Orbite Falls to Two-Year Low on Equipment Delay
Orbite Aluminae Inc. (ORT), the Montreal- based company seeking to extract alumina and rare-earth metals without toxic residue, fell to the lowest in more than two years as equipment delays threaten production goals.
Orbite dropped 22 percent to C$1.07 at 10:56 a.m. in Toronto, the lowest intraday price since Jan. 18, 2011. Trading, which was halted because of the decline, is expected to resume today, said Jason Morley, an Orbite spokesman who works for Stanton Public Relations & Marketing.
A delay in receiving equipment to process minerals into aluminum means the company will not meet production goals and may not generate revenue until next year, said Luisa Moreno, a Toronto-based analyst at Euro Pacific Canada Inc. The company, which has declined 56 percent this year, reported no revenue for 2010 and 2011, according to data compiled by Bloomberg.
“They’re probably only going to be able to reach commercial production by the end of this year or beginning of 2014,” Moreno said by phone today. “I assumed now there’s not going to be any revenues for this year.”
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