It is worth looking at Intec's deal with Smorgon to see what this latest step for APG might be worth.
In early 2006, Smorgon agreed to supply a 22,000t stockpile of zinc rich EAF dust to Intec for processing at its Hellyer plant.
For its trouble, Smorgon would pay INL $110 per tonne. In addition, INL indicated that the zinc metal value in the dust was worth around $16M to INL. Zinc prices are now about 30% higher than early 2006..... $21M. That provides a potential revenue of $1050 per tonne to APG. INL Operating cost is around US$250-300/t Zn. Profit is therefore around AU$650-700/t Zn.
The INL process is quite sophisticated and requires electrolytic removal of the zinc metal from leach solution, then charging into a furnace to form ingots.
The APG process (rough guess here) would not need the electrolytic cells.
Capital cost for an Intec plant is estimated in the range US$800-1100 per tpa Zinc capacity. This is not too different from the APG demo plant cost that also includes an ilmenite roasting section.
INL Operating cost is around US$250-300/t Zn.
Electric arc furnaces are booming. I presume EAF dust generation must be as well. This is certainly going to be a nice little earner!! No wonder the market liked the sond of the announcement.
APG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held