Australian Bauxite on the march ... to Resources Rising Stars
The strong outlook for bauxite prices is fuelling investor interest in emerging producer Australian Bauxite (ASX: ABX), as shown by the rise in its share price from 17c in May to 26c this week. The company is preparing for first production later this year at its Bald Hill project in Tasmania, where the DSO-quality ore is expected to generate strong margins at current prices. See Australian Bauxite present at the Resources Rising Stars investor conference on the Gold Coast on September 30-October 1. To see which other companies are presenting and to secure your free seat, go to www.resourcesrisingstars.com.au But if widespread forecasts for sharp increases in bauxite prices are realised, the Bald Hill margins could become seriously juicy. All this bauxite bullishness stems from, not surprisingly, China, which analysts say is sucking in about eight million tonnes of the stuff each month to feed its surging aluminium production. And if this isn’t enough to get the bauxite bulls’ pulses racing, the technological breakthrough in the car industry last year is sure to. Known as the “wonder weld”, it is expected to see car manufacturers use more aluminium in vehicles to lower their weight. Broker Fat Prophets, which is a fan of Australian Bauxite, says the company aims to almost double total resources along its east coast projects to 200Mt. “Tasmania is only the starting point for bauxite production, with the company planning to have four main regions in production by 2019,” Fat Prophets says in a research note. “Binjour in Queensland is planned for start-up in 2018 for one to five million tonnes, with Goulburn South in NSW in the same year for one to two million tonnes. Finally, Goulburn North in NSW with a start date of 2019 for two to three million tonnes.”
http://resourcesrisingstars.com.au/infopage/5329
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