now i get it

From another site


Gang of 6,
Shhhhhh
Some facts in this Oasis of rumour

1. The latest qtely fell well short of the 25 % of 25 m Ebitda we expected. This was due to there being only 2 shipments, normal ramp up costs, sales at $1.50 for zinc and an exchange rate of less than .83. If you read the recent announcements the Ebitda of $25m pa is before the ongoing operating costs of INL which are approx $8m pa.

2. Next qtr should be $7m ebitda at $1.70 and .83c minus $2m in corporate costs = approx $4-$5m net ebitda or about $18m pa .

3. Addt o that BSM, the slags and any other things we don't know about.

4. In 2008 the existing Burnly Demo plant will be reconfigured to handle 25,000 te of input, most of which will be EAFD at 40 % zinc vs 3% from Helleyer= 7-10k tes of zinc. The input cost will be minus $100 plus processing cost = heaps of $$$$$$$

5. After 6 months of running this the intec process will be irrefutably proven to work and will be unique in the world at its cost of processing

6. There is 2m te of zinc trapped in EFAD globally of which 1m te is disposed of in a tip at a high environmental cost. Intec will then begin building plants around the world to process this. Bearing in mind that Helleyer recovers 3% zinc per tone and EFAD is 30-40% plus people pay you to take it this represents the lowest cost production of zinc in the world. At 50% market share this is 500,000 te of zinc. The cost of a plant to process this is about $60m per 100k te so it is easily self funding.

6. The Intec process is substantially more effecient in recoverering zinc from normal mining so this is where licencing comes in

7. In 3 years time the majority of revenue will come from operating plants with a minority from licencing

8.
The scaling up of the demo plant at Burnly means earlier recoveries and negates the need for the full plant previously presumed by the BFS everyone is waiting for

9. Intec are working actively with the Australian EPA to demonstrate it's capacity to remediate environmental bombshells - I suspect this will earn credibility and $$$$ soon.

10.The above doesn't include all the other stuff that is market sensitive

11. In summary, just on Helleyer the PE is about 5. Value the rest for yourself

My 1.7m shares are tucked away in a warm drawer with a clear instruction not to come out till the sp is $2, and even then they need permission to fly the nest

DYOR if you aren't in the group of 6