logo-loader
viewBauxite Resources

Bauxite Resources' shareholders to get capital return

au_australiancash350_539f76a00fbbb.jpg

Bauxite Resources (ASX:BAU) will return $0.04 a share to shareholders by way of a capital return from its $42.1 million cash reserves as at 31 March 2014.

It is subject to shareholder approval but unlikely to brook any opposition.

Even after the capital return there would be a $31 million cash balance post capital return with no debt.

Which is sufficient for BRL to finance the development of its bauxite projects including the Fortuna deposit.  This is a development ranking project.

At the 100% owned Fortuna DSO bauxite project, the aim is to deliver a bauxite direct shipping (DSO) ore operation, which has a current resource of 39 million tonnes.

The current resource is located on two private landholdings 60 kilometres north east of Perth and 15 kilometres from existing rail infrastructure.

This is linked to the Kwinana port 120 kilometres away as well as the Bunbury Port approximately 250 kilometres away.

The Fortuna deposit is near surface and should be easy to mine. It is currently proposed that it will not require beneficiation and is located close to existing rail and port infrastructure.

Which should render Fortuna as a low capital expenditure start-up opportunity.

Resource upgrades over the past year at the Fortuna deposit along with a strengthening outlook for the bauxite market improves the project economics and therefore increases the likelihood of developing this resource.

The cash return is a positive for shareholders while enabling Fortuna to be developed given the strong market for bauxite at present.  We would expect BRL to firm today.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

Quick facts: Bauxite Resources

Price: 0.039 AUD

ASX:BAU
Market: ASX
Market Cap: $8.36 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Emmerson Resources discusses recent diamond drilling...

Emmerson Resources Ltd (ASX:ERM) managing director and CEO Rob Bills updates Proactive on the first diamond drilling activities at the Whatling Hill Project in NSW.  A 1,500-metre reverse circulation (RC) and diamond drilling program is targeting an interpreted porphyry copper-gold...

7 hours, 53 minutes ago

2 min read