Everyone across all of the various hot copper boards have been uniformly very helpful to me in my research so far and I would like to thank each and every person who has taken the time to respond to my questions in such a kind and generous way.
I have spent a lot of time until very late last night reading up on the information that has been given to me, but there is still so much more to do. To those of you that I said I would get back with additional questions today, please forgive me if this does not happen. It is not that I am no longer interested, quite the opposite in fact, it is simply that I am accumulating more information to read through and study than I have hours to do it in. I will get back to you as soon as I can I promise.
So far I have received the following information. This is not listed in any order of importance, as I am not yet clear what the order of importance is.
1. There is a significant difference in value of the bauxite produced dependent on :
a) The total amount of Aluminium available
b) The amount of Aluminium that is extractable
c) The Low total of silica
d) The Low Reactiveness of the silica
e) The moisture level of the ore
f) The organic content of the ore
g) Whether or not the ore contains deleterious elements
2. There is a significant market cap impact based on a company having the following elements completed, some of which may take months or even years to do, and the further along each path a company is the better:
a) Jorc Reports – Inferred and Indicated
b) Jorc Reports – Probable and possible
c) The production of a pre-feasibility study
d) The production of a full feasibility study
e) The raising of capital to build the mine
f) Having the bauxite analysed by potential buyers and potentially signing a Memorandum of Understanding with the aforementioned buyers.
g) Actually producing the bauxite
3. A very important factor is the cost of the bauxite to mine. If this cost level is too high then the project may be permanently mothballed.
4. I should analyze and then evaluate each stock by it’s enterprise value as a method of assessing it’s potential future worth, especially if I am not looking to buy and hold for an extended period of time.
5. Sometimes the value in a company is proving up the exploration asset and then selling it to a bigger company instead of taking it through to production.
6. Net Present Value (NPV) is a very useful method of working out the potential future value of the company and whether it is worth buying into or not. I should try and find a respectable source for an NPV for each company I am looking at.
7. If a company has more than just bauxite projects on its asset list. This may help spread the risk and increase the potential for profit.
This is where I am up to at the moment. If anyone has the time to look at this list and let me know anything else I have missed out or enlighten me on the order of importance then it would be much appreciated. However, I am very aware that I am asking a lot of questions and taking up a lot of people’s valuable time so if people do not feel like answering I will understand and just keep researching on my own.
Thank you all very much for your help. I hope to be at a stage to decide where to invest my funds at some time next week.
Gunslinger-SA
PBX Price at posting:
4.7¢ Sentiment: None Disclosure: Not Held
