tis a bit quiet, page-38

re: zinc It will take more than a good market price for Zinc to re rate INL. At this stage Intec is still a long way, in a time sense, from becoming a producer.

Judging by the price action, today's announcement has frightened the horses. Intec is behind schedule and due to some issues not being fully explained or even explained at all in earlier announcements the detail within the latest announcement is probably a surprise for most.

For example, in late November it was reported that there were some issues with achieving steady state performance. It should be noted, these issues are not show stoppers in their own right but INL didn't provide any guidance on consequences of these issues.

We now know INL will not achieve steady state performance before the end of the March 06 Qtr. It will then take, at least, up till the end of June 06 Qtr to generate the engineering design data that will be required to complete the Bankable Feasibility Study. The BFS is now due for completion in the Sept 06 Qtr. That could mean anywhere between 1st July and the 30 September.

In terms of financial implications, any delay is going to mean more cash burn. In the November announcement nothing was mentioned regarding Intec's financial needs. In today's announcement it suggested that a capital raising could be anticpated early in the June 06 Qtr. IMO let's say April/May for the sake of the discussion.

Until today, the immediate forward financial needs of the Company had not been spelt out at all, so the news of a capital raising would have scared a few people. It certainly took my breath away as I hadn't considered that INL would be needing to re visit the well so soon.

I guess the bottom line is:-
1) Still no show stoppers at this stage
2) This is going to take a little longer than we all thought.
3) It is going to require more funding than originally thought.
4) The financial outcomes for the Hellyer project will still be very robust to say the least despite the above.

When will INL's SP be re rated.......don't ask me? I certainly think that steady state performance will give their technology a huge credibility boost. As always the market always wants to see the cash, profit is the name of the game. So my guess is we will see some sort of re rating with steady state and any subsequent deals but the major re rating will come as Intec gets close 1st production.

Cheers
Boomer