a troubling of goldfish

Congratulations INL for setting up the platform that will not only secure our short-term cash flow position but drive long term survival and success.

The team have done a wonderful job putting this together. It is a more complicated structure than I gave them credit for. Mr Kieran Rogers has been a busy man mapping this structure out. INL could never go it alone in China with just Joe and his team. While Green Resources obtain 28% Shareholding in INL, come end of Stage 3, it must be recognised that a) they will pay for 50 million shares(750k) and in return INL will obtained 30% of Green Resources - being a vehicle for China opportunities, huge local experience and manpower, industry connections and most importantly an early take-up of the technology via the Liuzhou project. INL have mentioned that the economics stack up well and from a future cash flow perspective I can't wait to see the value of the initial feedstock but more importantly the jump to 1,000,00 tonnes.

They have emphasised the rapid development of projects which can be achieved in China. INL have been working on identifying these opportunities for over 2 years now via Joe and his team and the JV will allow for the completion of feasibility, construction and production (perhaps not the right word, more like waste into $$$). It appears the JV will also allow for consistent news flow with other projects identified and likely. These being;

Linshan Industrial Wastewater Treatment Plant And Electroplating Center
Nandan Industrial Wastewater Treatment Plant
Yunfu Solid Waste Treatment Center
Yongning Wastewater Treatment Plant and Electroplating Center

What price can you put on the future value of cash flows of just these 5 potential projects alone?

Also of note is the fact that INL will be introducing new technologies so expect to see some of the MOU's that INL have in place with the likes of Outotec and Veolia come into fruition. Hopefully adding even more credibility to INL's China growth story and operations.

Lets not forget here two other key China aspects.

The likely JV with Guangdong GuangYe Assets Management Co., Ltd has a purpose in mind. Noting here the MOU wording 'ACQUIRE EQUITY POSITIONS IN PROJECT OPPORTUNITIES'. They have mentioned both Australia and China but I bet JRV will be the first target. Guangdong GuangYe Asset Management Co was the company that had signed an MOU with JRV and spent over 6 months on due diligence back about the same time INL had a go at a merger with JRV. Coincidence? I think not. I don't see a JV with JRV I see a complete takeover with INL's technology used to unlock the value of the resource. I'm sure INL wont want to work with JRV's existing management given the history. I am also hopeful there will be a project opportunity identified that will allow INL to offload it's existing dust stockpile (30mil. in dust and bonds).

This week it is highly likely the GBG deal pending will be signed off. More good news.

So all-in-all INL have navigated their way through the GFC and come out the other side in with a bright future. The challenge now sits with Dave Sammut. A poster recently mentioned that Dave had told him that he was good at what he does, inferring he could up and leave and work elsewhere (I have no doubts about that) but that he believed in the future of INL and chose to stay put taking the collective pay cut. It appears the INL team have now laid the platform for future success. I challenge Dave Sammut to make good on his word. He's now got substance to communicate the immediate and future potential of INL. This weeks announcement was great but the SP is still sitting at 1.5 cents........

Hao yun.