Sydney’s Australian Bauxite Limited released results for the first half of 2016 on Monday. The firm turned in significantly better numbers in the half compared to the first half of 2015.
ABx reported a revenue for the half of just under A$4 million, an improvement year-on-year from last year’s total of A$911,098. The firm’s profit for the half was A$534,340, also up significantly from 2016’s first-half loss of A$975,219. The firm’s investors saw earnings of A$0.38 per share for the half, besting last year’s first-half loss of A$0.69.
It’s little shock that Abx’s numbers are significantly better this year, as the firm has been making strides in several different areas of the business. After deciding to suspend operations at its Bald Hill bauxite mine on account of an oversupply of the ore coming from Malaysia, the ongoing ban on bauxite mining by that country’s government came into effect. As a result, ABx was able to sell the entirety of the 40,000 metric ton cement-grade bauxite stockpile at Bell Bay.
As the Malaysian bauxite ban was in effect for all but the first fourteen days of the half, ABx reopened Bald Hill ahead of schedule and is in talks with “several repeat business customers” for long-term bauxite contracts. The firm says it is also contemplating opening a new mine at Fingal Rail ahead of schedule.
Going forward, the firm expects to see results in the coming months from the aforementioned Fingal Rail site, especially after making the announcement late last month that the latest estimates placed the total tonnage available at the site at 6.3 million metric tons, which is over five times greater than the original estimate.
The firm also sees the demand for cement-grade bauxite trending upward. ABx says it is poised to meet demand via a specially-tailored bauxite product that is intended for high-temperature kilns. The firm said it will concentrate upon cement-grade, fertilizer-grade, and various non-metallurgical bauxite until the demand for metallurgical bauxite stabilizes.