Lindian Resources (LIN) is a new story. It is a “fresh horse” in Guinea, one of the best places for world class bauxite projects. Admittedly, we haven’t had much time to flush out all the negatives yet and there is a learning curve ahead of us, but its project has something exceptional about it; grade. (LIN – Far East Capital)
A bauxite project needs to tick three main boxes before it can be taken seriously as a real contender.
The first is geopolitical suitability. In recent years Guinea has been behaving much better on this front with the development of 10-18 Mtpa projects.
Next, it needs to be in the lowest cost quartile to have any chance of financing. It needs cash operating cost in the order of US$25 pt f.o.b.
Finally, and this affects costs, it needs to have strong grade. Gaoual is looking as if it may have the best grade possible.