SDV - SciDev Limited

[imajica]

although of course the higher the spot price - the higher the profit margin

although the recent correction in the zinc spot price was sudden and unfortunate it will be short lived as stockpiles are still incredibly low and demand is forecast to increase and outstrip production

could someone explain to me how a hedge fund could cause such a slump in the zinc price? forgive me for my ignorance

 

[imajica]

zinc is up on the LME - should see a rebound in the share price tomorrow with any luck

 

[imajica]

The presentation at the AGM (subsequently released as an ASX announcement dated 15th Nov) stated:
"Off-take arrangements in place with Chinese smelters:
a) 20,000 tonnes per annum for three years,
b) 20,000 tonnes per anum for two years

Further three-year 5,000 tonnes per annum contract under negotiation

Remainder of production to be sold at spot price."


this indicates that 45,000 tonnes a year for at least the next two years are being sold at a price that was negotiated during the recent peak in the zinc price -2/3 of production is locked in at a premium price - why are we stressing over the zinc price - INL has already guaranteed its profits! very prudent management if you ask me

 

[KIWIKARLOS]

I agree, its been hard to see the recent pullback eating away my initial investment but I believe once money starts rolling in regularly the SP will react accordingly.

 

[wintermute]

Hi Imagica, I've checked that announcement, and whilst it is possible to interpret it as such, it does not actually state that they have locked in prices..

They have simply come to an agreement with the smelter that the smelter will buy a certain tonnage off them (not necessarily at spot price, but not necessarily a fixed price either). If Intec had locked in the price I'm sure that information would have been presented to the market. Similarly They wouldn't have had a table a bit further on in the presentation that showed what effect on EBITDA different POZ figures would have if it was largely irrelevant...

Posters elsewhere have stated (if they can be believed) that there is no fixed price and that it is based on a fairly complicated formula... I guess one way to find out would be to ring Intec...

I'm still of the opinion that zinc prices will stabilise or even rise again... if they stabilise at current levels Intec will still do very well.

Tony.

 

[imajica]

I guess I might have been looking too much into it -however, I also believe that we have seen the bottoming of the zinc spot price and it will rise steadily throughout 2007 as demand increases and stockpiles diminish

btw winermute, what's ur favourite gibson novel?

are u into other cyberpunk writers?

I wrote my honours thesis on this particular genre

 

[wintermute]

I think Count Zero is my favorite I haven't actually read any other cyberpunk Authors though. Interesting thesis! Lots of prescience in Gibsons writing for someone who claims to have known pretty much nothing about computers at the time!

Tony.

 

[imajica]

if your interested , check out

Neal Stephenson - Snow Crash

Pat Cadigan - Synners

Jeff Noon - all of his books are awesome

 

[Joe Blow]

:topic

Gents, this thread is for the discussion of INL, not cyberpunk authors.

Lets keep this thread on topic please. If you wish to continue this conversation please do so via PM or in another thread, perhaps this one: https://www.aussiestockforums.com/forums/showthread.php?t=5781

Thank you!

 

[Moneybags]

Presentation out.

MB

 

[constable]

The presentation at the AGM (subsequently released as an ASX announcement dated 15th Nov) stated:
"Off-take arrangements in place with Chinese smelters:
a) 20,000 tonnes per annum for three years,
b) 20,000 tonnes per anum for two years

Further three-year 5,000 tonnes per annum contract under negotiation

Remainder of production to be sold at spot price."


this indicates that 45,000 tonnes a year for at least the next two years are being sold at a price that was negotiated during the recent peak in the zinc price -2/3 of production is locked in at a premium price - why are we stressing over the zinc price - INL has already guaranteed its profits! very prudent management if you ask me

Then what the "bloody hell" is everyone worried ablout?
Stong open on the cards, looks as though the sky's not going to fall in on all the chicken littles out there after all!

 

[imajica]

very encouraging report - a nice visual representation of the sheer potential of Intec's success

I especially like the finale which highlighted interest from overseas in licensing the Intec process - this will grow exponentially over time!

 

[Moneybags]

very encouraging report - a nice visual representation of the sheer potential of Intec's success

I especially like the finale which highlighted interest from overseas in licensing the Intec process - this will grow exponentially over time!

Hi imajica,

I agree.......the finale was the highlight.

Incidentally my sell order wasn't taken up the other day so I'm smiling again.

MB

 

[drmb]

Then what the "bloody hell" is everyone worried ablout?
Stong open on the cards, looks as though the sky's not going to fall in on all the chicken littles out there after all!

Nice green start today - it is really a relief to see it open up for a change. INL 0.215 0.220 0.215 +0.015 0.210 0.220 0.210 2,105,584
Presentation looks great - who wouldn't buy on that?

Also quote "International Expressions of Interest in IZP
 Russia
 US$2.5m feasibility study proposal
 100,000tpa Intec Zinc Process plant
 Bolivia
 US$2.5m feasibility study proposal
 100,000tpa Intec Zinc Process plant
 Iran
 US$1.5m feasibility study proposal
 40,000tpa Intec Zinc Process plan

 

[Halba]

those international projects look quite substantial

so inl's potential is certainly there. not bad for a $100m co.

 

[PhoenixXx]

Ann released today just couldn't be even better at this stage.
Very pleased

 

[jtb]

Ann released today just couldn't be even better at this stage.
Very pleased

Ditto, just got home from work and good to see a bit more green.
Had to sell my ERN to pick up more @ 18.5 -still averaging 21c but.

Dont tell Chris about the ERN though

 

[constable]

inl's going for a walk!!

 

[imajica]

strong buying today! big orders going through - punters are liking the presentation

 

[dhukka]

What I found most interesting is the slide that drmb shows above which is exactly the same slide from the AGM presentation except they have now added an asterisk that wasn't there before which reads "For a 12 month period operating at 100% capacity. Excludes corporate overhead and technology expenditure"

So EBITDA as shown is not really EBITDA since corporate overhead and technology expenditure are omitted. The most important question to ask right now would be how much corporate overhead and technology spend will actually be.