Large Portions, I am getting truly sick of your downramping, especially on days when we receive a really good announcement. Can you name a single bauxite miner who managed to sign a profitable offtake agreement in the last decade? It looked like Metro Mining got there 5 years ago and then they were screwed over royally by their Chinese offtake partner and came within an inch of going bust. The Chinese now basically allow them to cover their costs but pretty much never make a profit. It seems almost impossible for a small player to make a buck out of bauxite mining in Australia using the traditional offtake partner model. Ian Levy decided not to sign an offtake agreement like that and risk being screwed over. He chose a different structure with an old Indian family run company. Binjour is very much alive and well but has been significantly delayed by Covid. The small sales to cement and fertilizer companies kept ABX alive and allowed them to survive for 5 years without raising capital. You have to give them some credit for that considering how many other small listed companies go cap in hand to shareholders on a regular basis.
I started buying ABX after Alcore was announced in early 2018. I agree it has been a long road. But Alcore is a genuine scientific breakthrough. My understanding is that Rio Tinto, who operates aluminium smelters all over the world, was also looking for a breakthrough in this area, and ABX beat them to the punch, and then extended that breakthrough to u=include the processing of the dross, the smelter waste product, that Rio cannot currently dispose of. The Alcore opportunity is massive and we have a pilot plant almost completed. Alcore too was massively delayed by Covid in its critical development phase. You can't just pretend that this pandemic didn't happen.
The ABX market cap is $23m. Its a joke! We have enough money in the bank to drill out this REE province. I for one certainly DO NOT want to see a low ball takeover bid in the next few months when this company could easily be worth $200m in 12-24 months, when Alcore, REE and Binjour will all be much further down the path to revenue generation. More patience is required, and if you can't manage that, bugger off and spare us your constant downramping. And if you're trading on your downramping, I hope someone catches you out.
ABX Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
