early signs of a breakout out..question mark, page-16

INL's shareprice decline over the last six months shows an almost exact co-relation with that of Zinifex. (If you have Commsec, choose the six month "percent" chart together with "compare with ZFX".) So presumably the price of zinc and general market conditions has a lot to do with the 50% decline since then.

The upside potential for INL from current levels is considerable. Firstly, assuming they get the new processing plant up and running, that will supply new revenues sources. Secondly, the buyout of their joint-venturer's share for one dollar in two or three years will immediately double their revenue from the current processing plant. Thirdly, unless you think that China and India's growth rate is going to slow dramatically, there is considerable upside potential for increased commodities prices. And finally, there is unlimited upside potential for their unique technology, which is being almost completely discounted at the moment. I would think that geochemist Dr Pretorius' 6 million shareholding is not unrelated to his estimation of the value of INL's technology

If INL can continue earning money at the rate of $1 million a month, which is about 2c an share, INL is looking a very attractive buy around the seven cent mark.

The quarterly report, due within a couple of weeks, will be interesting


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