Fabrice Taylor Orbite Aluminae ORT-T DON'T BUY Jul 23, 2014

Historically he has been short. Would not buy at this point. Doesn’t think the processes will be economic.

This is a company that has new technology that is supposed to be great, but has a financing issue. He is very skeptical.

(Market Call Minute.) They continue to develop their alumina plant in Québec. Have an offtake agreement which is a positive. Stock continues to be under pressure.

They basically take clay and extracts alumina from it. There is a problem with red mud which they are looking to treat at an existing location. Thinks there will be a plant built and coming into production in the middle of next year. They are currently in a round of financing. This is extremely early, early days for a new technology. If it is successful it will have great opportunities. He owns some warrants related to the stock.

Hasn’t looked at this in a very long time. A name that has been long on promise and short on delivery. He gave up on this many years ago.

Hasn’t liked this company for many, many years, back in the $4-$5 range. However, to give them credit, they are moving along. They had a big financing issue and had to raise money. Now things are looking much, much better because they are much closer to production. This is in a “wait and see” zone, but he thinks the worst is over.

The story was that they were going to be able to extract alumina from clay that was in a region around Québec. Spent about $45 million building a plant, but it didn’t work as advertised. New management was swapped out and they spent another $20 million whipping it into shape. They are going into commercial production of extremely high purity alumina, which is used for LED light bulbs, etc. An interesting market and will be profitable, but the real key is taking that technology and using it on red mud. They are also looking at using the same process to potentially extract scandium, an extremely rare metal of extremely high value, plus other rare earths. We’ll probably know by the end of March if the commercial method is working. He owns the warrants.

They are looking at extracting a number of materials from Quebec clay and are currently importing alumina from the Caribbean to be converted in plants here. If they can bring their process to market for treating ‘red mud’ it will be a real benefit to the stock price.

(Market Call Minute.) They have a new technology for extracting alumina. Thinks it is interesting, and is trying to buy some of their debentures. Riskier, but thinks you will be okay