Been a while since last posting, but couldn’t help bring some...

Been a while since last posting, but couldn’t help bring some balance into the ZEO thread.

No arguing that any litigation is not a good thing – but fair to assume there’s 2sides to the story & ZEO won’t the first or last to navigate legal issues. Atthe end of the day it can be resolved by $ and/or shares, the way I read it andultimately it will be up to ZEO to build a business proposition robust enough to get money in needs to deliver (with or without some of those funds being legal matter related)

So to provide some balance to the heavy down ramping I’ve seen here over the past week, starting with a comments in a recent post (above) and in most parts simply using the last quarterly, as a reference.

“Thecompany has desktop project run by a QLD university”

From recent announcements its clear the company is pressing ahead with zeolite production and has a sizeable in-house lab/pilot facility at Brisbane Technology Park. Quarterly tables 120kg produced over the period, so that no tobad – seeing they only kicked new facility off late last year. Obviously they need to start getting samples out to off-take prospects and need to be producing sufficient volumes to support what on the surface look to be quite exciting climate tech associated projects:

It also has sizeable projects underway at Griffith University and a range of CCUSinitiatives in train at University of Queensland – all with a climate changeangle. One attracting Australia’s largest waste management co., which is happy to showcase the fact https://www.cleanaway.com.au/sustainable-future/carbon-partnership/ Don’t be fooled by down rampers methane is a massive problem and my understanding is there is not yet a methane (carbon credit) methodology in place in Australia – if ZEO/CWY can truly develop one, then hold on to your hats and soon no emitter will able to hide https://www.methanesat.org/

Belowdoesn’t look desktop to me:

And, by the looks of it ZEO has some early off-take interest in the zeolite samples its now producing in ok volumes, coming out of North America:

“Only$1,000 was spent last quarter on the geology. Not $1m, they spent $1,000 andsucked out more than $500k in salaries.”

Howeasy is to say ‘they sucked out $500k in salaries’ for the quarter withoutcontext of where the money is going.

Just have a look at the team the company has working in-house producing sample product & further developing technology https://zeotech.com.au/our-people/

I’m guessing at least 50% of this spend would easy fall under R&D incentive and 2022’FY P/L indicated 75% of all ZEO expenditure was R&D, so its not like the money is not being applied to progress the company’s IP.

Regardin ggeology spend, I’m not sure how much money one would be expecting ZEO to spend ongeology as seemingly there’s no immediate need to drill / assay furtherresource – it seems clear they have sufficient data on both Toondoon ML and early JORC on Abercorn EPM’s.

Therecently quarterly indicated progress continued towards mining approvals atToondoon – which I consider is important & that looks to be happening:

And,then ZEO’s valuation at $68m…I see plenty of other companies that are valued on potential, which at least some would think ZEO has, plus it has the benefit of having tabled an Independent Experts Report for Toondoon Mining Lease acquisition (Company states its one of the highest alumina grade kaolindeposits in Australia), which arms-length technical experts valued that assetat a mid-range valuation of $35.6m ($7m-65m range). Report was tabled on theASX July 22 HERE

So at the high range Toondoon ML alone (DSO scenario) = ZEO's current market cap and ZEO owns the freehold too ie ZEO acquired 682 hectares of freehold land which covers the approved Mining Lease and overlaps the 28,000 hectare EMP footprint it has around the ML and that offers high-level of confidence mining plan progress will advance promptly, if they can land some off-takes.

I’m not going to try and value the IP ZEO holds and the know-how its developing,but if its good enough to attract the likes of Cleanaway and Covalent (beingWesfarmers/SQM) then some apart from poster above (down ramping their heartout) other might agree that it carries a value.

Then there’s the Abercorn Project EPM’s which have a JORC resource and obviouslycarries a level of value – unless why a legal case.

When you look at ZEO & combine its mining assets (approved ML, freehold land andEMP footprint) it must be close to being one of the largest kaolin players inQLD and their website is taking Metakaolin (which logistics would place ZEO atan advantage in QLD) and cement players will start to consume in larger volumesas carbon reductions start to bite.

So analternate view is current market cap (~$60m is value) and offers a range ofupside drivers, pending management can execute. HC is filled with eternaloptimists and doomsayers – each with their own agenda.

My view HC is more for entertainment with an ASX favour that facts…and of course anavenue for some to vent

That all said, no doubting litigation presents a challenge that ZEO (& anyonefor that case) would a like to do without & coming from a large shareholders doesn’t help, but the case relates to Performance Rights and thesetypes of cases are not new on the ASX. Hopefully the mediation tabled inquarterly reaches an amicable solution, if not realistically getting in frontof a court these days, will take at least 6-12 mths off. Granted something willneed to be done, but ZEO’s has time and is no different to any other company - inthe real world (especially public companies) these things happen. Not tomention most companies have large holders that need to exit at some point forgood/bad reasons – so pressing that point (without considering or knowing a largeholders personal situation is simply bluff & blunder)

ZEO just needs to start converting these collaborations / zeolite interests into something more commercial – which I’m hoping will happen, due to climate change legislation (ie Safety Mechanism) forcing large emitters to reduce emissions by5% pa every year – I believe ZEO is well placed on the innovation front and todate management hasn’t strayed to far from the playbook from a commercialisation perspective for a Co. developing new tech.

So, sure there a range of companies one can chooseto invest in the ASX – but don’t be foolish enough to let mine or the opinion of any otherposter on HC influence your investment decisions (big or small) do your own research…Why not start at www.zeotech.com.au