisions, tehre is that multi-bagger potential if Indonesia and Malaysia don't resume the madness from the last 18 months supply. Which is doubtful, but we have competition from Rio and Alcan as exporters so maybe the balance means that hopes for bulk shipments are kept as speculative "bonus" in claculations until development of QLD in 2017 gives us more market power..

Our first customer is performing as beyond the expectations of the first Ann in May, and as I predicted- buying more than the initial order, so I am assuming the orders are in response to a big contract recently obtained.

The specialised product market is moving along very, very nicely. The product is based on repeat customers. 3 customers was my CY2016 target, and that is pretty much in the bag.
What the specialised bauxite product is:

http://bauxite.world-aluminium.org/refining/energy-efficiency.html

Aluminium is an “energy bank”; most of the original input can be recovered every time the product is recycled.
Bauxite mining requires relatively low energy inputs, compared to other steps in the aluminium production process – with less than 1.5 kilograms of fuel oil (mainly in the form of diesel for haul trucks) and less than 5 kWh of electricity consumed per tonne of bauxite extracted.
The bauxite refining process requires significantly higher energy, primarily in the form of heat and steam; natural gas, coal and oil are the main fuel sources and are combusted on site.
The energy required by the Bayer Process is very much dependent on the quality of the raw material, with böhemitic or diasporic bauxites requiring higher temperature digestion, often associated with a higher fuel input. Investments in cost effective technology upgrades at existing facilities can improve the energy efficiency with no change in input material, as can “sweetening” of the feedstock with small quantities of higher quality bauxite. Such improvements, along with the addition of new, best available technology, refining capacity has driven an almost 10% improvement in global refining energy efficiency in just 5 years. Today, the average specific energy consumption is around 14.5 GJ per tonne of alumina, including electrical energy of around 150 kWh/t Al₂O₃.

The way I understand it, ABx is using their in-house R/D "Tastech", to create specialised bauxite that meets customer conditions that result in reduced energy inputs ($) and time savings beyond the already advantageous calcine bauxite parameters. The basic levels of this process have delivered cement/fertiliser grade sales to date by tailoring the Al:Fe content ratios. This means cutomers get a blend cement blend that has strength/thermal characteristics suited specificall to purpose and geagraphical conditions insteadi of buying bauxite with the Fe removed then buyng Fe (iron) separately and re-inserting into the mix. This emans cost savings in not doubling down n the iron conent, less storage reuirements (no need for an Fe stockpile), less equipment reuqirements and time savings.

There is potential for that clientele base to be increased into other industries (as I outlined in other thread), providing a premixed base for other specialised materials.