Accumulate.Looks like a nice place to park the dough in times of...

Accumulate.

Looks like a nice place to park the dough in times of trouble. Zinc & Iron both predicted to be in demand for a number of years & large Green appeal in recycling.

Meretec plants in Victoria & Chicago combined, in 2007/08 should produce upwards of 4000 tonnes Zinc (Powder) & 220 000 tonnes Meltstock. From latest Meretec release :

http://sa.iguana2.com/cache/0c5a69da37c93ee40ee5da6c8138c99e/ASX-CMV-395306.pdf

The meltstock is a sought-after feed for foundries and commands a price premium over lower grades of recycled metal. “The purity of the zinc particulate obtained from the Ringwood plant is above 99%, exceeding our initial expectations of its quality. Management and the Board are very happy with the output from the plant and are excited about the opportunities the Meretec Process offers for growing CMA’s processing volumes and making a positive profit contribution to the Company,” Mr Rowe said.

Combined costs of both plants around the $25million mark. Looks like a nice return coming up for the initial investments.

From Sept, Meretec release, http://sa.iguana2.com/cache/61179b25df8cc7ca8abfce1086edae7f/ASX-CMV-377859.pdf

“Meretec prevents the creation of pollution before the recycling process, and eliminates the problems associated with the disposal of zinc laden prescribed waste,” said Mr Rowe.
“In addition, there are significant financial and environmental savings through the use of the clean black ‘Meretec Meltstock’ for the manufacture of castings and new steel. Every tonne of steel de-galvanised by Meretec and then recycled into new castings or steel saves 1,134 kilos of iron ore, 635 kilos of coal, 55 kilos of limestone and 20 kilos of zinc. Meretec delivers a win-win for both CMA and for the environment.”

Lots of confidence from the latest release re Meretec grades & prices.

Hopefully a positive half yearly on the way with start to regular dividends for holders.


Luck All