AWAC (AWC owns 40%) had a record production of 15Mt for the 2010 financial year. 3.8Mt for the March quarter.
- Alumina price:
Published spot and index alumina prices have averaged US$392 per tonne for the first quarter and are currently US$407 per tonne.(Referring AWC 1st quarter report)
Although a bit early to compare ORD with AWC, just wanna put some simple factors to get a rough idea what potential ORD will have.
5. ORD Vs AWC.
5.1 Long-term production: - AWC: 6Mt alumina - ORD: 2.6Mt alumina (average of Stage 1 and Strage 3) - Providing ORD get 34% of SARCO post-IPO, production will be reduced to 0.78Mt (Although it sounds bad, in fact ORD is more likely to get "free carry interest" because of no/less dilution on our ordinary shares - 30% comes from IPO & 70% borrows from Chinese banks.
5.2 Market cap: - AWC: $5.5b - ORD: $0.038b
I don't wanna be too opmistic, but ORD does have huge potential on the Laos project no matter it is IPO or developed by JV.
The current management is on the top, Chairman has/had managed multi-billion large organisations, and they do deliver maximum value for our shareholders - Spending generous money to employ top counsulting company SRK, IPO advisor RBC, top accounting firm E&Y, BUT mean to themselves by moving office place to save 60% rent for us.
It is a very small amount of saving, but does reflect the management treat the company as they own.
The management is the key for a company to be successful.
VAN Price at posting:
8.1¢ Sentiment: LT Buy Disclosure: Held