PEA - Orbite Aluminae Inc.

Figure 19-11 Iron Ore Monthly Price (107)
The above chart translates to a 2-year average selling price of $158.16 for 2010 and
2011. As the final concentration of iron in Orbite’s hematite will be over 99% (52) , a
calculation based on the prorated iron concentration of Orbite’s 99% purity hematite
translates to a selling price of $252.55/tonne. This figure correlates well to confidential
information obtained from a producer of 99% pure hematite.
Furthermore, Goldman Sachs and Partners Australia Pty (“GSPAP”) recently
forecasted (108) for the ore at 62% iron concentration, an average selling price of
$150/tonne for 2012, $165/tonne for 2013, $150/tonne for 2014 and $120/tonne for
2015 driven by the concern that Brazil, the second biggest exporter will have lower
than anticipated supplies.
The calculation of the reference scenarios were performed using an average selling
price of $200/tonne. The sensitivity analysis in Chapter 22 will have a range of
+/- 40% or a range from $120 to $280/tonne.
Oribite could also potentially a higher price market for part of its hematite since its
purity will be in the 99%+.
19.11.3 Silica Price Assumptions
Orbite’s process is expected to produce 1.23 million tonnes of silica having a purity
>95%.
Orbite Aluminae Inc.
ROCHE/GENIVAR
061364.002/111-20434-00 May 2012
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