Was having an interesting little conversation with a tile/paver company today and thought I'd pump them re their knowledge on Gres technology Vs terracotta/ceramics.
The general gist of the conversation was that unless the customer is adamant about the red rough look of terracotta the Gres technology is taking over from the older technologies RAPIDLY.Gres ceramic technology gives a much higher quality tile that is less porous(and therefore much less suseptible to water absorption,swelling etc)
So why the hell am I talking about renovation stuff.
Well Gip has stated that they have MOA in place with a Euro consortium that is very interested in their high grade feldspar.These guys DONT muck about.They want it in large quantities and the quality has to be high to be applicable to the Gres technology.And Gip has it in truck loads as a major bi-product from their tantalum/tin operation.
If it hasnt been explained adnauseum before,this feldspar has the ability to DOUBLE the revenue from Abu D and hence increase the NPV of the operation by multiples.
This increase in demand for Gres has not been forecast to increase meaningfully until the end of this decade,but with such a huge shift in tile manufacturing to the Gres process already one wonders if an official off-take may be a bit closer than first thought.
However they still have to get the tantalum/tin operation running first then will bfs the feldspar process presumably on confirmation of the off-take.
Cant be far from some initial results from Seiga as well.
d.
AR1 Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
