Orbite Technologies shares down nearly 8% after construction update

Orbite Technologies Inc. is the second most active on the TSX and down nearly 8% after it reported that a dispute, now resolved, with one of its contractors will push the end of construction of its HPA production facility and start of commercial production into Q1 2016. An Orbite contractor, in breach of the contract between the parties, withheld from release to Orbite certain parts and equipment in its possession, which are critical to the completion of the calcination system assembly. However, a settlement has now been reached; the equipment was released on December 14th and has arrived in Cap-Chat.

In spite of this, construction in Cap-Chat progressed well, albeit the installation of certain systems and piping is possible only subsequent to installation of the released equipment. Following the dispute settlement, it was determined that working through the Quebec end-of-year construction holiday (December 18th -Â January 3rd) would not result in commercial production prior to year-end. Furthermore, the construction industry overtime costs associated with working through this period are such that this was deemed a non-beneficial use of funds. Orbite personnel will however continue with commissioning activities, and notably will be proceeding with the cold start-up testing of the calciner and related acid capture system during this period.

The stock is down 2.74% or $0.01 after the news, hitting $0.355 per share. About 1.13 million shares traded hands. Orbite Technologies Inc has risen 48.00% since May 14, 2015 and is uptrending. It has outperformed by 50.26% the S&P500.

Orbite Aluminae Inc. is a clean technology mineral-processing and resource development company. The company has a market cap of $136.32 million. The company’s proprietary processes and technologies enables the production of products, such as high-purity alumina , silica, hematite, magnesium oxide, titanium oxide, smelter-grade alumina (SGA), as well as rare earth (REO) and rare metal (RMO) oxides, from a range of feedstock’s, including red mud, fly-ash, aluminous clays, mine tailings, bauxite, and kaolin clay without generating red mud waste or tailings. It currently has negative earnings. The company’s portfolio contains 15 intellectual property families, including 15 patents and 102 pending patent applications in 11 different countries and regions.