1. business and industrial
2. energy
3. electricity

ORBITE: A STRATEGIC GALLIUM
PRODUCER
Prepared by
Marcel Côté, Partner, SECOR
Guillaume Caudron, Senior Manager, SECOR
Kristy Wilson, Manager, SECOR
September 2012
Version 1
MONTREAL :: NEW YORK :: PARIS :: QUEBEC :: TORONTO :: VANCOUVER
TABLE OF CONTENTS
DISCLAIMER AND GENERAL INTRODUCTION ................................................................................... 3
Disclaimer ................................................................................................................................................ 3
General Introduction ............................................................................................................................ 4
The Study ............................................................................................................................................. 4
Methodological Framework ............................................................................................................ 4
Document Structure .......................................................................................................................... 4
1. EXECUTIVE SUMMARY ............................................................................................................... 5
2. GALLIUM 101 .......................................................................................................................... 7
What is Gallium? .................................................................................................................................... 7
Global Gallium Production .................................................................................................................. 8
Major Gallium Producers ................................................................................................................ 10
A Future North American Producer: Orbite Aluminae ............................................................. 10
Global Gallium Demand .................................................................................................................... 11
3. PRODUCT USES AND APPLICATIONS ......................................................................................... 14
Integrated Circuits ............................................................................................................................... 15
Optoelectronics ................................................................................................................................... 17
Photovoltaic (PV) Cells and Other Applications ........................................................................... 19
4. ORBITE ALUMINAE: POSITIONED TO BECOME A STRATEGIC LOW-COST G ALLIUM SUPPLIER........... 20
Orbite’s Unique By-product Recovery Process .............................................................................. 20
Production Estimates........................................................................................................................... 21
Capital and Operating Costs ........................................................................................................... 22
Orbite’s Capacity to Become a Strategic Player in the Gallium Market ................................. 22
5. CONCLUSION ........................................................................................................................23
ADDITIONAL INFORMATION ......................................................................................................... 24
ABOUT…...................................................................................................................................25
About Orbite......................................................................................................................................... 25
About SECOR ....................................................................................................................................... 25
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DISCLAIMER AND GENERAL INTRODUCTION
DISCLAIMER
Some statements contained in this document are forward-looking. These forward-looking statements relate to Orbite’s future
financial conditions, intentions, expectations, beliefs and operational or business results. These statements may be current
expectations and estimates relating to markets in which Orbite operates and assumptions regarding these markets. In some
instances, these statements require management to make assumptions, and there is a significant risk that these assumptions may
not be correct. The words “may,” “would,” “could,” “will,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “expect” and
other similar expressions, as they relate to Orbite or its market, often identify forward-looking statements. Such statements reflect
SECOR’s current beliefs and are based on information currently available. These statements are subject to important risks,
uncertainties that are difficult to predict, market versatility, and assumptions that may prove inaccurate. The results or events
predicted in forward-looking statements may differ substantially from actual results or events. SECOR and Orbite disclaim any
intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or
otherwise.
No reliance may be placed for any purpose whatsoever on the information and opinions contained in this document or on their
accuracy or completeness. No representation, warranty or undertaking, expressed or implied, is given as to the accuracy or
completeness of the information and opinions contained in this document by SECOR or Orbite, their respective employees or its
affiliates, and no liability is accepted by such persons for the accuracy or completeness of any such information and opinions.
Nothing contained herein can be relied upon as a promise or representation as to past or future performance.
Orbite’s Revised Preliminary Economic Assessment published on May 31, 2012 (PEA), is preliminary in nature and it
includes Inferred Mineral Resources of aluminous clay as they relate to alumina, metals oxides and earth rare elements that are
considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized
as Mineral Reserves. There is no certainty that the conclusions reached in the PEA will be realized. Mineral Resources that are
not Mineral Reserves have not demonstrated economic viability.
The information of a scientific or technical nature relating to the Orbite processes and mineral resources discussed herein has been
reviewed and approved by Denis Primeau, Eng., a “qualified person” pursuant to National Instrument 43-101 – Standards of
Disclosure of Mineral Projects (NI 43-101). Mr. Primeau is the Chief Engineer of Orbite, and as such, is not independent
pursuant to NI 43-101.
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Disclaimer and General Introduction…
GENERAL INTRODUCTION
THE STUDY
This study is an analysis of the global market for Gallium (Ga) and the opportunity it presents for Orbite
Aluminae. Orbite will produce gallium as a by-product of its alumina production, which uses a new
proprietary process to extract alumina from aluminous clay and various ores.
“Orbite: a strategic gallium producer,” is part of a series of five white papers. Topics addressed in the
additional four reports include:
High-purity alumina (HPA) market potential and Orbite’s competitive advantages

Orbite’s red mud remediation and mineral recovery process

Orbite: a strategic rare earth elements producer
Orbite: a strategic scandium producer

All five reports present a strategic view of the various markets and products Orbite is targeting and producing
outside of smelter-grade alumina (SGA), which has been fully covered by the PEA. 1
METHODOLOGICAL FRAMEWORK
Using existing studies, public data, reports from experts, and information and data provided by Orbite, this
white paper presents a point of view on Orbite’s gallium market potential based on collected data and
SECOR’s analyses. This study presents a strategic rather than technical point of view.
DOCUMENT STRUCTURE
This study consists of three sections:

An introduction to gallium that describes its main characteristics and gives an overview of global
production -- including major producers and consumers, as well as trends in demand and pricing.

A review of various end-uses and applications of gallium.

Orbite Aluminae’s product offerings and key advantages.
1
Orbite NI 43-101 Revised Technical Report, prepared by Roche and Genivar (May 30, 2012)
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1. EXECUTIVE SUMMARY
Gallium (Ga) is a rare metal extracted as a by-product of alumina processing. It is a strategic material used as
a semiconductor in various applications for a number of key industries, many of which are currently
experiencing rapid growth.

Gallium is produced in relatively small volumes worldwide, but leading producer countries such as China
plan to expand their production capacity.

Current production capacity is approximately 260-320 metric tonnes (mt)/year. China is by far the
largest producer with ~140 mt of installed capacity and significant expansion plans in progress.
– Various degrees of purity are needed for different applications of gallium. In most cases,
manufacturers use high-purity gallium 4N (99.99% purity) and then further refine it as needed to
reach the purity level they require.

Demand for gallium has greatly increased in the past 10 years due to the rapid growth of key end-use
markets. In 2010, an estimated 160 to 180 mt of crude gallium were consumed globally – despite the
economic downturn.

While recent large fluctuations in pricing have stemmed from an oversupply on the market,
independent pricing information has not been published since 2001 and price estimates vary widely.
– 4N Ga has ranged in price from a high of US$1,000/kg down as low as US$275/kg since
January 2011.


Gallium metal is primarily used as gallium arsenide (GaAs) and gallium nitride (GaN) in integrated
circuits and optoelectronics, which represent 69 percent and 30 percent of consumption respectively.

Gallium arsenide (GaAs) is an essential material in integrated circuits, used primarily in mobile
devices such as smartphones and tablet PCs.

Gallium nitride (GaN) use is growing for LEDs in liquid crystal display (LCD) monitors, laser diodes
in high-density data storage devices, and photovoltaic cells in solar panels.

Most of these end uses are experiencing significant growth, driving up the demand for high-quality
gallium, and this trend is forecasted to continue.

Gallium is considered a strategic metal by the European Union and the United States for its use in
electronics manufacturing, aerospace and defence applications, and for research and development.
Orbite would be the only crude gallium supplier in North America, offering clients a continuous source
of pure gallium and reducing dependence on Chinese imports.

Orbite would be a low-cost producer of gallium, as it is extracted as a by-product of Orbite’s smelter
grade alumina (SGA) production, the company’s primary product.

Orbite’s proprietary process allows the company to rapidly and efficiently extract gallium and rare
earth elements including scandium, further enabling Orbite to be a low-cost producer.

Orbite’s smelter grade SGA plant is scheduled to enter into production in 2014, and its design
capacity is estimated at ~91mt of high-purity gallium (≥99.99% or 4N) per year.

Orbite estimates potential annual revenues from gallium of between US$42 million and US$55
million at current prices. Orbite’s low-cost gallium production should also protect it from spot
market conditions, allowing it to operate as a steady supplier even under changing pricing
scenarios.The strategic location of Orbite’s first SGA plant, near the St. Lawrence River in eastern
Quebec, will give it easy access to primary markets, which in turn will allow it to provide a secure
supply of high-quality gallium and reduce dependency on Chinese producers.
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1. Executive Summary…

Orbite’s process is environmentally friendly, as it generates no toxic residues, avoiding disposal costs
and problems with hazardous material such as red mud, which results from alumina production
through the Bayer process.
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2. GALLIUM 101
WHAT IS GALLIUM?
Gallium (Ga) is a relatively common element, soft and white-silver in colour, with the atomic number 32. In
its pure powder form it has the exceptional quality of melting at just below 30ºC. It naturally occurs in trace
amounts as a chemical compound in the ore of various minerals such as bauxite, zinc, and coal. Gallium
content in bauxite is typically 50 parts per million. Economically recoverable reserves of gallium are rare due
to its low concentration. It is only produced as a by-product of the refining process of various metals, and is
extracted during alumina production from bauxite or during zinc residue processing.
There are various methods for producing alumina, and thus gallium. The most commonly used process is the
Bayer process, which begins with washing, crushing, and then dissolving bauxite in caustic soda at high
temperature and pressure. This produces a solution of sodium aluminate and non-dissolved bauxite residue.
The non-dissolved bauxite residue contains iron, silicon, titanium, aluminum and other elements in small
quantities, including gallium. This residue, called “red mud” is highly toxic and has a significant detrimental
impact on the environment.
BAYER PROCESS
Source: International Aluminium Institute
Orbite’s proprietary process for alumina extraction does not produce red mud. The Company’s nonpolluting technology recovers a very high percentage of aluminates from the feedstock, and also recovers
other minerals and metals that are left over from the alumina extraction process (by-products), including
gallium.
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2. Gallium 101…
Gallium extracted from bauxite or zinc residue is impure and must be further refined to the purity level
required for each specific application. High-grade gallium, which starts at 4N or 99.99% purity, is often
shipped in this form and then further purified by manufacturers in-house 2.
Gallium is primarily used in compound form. The two most common compounds, representing 98 percent of
consumption, are gallium arsenide (GaAs) and gallium nitride (GaN) 3. GaAs is a semi-conductor and that is
used for high-frequency electronics including microprocessors, integrated circuits, Wi-Fi chips, microwaves,
and lasers. GaN is used in light-emitting diodes (LEDs), and has been essential to the development of highbrightness LEDs. Demand for these applications has been largely driven by the growth of the market for
personal laptops, tablet computers, smartphones, and flat-screen televisions.
Other compounds include gallium phosphorus (GaP), used in optoelectronic components and integrated
circuits, as well as copper indium gallium selenide (Cu(Ga,In)Se2 or CIGS), which is being used more
frequently in photovoltaic applications. Overall, gallium’s unique characteristics and specialized functions
make it very difficult to substitute.
GLOBAL GALLIUM PRODUCTION
Global gallium reserves in bauxite deposits are estimated at over 1 million metric tonnes 4. There is also a
significant quantity to be found within the world’s zinc reserves. However, only a fraction of gallium reserves
are economically recoverable due to their low concentration levels and the high cost of extraction and
production. Therefore it is difficult to ascertain an accurate estimate of the world’s total economic reserves.
Gallium is produced primarily as a by-product of alumina production from bauxite, and the major bauxiteproducing countries currently include China, Australia, Guinea, and Brazil. Many known gallium-bearing
bauxite deposits will not be mined in the near term because they are not yet accessible.
Global crude gallium production capacity is estimated to be between 260 and 320 metric tonnes (mt) per year,
with 270 mt of refinery capacity and 198 mt of recycling capacity. The primary supplying countries of crude
gallium are China (141 mt production capacity), Germany (35 mt), and Kazakhstan (25 mt).
For optoelectronics 7N or 99.99999% purity is required, while for use in integrated circuits this can range up to 9N or
99.9999999%.
3 Primary end uses in the U.S. according to the U.S. Geological Survey.
4 U.S. Geological Survey (USGS), January 2012.
2
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2. Gallium 101…
GLOBAL CRUDE GALLIUM PRODUCTION CAPACITY
2010 Estimates, Metric Tonnes (mt)
COUNTRY
CAPACITY (MT)
China
141
Germany 5
35
Kazakhstan
25
Korea, Republic of
16
Ukraine
15
Japan
10
Russia
10
Hungary
8
TOTAL
260
Source: U.S. Geological Survey (USGS)
Actual crude gallium production was estimated at 215 mt in 2011, up from approximately 160-180 mt in
2010. If planned capacity expansions are completed, Chinese production could double by the end of 2012,
creating global concerns about an overdependence on Chinese sources.
Recycling is another significant source of gallium, with current global capacity estimated at 198 mt. There are
two sources of recycled gallium: pre-industrial and post-consumer. Pre-industrial waste or “process scrap” is a
good source of both crude and refined gallium since just 15 percent of input material is actually used to
manufacture consumer electronics. The remaining 85 percent is lost in production and some of it can be
recovered. Countries involved in pre-industrial gallium recycling include the United States, Japan, the United
Kingdom, and Germany. Post-consumer recycling refers to products at the end of their life cycle, but this
second source remains marginal as quantities are either too small or not easily recovered.
Recycling potential in China has not been ascertained, but high consumption levels suggest there is untapped
potential for secondary gallium.
5
Owned by the American company GEO Specialty Chemicals.
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2. Gallium 101…
MAJOR GALLIUM PRODUCERS
GEO Gallium of France, a subsidiary of GEO Specialty Chemicals, an American company, is the world’s
largest producer of refined gallium, and the world’s only fully integrated producer. GEO Gallium produces
crude gallium at its plant in Germany, which is then refined to the 6N and 7N levels in France.
Chalco, a subsidiary of state-owned Chinalco (Aluminium Corp of China Ltd.), is the world’s second largest
alumina producer. It is a smelter-grade alumina producer based in China, and a major producer of high-grade
crude gallium metal and gallium oxide (4N).
Japan’s largest producer, Sumitomo Chemicals, is a subsidiary of the Sumitomo Group that has a gallium
plant in Shanghai, China. Sumitomo Electric Industries, which is also part of the Group, uses this gallium for
the advanced electronic devices and components that it designs, manufactures, and sells. Another Japanese
player is Dowa Mining Ltd., a producer of gallium from zinc ore imported from its Mexican mine.
There are no crude gallium producers in North America, however there are a number of refiners and
recyclers. For example, American GMG Inc. (AGMG) is a refiner of high-purity metals, and a distributor of
compound semiconductor substrates including GaAs. The company also has production and research
facilities in China. Recapture Metals Ltd., based in the United States, is the primary recovered gallium
producer in North America with 50 metric tonnes of capacity. Its source material comes from customer
scrap, purchased pre-industrial scrap, and low-purity imports.
A FUTURE NORTH AMERICAN PRODUCER: ORBITE ALUMINAE
Orbite will be the only high-quality gallium producer in North America, with the ability to produce significant
quantities of ≥4N Ga. Orbite’s facilities, which will be located in the Gaspé region in eastern Quebec, will be
built near a 6,441 hectare property that holds a world class aluminous clay deposit. Its proximity to the St.
Lawrence River will also facilitate transportation to key markets, namely the European Union and the United
States.
Orbite will develop its own aluminous clay deposits using a highly efficient proprietary process to extract
alumina from the clay, as well as a series of by-product metals that are found in various concentrations in the
clay. Gallium will be one of the by-products along with several other rare earth elements including scandium.
Based on analysis of the clay deposit, Orbite’s annual production of gallium is projected to reach ~90 mt at
the SGA plant, which is scheduled to be in production by 2014. This assumes that the first of ten plants that
will each have 7,000-tonne clay feed throughput per day. Based on results from Orbite’s full-scale pilot plant
in Germany, recovery rates of over 91 percent are expected for gallium and other rare earth elements, which
would make Orbite a significant producer of high-quality gallium – behind China but ahead of Western
Europe.
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2. Gallium 101…
GLOBAL GALLIUM DEMAND
Although individual countries’ demands are difficult to ascertain, global consumption of crude gallium in
2010 was estimated to be between 160-180 mt, up 50 percent from 2006 6. The largest users are China, the
United States, Japan, and Western Europe.
The U.S. Geological Survey (USGS) tracks apparent consumption in the United States. In 1975, the United
States’ consumption of gallium represented around 70 percent of total global production, although volumes
were much lower. In 2010, the United States’ share of the world’s demand was down to about 18 percent or
33.5 mt, reflecting the growth of electronic manufacturing in Asia. The United States imports 100 percent of
its gallium and its primary sources, including recovered gallium, include the United Kingdom (35 percent),
Germany (24 percent), China (21 percent) and Canada (7 percent).
GLOBAL REFINED GALLIUM PRODUCTION VERSUS U.S. CONSUMPTION
1974-2010, metric tonnes (mt)
Source: U.S. Geological Survey (USGS)
Demand for gallium is expected to grow significantly due to increasing consumption of third and fourth
generation smartphones and high-performance electronics, applications that are linked to global GDP
growth.
That said, the current demand of 160-180 mt/year is lower than current production capacity of 260-320
mt/year, and this overcapacity in the market will impact pricing – although producers will likely monitor
supply in order to support firm pricing.
PRICING
While gallium producers usually set the price for the metal, prices are kept confidential under long-term
contracts, and pricing information has not been publicly available since 2001.
Based on available estimates (United States average import data), 4N quality gallium had an estimated average
selling price of US$307/kg in 2010 while ≥6N grade7 was selling at US$600/kg.
6
MineralInfo.org
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2. Gallium 101…
GALLIUM PRICES FOR VARIOUS PURITY LEVELS
2006-2010, US$ per kg
Source: U.S. Geological Survey (USGS)
Pricing for gallium can fluctuate significantly throughout a year. According to reports, there was an extreme
shortage in 2001 and gallium prices climbed to more than US$2,000/kg 8.
In early 2011, price estimates for 4N gallium reached highs of US$1,000/kg, but by December had dropped
to US$640/kg. As of July 17, 2012, prices had dropped further to US$350/kg.
DAILY GALLIUM PRICE ESTIMATES FOR 4N PURITY (99.99%), CIF*
March 1st 2011 – July 17th, 2012, US$ per kg
1,000
1,000
900
970
800
700
640
600
590
500
400
350
300
320 Low CIF (EU)
High CIF (EU)
200
100
0
Mar 2011
May 2011
Jul 2011
Sep 2011
Nov 2011
Jan 2012
Mar 2012
May 2012
Jul 2012
*(Cost Insurance, Freight) from Major Airport in EU based in warehouse Rotterdam duty unpaid Source: Metal Pages Inc.
7
8
US customs does not specify purity levels, so prices are only available for the average of all grades of purity level ≥6N.
USGS
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2. Gallium 101…
Over the past year there has been high variability in price; however, on a 3-6 month basis, prices have been
relatively stable. As seen below, delivered prices (FOB 9) from China are generally lower than CIF 10 prices
from Europe.
AVERAGE G ALLIUM PRICES (4N, 99.99%)
CIF MAIN AIRPORT (EU)
AVERAGE G ALLIUM PRICES (4N, 99.99%)
FOB (CHINA)
Last 12 Months July 17th 2011- July 17th, 2012, $US/kg
Last 12 Months July 17th 2011- July 17th, 2012, $US/kg
Low
High
Low
Median
High
Median
616
567
557
547
560
493
434
410
379
3-month
average
440
428
430
420
424
417
410
376
6-month
average
12-month
average
Year to date
average
361
350
360
346
3-month
average
6-month
average
12-month
average
Year to date
average
Source: Metal Page Inc.
Further softness in pricing is expected in 2012, but prices are likely to recover. This high variability in pricing
underscores the importance of being a low-cost producer in order to comfortably maintain consistent
production levels and minimize impacts of market conditions on production.
Free on Board: the seller/exporter/manufacturer clears the goods for export and is responsible for the costs and risks
of delivering the goods past the ship’s rail at the named port of shipment.
10 Cost, Insurance and Freight: seller/exporter/manufacturer clears the goods past the ship’s rail at the port of shipment.
9
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3. PRODUCT USES AND APPLICATIONS
Gallium is primarily used as a semiconductor in the electronics industry, and semiconductor market
performance generally relates to worldwide GDP growth. If the market recovery continues, then the
semiconductor industry should follow suit as consumer and commercial spending on devices grows in
response.
SEMICONDUCTOR INDUSTRY GROWTH VERSUS WORLDWIDE GDP GROWTH
1987-2013
Global GDP Growth
Global Recession Threshold
WW Semi Industry Growth
50
5.0
4.5
40
30
3.5
20
3.0
15%
2.5
10
2.0
0
1.5
-10
1.0
0.5
Semi Industry Change
Worldwide GDP Change
4.0
-20
0.0
-30
-0.5
-40
2013F
2012F
2011F
2010F
2009F
2008
2007
2005
2006
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
-1.0
Year
Sources: IC Insights
Semiconductors are used in a variety of sectors including telecommunications, medical equipment, aerospace,
and consumer goods. Almost all gallium consumption (~97 percent) is used in one of two compound forms,
gallium arsenide (GaAs) and gallium nitride (GaN), for two dominant applications – integrated circuits (ICs),
and optoelectronics. In the United States, 69 percent of gallium goes into ICs; another 30 percent is used in
optoelectronic applications, and the remaining 1 percent is used for research and development, and other
minor applications.
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3. Product Uses and Applications…
US Gallium Consumption by End-Use
2005-2010, Metric Tonnes
Source: USGS
INTEGRATED CIRCUITS
Integrated circuits (IC), or microchips, constitute the largest market for gallium in the United States,
accounting for 69 percent of consumption, or 23.3 metric tonnes. Over 90 percent of this is used in analog
ICs for sensors, power management circuits, and operational amplifiers in mobile applications for mass
market products such as smartphones and tablet PCs. There are no current substitutes for gallium that
provide the same level of performance.
US GALLIUM CONSUMPTION FOR INTEGRATED CIRCUITS BY END-USE
2010, metric tonnes, percent
Source: U.S. Geological Survey (USGS)
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3. Product Uses and Applications…
Demand for smartphones and tablet PCs, which rely more and more heavily on GaAs, is growing rapidly.
According to USGS, 4G phones require up to six times more GaAs than typical low-functioning cell phones.
SMARTPHONE UNIT SALES VERSUS SHARE OF TOTAL CELLPHONE SHIPMENTS
Q1 2009 – Q4 2011F
SmartPhone Unit Sales (M)
Smartphone Share of Total Cellphone Shipments
160
40
176M; +8%
465M; +64%
35
120
30
100
25
80
20
60
15
40
10
20
5
0
Smartphone Marketshare
Millions of Units
140
290M; +65%
0
Q1-2009
Q2-2009
Q3-2009
Q4-2009
Q1-2010
Q2-2010
Q3-2010
Q4-2010
Q1-2011
Q2-2011
Q3-2011
Q4-2011F
Quarter
Sources: Nokia, IC Insights
Smartphone sales increased by 65 percent in 2010 and by another 64 percent in 2011, compared to an 8
percent increase in 2009.
GLOBAL PC UNIT SHIPMENTS
2000-2015F
800
Tablets
766
Standards PCs
700
529
500
468
414
400
366
146
139
142
158
2002
2003
200
2001
300
2000
Millions of Units
643
2010-2015 CAGR
Total Units = +15.9%
Total Without Tablets = +4.6%
600
182
210
233
263
290
310
100
2015F
2014F
2013F
2012F
2011E
2010
2009
2008
2007
2006
2005
2004
0
Year
Sources: IC Insights
Sales of personal computers continue to grow, but future growth will be driven primarily by tablet PCs. The
tablet market has experienced strong growth in recent years, and this trend is expected to continue.
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3. Product Uses and Applications…
OPTOELECTRONICS
GaAs is also used in optoelectronic devices, which are divided into three main categories: LEDs, laser diodes,
and photovoltaic (PV) cells used in solar panels. Of those, LEDs and laser diodes account for 94 percent of
the optoelectronics market.
US GALLIUM CONSUMPTION FOR OPTOELECTRONIC DEVICES BY END-USE
2010, metric tonnes percent
Source: U.S. Geological Survey (USGS)
Light-Emitting Diodes (LEDs)
Both GaAs and GaN are used in LED technology, however GaN remains the dominant technology in highbrightness LED devices. Growth in this end-use is driven by increased demand for liquid crystal display
(LCD) computer monitors and LED-based backlit televisions. LED technology allows for the design of
thinner, lighter devices that consume less energy and offer greater colour saturation.
LED technology is also used in mobile display applications that are experiencing strong growth, including
mobile phones, notebook computers, tablets, eBooks, and MP3 players.
Given the recent advances in the field of high-brightness LEDs for the lighting, electric vehicle, energy, and
display application markets, it’s expected that there will continue to be strong demand for gallium.
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3. Product Uses and Applications…
GLOBAL TV UNIT SALES BY TECHNOLOGY
2004-2014F
300
OLEP
PDP
LCD (COFL)
250
LCD (LED)
CRT
RP
Million Units
200
150
100
50
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Source: Display Search – Quarterly Advanced Global TV Shipment and Forecast Report
Laser Diodes
GaN semiconductor material is used in laser diodes in a wide range of domestic, commercial, and industrial
applications across several sectors including medical technology, research, telecommunications, and
entertainment. Another common application is for the blue-violet lasers used for reading and writing data on
DVDs. There are numerous advantages to this technology including a wide range of power capabilities, high
energy-efficiency, high reliability, and ease of modulation for various applications.
Laser diode sales represent 50 percent of global commercial laser revenues or US$3.6 billion in 2011, up from
US$3.3 billion in 2010. Sales have been steady with a 1.8 percent CAGR since 2007. Diode sales for certain
applications also track GDP, and in turn, are driven primarily by economic conditions in the United States
and China. Since the economic recession in 2008-2009 it has been difficult to forecast sales for this segment.
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3. Product Uses and Applications…
GLOBAL COMMERCIAL LASER REVENUES
2007-2011E, $B US
2007-2011e
CAGR: 0.8%
6.84
3.49
6.54
7.05
2007-2011e
CAGR
6.37
3.45
Nondiode
-0.2%
3.25
3.60
Diode
1.8%
2010
2011e
5.00
3.27
3.12
2.45
3.35
3.27
2.55
2007
2008
2009
Source: LaserFocusWorld
PHOTOVOLTAIC (PV) CELLS AND OTHER APPLICATIONS
Photovoltaic cells in solar panels use mostly silicon-based semiconductors to generate electricity. Growth in
demand for this type of renewable energy has been stimulated by high energy prices and government
subsidies in North America and Europe. The solar panel market is dominated by crystalline silicon solar cells,
which make up 90 percent of the market. But recently, copper indium gallium (di) selenide (CIGS), of which
gallium is a key component, has made inroads as a viable alternative to crystalline silicon, along with other
substrates such as cadmium telluride. CIGS products have several advantages. They are lighter, more flexible,
require less energy to make, and have lower production costs than alternative solutions.
GaN technology is being used more frequently in power electronics, power management solutions, and radiofrequency electronics. This technology has advanced significantly due to use in military and defense
applications, as well as in the automotive, medical, and industrial sectors. In fact, power electronics associated
with electric cars may represent a significant growth opportunity.
GaN is also used in fuel cells to convert chemical energy into electricity through chemical reactions. Fuel cells
are used: in space programs to fuel probes and satellites; for back-up power in commercial and industrial
contexts; and in fuel cell vehicles (buses, airplanes, boats, and submarines). Consequently, gallium has been
indicated as a strategic metal for use in such applications by countries such as the United States.
Other applications of gallium, which represent less than 1 percent of current consumption, include use in
medical equipment such as medical imaging, low-melting point alloys in fuses for electrical devices, and dental
fillings.
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4. ORBITE ALUMINAE: WELL POSITIONED TO BECOME
A STRATEGIC LOW-COST GALLIUM SUPPLIER
Orbite’s principal product is alumina, and the Company has developed a unique proprietary alumina
production process based on hydrochloric acid leaching of aluminous clay that is more efficient than
traditional processes. In this non-polluting chemical process, the hydrochloric acid is regenerated and most of
the input material is transformed into marketable products. Compared to the traditional Bayer process,
Orbite’s technology is more cost-efficient and produces higher qualities of alumina in less time. Additionally,
it does not generate the toxic waste (“red mud”) that plagues the Bayer process. While testing this process on
aluminous clay, Orbite found that it also allowed for the recovery of silica, hematite, iron ferric oxide,
magnesium, gallium, and at least 11 rare earth elements for commercialization.
ORBITE’S UNIQUE BY-PRODUCT RECOVERY PROCESS
Orbite has developed an operational extraction technology and a separation process for rare earth oxides and
metals, including gallium, from aluminous clays and other aluminous ores. Gallium is recovered as a byproduct in the hydrochloric acid recovery step of Orbite’s process.
The process calls first for the leaching of the aluminous clay with hydrochloric acid, dissolving most metals in
the clay as chlorides. Aluminum chloride is then removed from the solution by precipitating it as aluminum
chloride hexahydrate and then calcinating it into aluminum oxide. Ferric oxide is then removed in a process
that also regenerates the hydrochloric acid for reuse in the leaching stage. What is left is a solution with a high
concentration of magnesium, gallium, alkalis, and rare earths oxides in the form of chlorides. Magnesium and
alkalis are recovered by precipitation, then gallium and rare earths and metals are recovered. The recovery rate
is impacted by the choice of solvents and the sequence in which these elements are recovered. Recent tests by
an independent third party mandated by Orbite demonstrated that recovery rates for rare metals and earths
will be 90 percent, and in some cases as high as 93 percent.
The Orbite process concentrates elements such as gallium in the solution as part of the hydrochloric acid
loop and facilitates their separation from other rare earths at an earlier stage in the process than in traditional
techniques. As a result, the process is faster and more economical for the production of gallium and other
commercial by-products than traditional methods. Consequently, revenue from the sale of these by-products
could offset almost 30 percent of Orbite’s total production costs.
Finally, it is important to note that the Orbite process can be used with a wide range of clays, as well as with
bauxite. In fact, it can also be used on existing red mud, which contains a concentration of gallium and rare
metals, rendering the toxic waste environmentally neutral while extracting commercially valuable products.
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4. Orbite Aluminae Positioning in the Gallium Market…
ORBITE’S PATENTED PROCESS
Aluminous clay
Clay preparation
crushing & grinding
HCl
HCl
Acid leaching
Filter silica
Metal-rich liquor
Al, Fe, etc.
HCl
HCl
Precipitation
AI CI 3 6H20
AI CI 3 6H20
Iron-rich liquor
Al, Fe, etc.
HCl
Hydrothermal acid
regeneration
Calcination
Precipitation
AI203
HPA plant
Ferric oxide
Rare metals processing
e.g. REE, gallium,
Source: Jacob Securities Equity Research, company documents, SMS
PRODUCTION ESTIMATES
In tests conducted in its commercial-scale pilot plant, Orbite has achieved recovery rates of >90 percent for
gallium. Such a recovery rate would allow Orbite to obtain more than 90 mt a year of gallium from the SGA
plant it is planning to build 11. This estimate may change, as the project is still in its early stages, however with
its production capacity expected to be 100 mt per year with a single plant, Orbite expects to become one of
the largest and lowest-cost gallium producers worldwide, enabling production of many new gallium-based
products.
While gallium extracted using the traditional Bayer process generally produces gallium of 4N quality, (99.99%
purity), the Orbite process minimizes the contaminants in the by-product material from which gallium is
extracted, and is expected to result in gallium with greater than 4N purity.
For ≥4N purity gallium, prices vary widely. However, based on an average price of between US $460/kg and
US $600/kg 12, Orbite could generate annual revenues of US $40 million to US $55 million with this rate of
production of gallium.
Assuming clay feed throughput of 2.4 million tonnes per year (tpy) or 6,960 tonnes per day (tpd) at the SGA plant for
an average SGA production of 540,000 tonnes. The SGA plant is expected to commence operations in 2014.
12 US$460/kg is the average price for 4N quality YTD January – July 2012 and US$600/kg is the current spot price as of
November 2011 according to Roche-Génivar’s Preliminary Economic Assessment.
11
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4. Orbite Aluminae Positioning in the Gallium Market…
CAPITAL AND OPERATING COSTS
Orbite’s gallium production cost is expected to be significantly lower than that of traditional gallium
producers. Gallium is a by-product of alumina production and Orbite’s alumina production costs are
anticipated to be below the fifth percentile. Moreover, the revenue from gallium sales has the potential to
cover approximately 30 percent of Orbite’s total production costs, thereby further strengthening the
company’s position as a low-cost producer. Consequently, as a low-cost producer, Orbite will be able to
absorb the large price fluctuations that have characterized gallium markets.
Orbite also has the advantage of being located close to North American and European markets. As global
gallium production, like the rare earth market, is increasingly dominated by China, Western buyers will be able
to turn to Orbite for consistent volume, value, and quality products. This strategic position will allow the
company to gain marketshare as a gallium producer, especially as demand continues to grow for use in
consumer electronics applications.
ORBITE’S CAPACITY TO BECOME A STRATEGIC PLAYER IN THE GALLIUM MARKET
The gallium market is currently dominated by Chinese production and major industrial users outside of China
are concerned about their dependence on a single country’s supply for their gallium. As demand continues to
grow for highly specific applications such as integrated circuits – driven by increased consumption of end
uses like smartphones and tablet PCs – supply will become tighter, and manufacturers in strategic industries
(i.e. electronics, automotive, aerospace, and defense) will seek out other reliable suppliers of gallium.
With a projected production capacity close to 100 mt per year, Orbite is well positioned to become a major
global supplier of gallium and a low-cost producer of high-purity (4N) crude gallium. Its strategic geographic
location should make it an ideal supplier for European and American markets, and will provide clients an
opportunity to diversify their sourcing as well as to develop new applications aimed at a greater number of
end markets.
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5. CONCLUSION
Gallium is a key component in semiconductors, which are used in a vast array of electronic devices that are
experiencing significant growth. Its unique characteristics make it irreplaceable in a variety of specialized uses,
in particular for integrated circuits, which represent 69 percent of demand for gallium in the United States.
The United States imports 100 percent of its crude gallium, and is one of the largest consumer markets for
gallium besides China. China is the largest producer of crude gallium with approximately 140 tonnes of
installed capacity (over 50 percent of current global production), and with significant capacity expansion plans
in place.
•
Orbite, a Quebec-based company, expects to become the only North American producer of crude
gallium, and gallium will be a key by-product of Orbite’s smelter-grade alumina (SGA) production.
•
Orbite’s unique process allows for the efficient production of high-quality gallium more quickly and
economically than traditional processes, and with none of the hazardous waste. Orbite is expected to
be a low-cost producer of gallium with a projected annual production of ~90 mt per year once the
SGA plant is operational in 2014.
•
Revenue from gallium and other rare earths and metals should offset total production costs by up to
30 percent, thereby strengthening Orbite’s position as a low-cost producer. While Orbite will offer
many advantages to its customers, its capacity to provide a continuous supply of high-quality gallium
(≥4N) and ability to diversify and expand supply sources are among the most important.
Orbite is expected to become one of the top crude gallium suppliers in the world, setting new standards for
the industry in terms of process efficiency, cost reduction, and environmental responsibility, while offering its
clients a diversified and secure supply, as well as consistent, high quality at competitive prices.
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ADDITIONAL INFORMATION

Orbite Aluminae Initiating Coverage, prepared by Jacob Securities Equity Research (November 23, 2011)

Orbite NI 43-101 Revised Technical Report, prepared by Roche and Genivar (May 30, 2012)

Les matières premières minerals: Le gallium, prepared by www.mineralinfo.org (December 2011)


U.S. Geological Survey, Mineral Commodity Summaries: Gallium, prepared by Brian W. Jaskula (January 2012
and 2010)
U.S. Geological Survey, Gallium Statistics and Information, prepared by Brian W. Jaskula. (2000 to 2012)
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ABOUT…
ABOUT ORBITE
Orbite Aluminae Inc. is a high-tech Canadian company whose unique technologies could have a significant
impact on the aluminum industry. These technologies allow for the environmentally sustainable extraction of
smelter grade alumina, high-purity alumina and high-value elements—including rare earths—from locally
sourced aluminous clay.
Orbite has exclusive mining rights on its 6,441-hectare Grande-Vallée property, the site of an aluminous clay
deposit 32 km northeast of Murdochville, and a 28,000 sq. ft. high-purity alumina production facility in CapChat, both in the Gaspé region. The Revised Preliminary Economic Assessment on Orbite Aluminae –
Metallurgical Grade Alumina Project dated May 30, 2012 and effective as of November 24, 2011 and the
amended and restated 2010 Field Work Grande-Vallée Property NI 43-101 Technical Report dated August
21, 2011, which are available on Sedar (www.sedar.com), identified an indicated resource of 1 billion tonnes
of aluminous clay in part of the deposit, thus representing a half-century of the total current Canadian
alumina imported. The higher-quality smelter grade alumina—containing less iron and silicon impurities—
produced using Orbite’s process has been independently utilized by internationally renowned facilities such as
INRS and SINTEF to produce high-quality aluminum.
The Company also owns the intellectual property rights to a unique Canada and US patented process for
extracting alumina from aluminous ores and for which other international patents are also pending. Orbite
plans to offer smelter grade alumina (SGA) and high-purity alumina (HPA) and license its technologies to
well-qualified producers aiming to reduce their costs and environmental footprint.
www.orbitealuminae.com
ABOUT SECOR
SECOR is the largest independent strategy and organizational consulting firm in Canada. It has helped top
management teams plan and implement their corporate strategies. SECOR relies on over 150 professionals
and has offices in Montréal, New York, Paris, Quebec City, Toronto and Vancouver.
For over 35 years SECOR has been helping businesses succeed. Its clients include leading national and global
companies as well as medium-sized organizations, governments, departments and agencies. In this time, the
firm has developed methodologies and insights based on its experience with the most innovative and
successful corporations.
As architects of strategy and transformation, we make strategy happen. We operate according to an
alternative model for success in consulting based on customer intimacy. We offer personalized and
collaborative support to senior executives who want to dramatically improve performance.
www.secorgroup.com
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