ABx Group (ASX: ABX) – Alcore and REE
COMPANY SCOREBOARD
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ABOUT COMPANY
Australian Bauxite (ABX) (http://www.australianbauxite.com.au/) engages in the exploration, development, and production of bauxite resources in Australia. It holds interests in 10 bauxite tenements covering 700 km2 located in NSW, QLD, and TAS; and the Bald Hill bauxite mine project at Campbell Town in northern Tasmania. It also explores REE in north TAS.
CAPITAL STRUCTURE
| ASX Code | Share Price | Shares | Option (In) | Market Cap | Cash/Asset ($m) |
| ABX | 0.048 | 250040314 | 12001935.072 | 1.5/25.5 |
| Holders No | Top 20 (Cur) | Top 20 (Pre) | Director Hold | Performance Right | Note |
| 2448 | 30.42% | 28.29% | 5.23% | last raise $1.5m@8c+12cOpt; pre raise $4m@10c+20cOpt |
Bauxite business’s 50% interest worth $18m.
COMPANY ASSETS
The company’s main business, namely selling bauxite, doesn’t make any money. Its core asset is the 87% owned subsidiary ALCORE limited (Alcore), which produces AlF3 from low-cost raw materials, including recycled aluminium smelter wastes. Alcore will be Australia’s first producer of aluminium fluoride AlF3 which is an essential strategic ingredient in Aluminium Smelting. There are no substitutes.
In April 2022, the company has been granted $7.5m (received half) from the Modern Manufacturing Initiative program to support the proposed $16.4m aluminum smelter recycling plant in TAS.
REE project TAS
The current released TREO grade is low (i.e. sub 700ppm and sub 20% Nd2O3 composition)
The company claims to have 31.3km2 REE extension areas.
Bauxite Business
After 18 months delay, in February 2022, the company signed the Sunrise Bauxite JV agreement where the JV partner, Alumin Pty Ltd, will contribute $18m to earn a 49.9% interest. the funding expects to cover all operational costs.
The Tas operation plans to start in Q3CY23, QLD in 1H25.
SUMMARY
The company placed a fair bit efforts on the low-grade REE project as if the Alcore asset doesn’t have much commercial value.