Australian Bauxite Limited released third-quarter results yesterday. The report showcased the firm’s continuing uptick in sales and production.
According to the report, current group available cash is approximately A$2.4 million, plus available lines of credit in the event further working capital becomes necessary. The firm says it does not plan to raise capital in the near future, however.
Sales to date of bauxite ore total over 42 million metric tons of cement-grade ore, and 2,085 metric tons of fertilizer-grade ore. The stockpile of bauxite ore at Tasmania’s Bald Hill Mine is over 33,000 metric tons of cement-grade ore, all of which it is holding for another two sales. Two of the firm’s customers have operated their cement kilns non-stop at maximum output for half a year using exclusively ABx material, and three more potential customers are testing the firm’s bauxite prior to negotiating for a sale of same.
The press release goes on to describe a resource upgrade of over five times the initial estimated amount at the Fingal Bay bauxite project in Tasmania – the new estimated total of bauxite is 6.3 million metric tons, raising ABx’s bauxite total in the state to 14.7 million metric tons and a total for the region of 124 million metric tons.
ABx also touts its second shipment, which was completed in the quarter. The 36,000 metric ton shipment was loaded in a record time, shipping out of Bald Hill, the first new bauxite project on the continent in over three and a half decades.
Finally, the firm describes its relationship with Rawmin, with whom it is partnering in talks with several customers in the Mideast and Europe. The two companies are in negotiations with those as yet unnamed customers for five-year contracts to sell “large tonnages,” with Rawmin’s supplies in mines in India allowing ABx to contend for such contracts while ramping up its own production capacity.
Going forward, ABx posits that the markets for both cement- and fertilizer-grade bauxite is increasing, while that of metallurgical-grade bauxite is in oversupply.