metals recycling project

Who likes delays?

Intec had no option but to fast track Stage 2, why? well its simple the depressed price of zinc makes any new mine / production economics look pretty ordinary and that doesn't matter if you are a low cost producer, not many miners are making a decent return on Zinc / Lead production at the minute.

Secondly, costs of sulphuric acid has risen from $30 six months ago to $120, so Intec again has no option but to enhance the economics by building stage 1 & 2 for a big reduction in costs (over $4 million on sulphuric acid alone) & enhanced revenues:

My Revenue Estimates:

Stage 1:

35KT EAFD plant @ 40% Zinc = 14K @ 2100 = $29.4 million gross revenue
36KT of Calcium Sulphate @ $500 = $18 million gross revenue

Stage 1 Total Gross Revenues = $47.40 million

Stage 2:

8.5KT Lead @ 2100 = $17.85 million gross revenue
2.5KT Zinc @ 2100 = $5 million gross revenue
4K ounces of Gold @ 850 = $3.4 million gross revenue
42KT of Calcium Sulphate @ $500 = $21 million gross revenue
Silver revenue Estimate = $1 million gross revenue

Stage 2 Total Gross Revenues = $48.25 million gross revenue

TOTAL STAGE 1 & 2 Combined = $95.7 million Gross Revenue

So if shareholders have to wait 3 months to get all the data and approvals in place with plus or minus 15% economics, there is a solid case built that Intec need to have both Stage 1 & 2 in full operation.

My frustrations are why did it take Intec so long in the development process to make this call that Stages 1 & 2 should be jointly developed? But such is life and the board just had to make the call so better late then never.

Shareholders really have to back Philip Wood in that he will deliver the goods, the pressure is on the team at Intec to fast track Stage 2. Shortly Philip Wood will be in the US & Europe speaking to the two giants in Horse Head & ZincOx, we have been advised that Nystar is in the picture and don’t rule out Smorgons either as potential partners.

Regards