Ann: Brief Update , page-82

I am not sure I understand. You appear to be quoting Aluminium prices (metal). ORD (SARCO) would have to build a smelter to deliver such product. This is 5-6+ years down the track.

ORD is planning to construct a refinery to produce alumina, which is an input into aluminium metal. Aluminium oxide (Al203) = alumina.

Cut-off grade (COG) is the level of mineral (alumina) in an ore (bauxite) below which it is not economically feasible to mine. Low or very low COGs - as in ORDs case (10%) - indicate high orebody utilisation (efficent), high payability, low grade, low development costs and low selectivity. This is why I have purposely singled out ORD as the commercials are the best of the bunch.

The selection of the appropriate COG is based on operationsal costs, price, yield or recovery, grade and about 20-other considerations.

The average available amount of alumina in the 187mt of ore is about 26%.

These factors need to be understood, otherwise I would just go across to ABZ and buy into 40-50% Al203 (very high grade and rich bauxite) @ 30+% COG (lower utilisation). Their bauxite has around 3.5%RxSi02 (reactive silica) meaning harder and more expensive to heat/separate and refine to alumina.