Orbite Aluminae (ORT-T)

(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

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.

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.

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.

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.

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.

Never really liked this. Has been a winner for some people if they get in and out at the right time. Not sure that their technology works.

(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.

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

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

Has finally come to believe that this is a good company. Didn’t like it at $3-$4. Now that Rusal and Veolia are in the picture, as well as a deal with Glencore to buy the offtake, he feels this is a positive.

She had been waiting for an offtake agreement for more than a year and they have just announced one, however there was no terms announced on the deal so it could really mean anything. Price of high pure aluminum has come down drastically. Cost of production as well as capital project has gone up. Economics for this project overall has slimmed significantly. To her, this is a “show me” stock.

Another 52 week low again. Have a process that converts clay to alumina. Can’t understand the process so he stays away from it. Jury is out on whether it will work.

He is Short this one. Has traded around this, only from the Short side, over the past 3 years and has been pretty successful. Company still has to prove the scale that would be necessary to take their process into full commercial production where they are delivering large amounts of refined ore. This process is going to be more difficult and more costly than they have been saying. 2 things would make him cover his Short position. 1. If there was a big positive fundamental change occurring in the company and they can prove, with big deliveries, that this process is working and economic. 2. If in general he felt the stock was really oversold.

Very exciting that they have commenced production. Watching the stock very closely but would want to see if they can have offtake contracts or some kind of marketing agreement put together. Stock has acted very well on the announcements. If it breaks out from these levels, it will probably be based on some very positive catalysts, and the stock will be a Buy.