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1 Price Target: A$0.42/share The investment case for Metro is simple, ultra-low risk and potentially high returning. The company is fully financed and has begun construction of the 6Mtpa bauxite mine, Bauxite Hills. Located in the world class Weipa bauxite region in Cape York, Australia, the mine is due to come on stream in Q2/2018.

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In fact, the key raw material for aluminum is not bauxite but electric power, with energy costs accounting for a quarter of the cost of finished aluminum products. The aluminum industry consumers four percent of all electricity produced in the U.S. while accounting for only .5 percent of the GNP.

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dropped from 1.95 million tons at yearend 2013 to 1.37 million tons by mid-October, and the downward trend was expected to continue through yearend. Global inventories of primary aluminum metal held by LME-bonded warehouses decreased during the year to 4.51 million tons in mid-October from 5.45 million tons at yearend 2013.

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In this study the minus 1.5″ bauxite ore is ground to minus 3/16″ in a Steel Head Rod Mill operating in open circuit. The ore is ground wet with hot sodium aluminate liquor at a temperature of 110°C.

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