APG 0.00% 0.2¢ austpac resources nl

how long in the fridge, page-4

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    Hi all,

    I have just finished reading the prospectus that can be found at the Iluka Website......dated 19/3/08.
    It's pages 108 to 122 that interest us....."Mineral Sands Overview"

    Salient points:-

    Iluka...produces synthetic TiO2 feedstock between 88 % and 95 % grade....527 K/t which is 66% of world output.They also produce Rutile,Chloride & Sulphate Ilmenite which are part of the same market.

    Their standard pricing grade is 92.5 % for which they
    have pricing power and able to lift prices > 2.5 % yearly.

    The market is considered to be expanding slightly greater than the 3.5 % long term average.

    Amazingly the prospectus does not consider APG exists and therefore not a competitive threat.

    BUT the BEST news concerns zircon.

    Strong growth @ 4.5 % (2 X normal) predicted right through to 2015.
    While zircon prices have surged recently......Iluka expects the recent long term average (4.5 %) to hold as a minimum.

    In my humble opinion we will therefore see a positive Australian Zircon feasibility study and APG will process the ilmenite from the WIM 150.
    They supply into China and that section of the market demand is up 15 %

    Forget the food....make space for some Matuse Sparkling Rose

    Think I'm showing my age with that one.
 
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