Orbite Provides Updated, Increased Capital Cost, Longer Timeline Estimates for HPA Plant; Shares Fall 10%
Orbite Aluminae Inc. (ORT.TO) is down 10% to 79 cents in morning trade, with more than 2.25 million shares changing hands.
The company yesterday reported updated capital cost and timeline estimates for completing its high-purity alumina (HPA) production plant in Cap-Chat, Quebec.
The HPA plant is now expected to cost $105.9 million (or $75.9 million net of RITC), which represents an increase of $20.9 million to the estimate provided in the December MD&A and includes $6.7 million in contingency and critical spare parts.
The updated capital cost estimate represents the investment required to achieve the Phase II production capacity of 3 tonnes per day. A large portion of the HPA plant has been designed at a 5 tonnes per day capacity, and as such, the requisite engineering analysis to increase the total plant throughput to 5 tonnes per day, as well as to add a scandium and gallium separation facility, is expected to be completed during the second half of 2013 and the incremental capital cost estimate is expected to be reported during the first quarter of 2014.
Orbite is also updating the anticipated project timelines for achieving the Phase II production capacity of 3 tonnes per day to the end of the second quarter of 2014, representing a delay of approximately 6 months from the previous estimates.
Orbite has also appointed Denis Arguin as Vice President Operations.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.