VAN 0.00% 4.7¢ vango mining limited

value of ord's share of the in ground bauxite

  1. 978 Posts.
    With regards the validity of my figures in the Bauxite to Aluminium conversion for the Laos project posted yeaterday, the 2006 ORD ASX announcement (23/10/06) provides some insight into what the company thought it would be then:

    "ORD estimates an annual production of up to 20 mtpa (million tonnes per annum) of bauxite from the Bolaven Plateau is possible, which may be refined to 5 - 7 mtpa of alumina".

    That is, 20 million tonnes bauxite produces approx 6 (5-7)million tonnes alumina (which produces approx 3 million tonnes Al (since Alumina consists of approx 50% Al)

    Therefore at the current approx value of $2400 per tonne for Al, the value of bauxite will be approx $340 per tonne - which is not too far from the figure I estimated in yessterday's post which I've reposted below FYI.

    Here is yesterday's post: Note this is simply the estimated value of ORD's current share of the bauxite in the ground in the Laos tenements so far, and NOT the net value after all the costs have been subtracted!!



    My calculations on the value of ORD's share of the 130 million tonnes JORC resource bauxite in Laos project so far:

    Total bauxite JORC=130 million tonnes

    Therefore ORDs share (approx 25%) =32.5 million tonnes bauxite

    And, since spot price Aluminium =$2368/tonne

    Then equivalent price Alumina =$1184/tonne
    (since Al is approx half the weight component of Alumina)

    Therefore equivalent price Bauxite= $395/tonne
    (Alumina is approx 1/3 (32%) of bauxite by weight )

    Thus the value of ORDs share of the total 130 million tonnes bauxite resource
    =32.5 milion tonnes x $395/tonne
    =$12,840 million approx


    Note again my disclaimer; I make no claim as to the accuracy of these figures; they are based on a number of assumtions.

    please DYOR

    cheers
    Birdseye


 
watchlist Created with Sketch. Add VAN (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.