food for thought

In the presentation of 17/11/11 by MT the potential for the Newcastle plant at full capacity was ~$7m p.a. It is assumed that this is after operating expenses.

In the presentation of 22/11/12 by MT the potential for the Newcastle plant at full capacity was also ~$7m p.a.

Obviously there were major flaws in the first plan that we hope have now been addressed, considering that we have had to invest a further ~$10m into the plant construction!.

When reviewing the 17/11/11 presentation, the potential for Austpac appears to be very substantial.

The 'world wide potential' for the steel mill waste technology included a map of North America indicating ~130 locations.

What we don;t know at this stage is the real opportunity for the technology, particularly when you need to consider that existing mills range from very old to very modern and you need to ask yourself whether the technology will be applicable for newer mills?

Will the one size fit all, in other words are the cost benefits compelling for all mills.

In addition to the opportunity indicated on the map we now have a partner that has the inroad to China.

There are also India, South America, Europe and Asia to consider.

Say we have a quick inroad to 10% of the steel mills globally, that would be 13 in Nth America and say 3 times that for the rest of the world (as an estimate) which would indicate ~50 mills may take up the technology!

Say $1m per mill as a licence fee and we are looking at ~$50m over the next 5-10 years PLUS utilisation for all of the other technologies - who knows what the potential is?

Just some mucking around with figures to prompt some discussion from the 'panel'.

I am sure there are many of you out there who will be able to give some qualified feedback and inspire some posters to give some further thought to the opportunities for Austpac's future potential.

Regards....................