SDV - SciDev Limited

[wintermute]

Definitely worth checking out Juiceman, as I'm only going on recollections of announcements I have read, and I'll be the first to admit, that on occasion, what I have remembered (or thought I'd read) and what is actually in the announcement, can be rather at odds!

I'm not sure about the options I was expecting an announcement saying more had been issued but none have been forthcoming, but the number that MBL have, as reported in the presentation, seems to fit with how many I thought that they would have after the issue, not before.... (my understanding, again from memory is that if they were using the loan facility past april, then an additional number of options excercisable at 8c each would be issued to MBL) so I think they have them but there has been no appendix 3B (if that is the correct letter) stating that they have been issued... perhaps if they are unlisted it is not necessary?? not sure.

I fully agree that these guys are really on the ball, and IMO very astute businessmen, the slurs against management that I've read elsewhere are IMO extremely unwarranted and if anything show a complete lack of understanding of the achievements to date, on the part of the people making the slurs.

On the MBL here are extracts (from commsec pro trader operational history) of the relevant announcements with respect to MBL.

23/06/2005 Intec announced that Macquarie Bank (MBL) committed to provide a secured $2.5m standby Working Capital Facility to the company alongside MBL taking a placement of $0.5m worth of the companys shares at 6.9 cents per share. There are no cash fees payable in respect of the Facility, which is repayable by 31 December 2006. The company added that in consideration of MBL providing the Facility, it will issue call options to MBL for the purchase of 15m shares at 8 cents per share, expiring 30 June 2008, with a further issue of 10m options on the same terms made on first drawdown of the Facility. The company added that it has agreed to mandate MBL to lead arrange the debt financing and associated metal price and interest rate hedging facilities for development of the Hellyer Metals Project.

That first one accounts for 25 Million options.

By Deed Of Amendment dated 15 February 2006, Macquarie Bank and Intec have agreed to increase MBLs Working Capital Facility (WCF) to INL from A$2.5m to A$5m until 12 May 2006. In the event that the increased WCF is utilised beyond 13 March 2006, INL will issue 10,000,000 options to MBL, each to purchase one fully paid ordinary INL share at 8 cents on or before 30 June 2008. In the event that the increased WCF is utilised beyond 10 April 2006 a further 10,000,000 options will be issued on the same terms.

And that one is the other 20 million matching the total of 45 million options...

Now one thing I had not noticed previously was that these were call options... I had previously thought that they were normal options.... Call and put options is not something that I have done any research on, but I'n guessing that call options give maquarie the right to say they want the shares if they are in the money, and they pay 8c each??

Finally thanks for the compliment I have been very interested in INL since about June last year, when I flippantly made a remark to Kennas (and finicky) over at sharecafe saying I thought it was going to go down (I think that they were bullish at the time) I'd done no research, and was being somewhat of a smartarse (but it was at least based on a theory... which didn't pan out), I'd only just joined the site, and it was in fact my first stock forum. When things didn't quite go how I thought I actually started doing some research on them, and the interest was sparked. I completely failed to take into account the significance of the Polymetals JV which is why all of my waiting for retraces that never came was in vain, I was only considering one part of the company, ie the technology side. I think it is safe to say that I've learnt a lot from following INL... I've not made any money on them yet (could have if I sold when they topped 30c), but they are one of my biggest holdings, and I'm confident that with time, it will pay off.

Tony.

 

[juiceman]

Hey Mute
Re: Burnie eafd and opies, called INL yesterday, no answer yet,Directors were a bit busy,said they would call back to-day.

INL share holders, Have a look at BSM sp this morning.
Not new,but look at who is involved,and on what terms.
INL sits on the board of BSM, so who might have a very good reason to develop an interest in INL's processes.
Doesnt that other party have newly aquired Zinc processing intrerests in Europe

 

[Enumerate]

Just a couple of points about Intec.

In terms of the EBITDA numbers and P/E thread:

- Intec gets from the Polymetals jv a payment of about US$1.85million per shipment. Remember, this is from the jv (not to the jv) and is after smelter terms have been deducted.
- Steady state will be about 1 shipment per month.
- Smelter terms vary significantly by grade (the higher the grade - the more significantly higher the payment). Hellyer grades will go higher - for a couple of reasons following.

Hence, the EBITDA for the Hellyer project is likely to be about A$30million+, steady state. (Subtract the corporate and R&D costs - I think a current P/E of about 5 can be expected for a years steady state Hellyer production.

Note also, that the output from the HZCP will be stockpiled for a second processing run using the Intec process (there is still economic Zn, Au, Ag, etc in the "waste" from the traditional concentrate run!).

The Intec Hellyer Residues Project (IHRP) is very important. It is likely to be a mixture of EAFD + Zeehan slag + BSM ore. It is important because it is the "front end" of the full Intec process. EAFD contains Zn oxides and Fe complexes that are dealt with using the Intec halide process. The Zn Sulphites are precipitated out and sold as Zn concentrate only after a filter process which captures Au, Ag, Pb, Cu, etc. These precious, and other base metals will be available as concentrates to be processed through the final stage of the Intec process - electrowinning. The speculation is that this could be done a Burnie - at the development complex.

The conclusion is that IHRP will produce high grade Zn concentrate to be mixed with the HZCP output for increased $$. Also, Burnie, as speculated could be producing ingots - Au, Ag, Pb, Cu etc - in processing campaigns.

(Remember the Intec process produces metal at the cathode of the electrowinning stage. The only reason HZCP produces concentrate is that it sells for big $$ NOW - and Intec do not have a the electrowinning element at the Hellyer site.

The IHRP will prove the Intec process beyond doubt and create more valuable concentrate. If the speculation is correct - ingots may be produced at Burnie - another happy surprise for the market.

Remember, also, that BSM are expected to sign an ore processing agreement with Intec real soon now.

Add in to the mix that after processing 6mt - Intec can buy out Polymetals for A$1 and double income from the HZCP ...

Lots of organic growth from current levels over the next few years.

Not bad for a company trading with an estimated P/E of 5 ...

 

[Bushrat]

From what i see on all these forums, everyone is trying to reassure each other that INL is a good thing.......why the lacklustre share price, and walls of selling on every advance??? If it moves down 2 cents instead of up 2 cents - gawd helpus the world will cave in....will this be the case when it is $2...?

Let the impatient sellers have their way.....as they obviosuly believe extremely short term opportunities lie elsewhere....my feeling is seeya off the share register loosers.....chasing shadows on stocks that arent producing....

I see it all as a mad buy opportunity. The stock is underpriced, the fundamentals are there, the management is keen, responsive, motivated, intelligent and not phased by SP action...a professional outfit.

I hold a stack and not so concerned by short term price fluctuations - for me its a 12 - 18 month project for serious sp movement. Thereafter many multiples of where we are now....

Its stock picking 101.

Look at the basics...cashflow, resource, technology, fundamentals, management, base metals prices......it is on the radar.

 

[imajica]

...on the web...

"Sargold Targets Longer Term Production Strategy at Furtei"

Su Coru is the principle resource in a number of enargite-hosted deposits at Furtei. This enargite ore has historically proven to be problematic - it is refractory in nature and contains deleterious minerals to the smelting and refining process, which attract significant cost penalties. After investigating a number of processing options over the past year to solve this issue, the Company is pleased to report it has received promising test results from an atmospheric leach process, the Intec Copper and Gold Process, which has obtained metal recoveries of 90% or better utilizing a halide solution to oxidize the sulphides. This method does not require high temperatures and pressures, and can be carried out using typical chemical processing equipment. The continued success of this process will provide for the production of saleable gold and copper at Furtei, eliminating the refractory limitation of the enargite ore, and providing enhanced economics due to minimal transport, smelting and refining charges compared with traditional sulphide concentrate production.

Chairman & CEO Richard Warke said, "The Intec Copper and Gold Process has demonstrated that enargite ore can be recovered with potential economic viability. If successful, this will allow the Company to explore several target areas at Furtei and other properties on the island that have enargite hosted mineralization."

full article here: http://www.sys-con.com/read/375531.htm

 

[drmb]

...on the web... "Sargold Targets Longer Term Production Strategy at Furtei"

From http://www.sargold.com/ - Sargold Resource Corporation (TSX-V: SRG) is a Canadian junior resource company that controls the largest precious metals exploration land area in Sardinia, Italy. The Company now holds a 90% interest in the assets, which range from the mine and full processing plant at Furtei, to a host of exploration opportunites at Monte Ollasteddu and the advanced exploration properties at Osilo.

Sargold poured its first gold bar at Furtei in March 2007 to launch a near-term production plan based on processing the upgraded ore from the residual heap leach pad at the site. This production is currently yielding approximately 500 ounces of gold per month for the next few months.

Based on metallurgical testwork, internal studies and results to date, the Company is now targeting to produce approximately 15,000 – 20,000 ounces of gold within the next 12 months from the Sa Perrima zone, ramping up to between 60,000 – 70,000 oz Au equivalent in its second year with the addition of the Su Coru zone, before leveling off to approximately 50,000 oz Au equivalent per year for a minimum of five years.*

 

[Porper]

From http://www.sargold.com/ - Sargold Resource Corporation (TSX-V: SRG) is a Canadian junior resource company that controls the largest precious metals exploration land area in Sardinia, Italy. The Company now holds a 90% interest in the assets, which range from the mine and full processing plant at Furtei, to a host of exploration opportunites at Monte Ollasteddu and the advanced exploration properties at Osilo.

Sargold poured its first gold bar at Furtei in March 2007 to launch a near-term production plan based on processing the upgraded ore from the residual heap leach pad at the site. This production is currently yielding approximately 500 ounces of gold per month for the next few months.

Based on metallurgical testwork, internal studies and results to date, the Company is now targeting to produce approximately 15,000 – 20,000 ounces of gold within the next 12 months from the Sa Perrima zone, ramping up to between 60,000 – 70,000 oz Au equivalent in its second year with the addition of the Su Coru zone, before leveling off to approximately 50,000 oz Au equivalent per year for a minimum of five years.*

A bit of movement today so thought it might be time for a chart and one of many possible scenarios.

What struck me was the amount of time projections around 17th May.The more projections around the same date potentially give a higher chance of a reversal happening.

Still low volume so could be totally wrong here, and the recent price action is negative, but may be of interest to some.

 

[imajica]

Minenews Story: May 17, 2007 (source: minesite)


Bass Metals Revives Hellyer

By Our Man In Oz

Size, contrary to what some men think, is not everything. In Tasmania, a sometimes forgotten island off the south coast of Australia, there is even a mineralised example illustrating the point that good things can come in small packages, especially in a mining boom. Two companies, Bass Metals and Intec Ltd, are the entry points to discovering a remarkable story of revival and potential future growth in a State where orebodies can be small, but remarkably rich. Between them, Bass and Intec are breathing new life into the once mothballed Hellyer base metals treatment facility, and setting about exploring for additional ore to expand a business which was once a major source of zinc and lead. In terms of “symbiotic” relationships, where each side leans on the other, this is perhaps one of the better examples anywhere in the mining world.
If all goes to plan, Bass has the potential to become a substantial producer of zinc and lead, with the added bonus of gold and nickel in the future. Intec, which is essentially a technology-development business, will be able to show the world that its patented chlorine-leach process is a money-spinner. So far, investors have been cautious as to how they treat a rather complex technology development and exploration situation, especially given the history of Hellyer. Bass, so far, has been the favoured partner in the deal with a share price that is close to a 12-month high at A42 cents, capitalising the company at A$30 million. Intec is the bigger business, valued at A$106 million, but with a more sluggish share price which has eased from a high of A31 cents late last year to recent trades at A18 cents.

To understand what’s happening a potted history is essential. The Hellyer mine and processing plant, located near the hamlet of Tullah in western Tasmania, were once the pride and joy of a famous Australian miner, Aberfoyle . It disappeared inside Western Metals in 1998 after a hotly-disputed takeover. Western Metals, in turn, collapsed in mid-2003, triggering the mothballing of the Hellyer mine and plant. Late in 2003, Intec bought Hellyer at a bargain-basement price of A$1.59 million (yes, A$1.59 million, or about £670,000). The plant replacement cost today is estimated to be A$100 million. Intec’s plan is to use Hellyer as a life-sized demonstration of its chlorine-leach process, starting with high-grade tailings near the mine, and then by bringing in fresh feed from mines, such as remnant ore from the old Que River project, and from remnants in the Hellyer mine itself. Because it is a technology business Intec sponsored the creation of Bass in 2005 as an explorer and miner, retaining a 23 per cent share and board seat.

Roll forward two years, factor in much higher metal prices, and the re-birth is almost complete. Tailings are moving through the Hellyer mill, with at least five years of work ahead. Bass has also delivered to the mill its first trial of fresh ore from a re-worked “lens” of near-surface ore from Que River. Intec’s plant operators are busy twiddling knobs to blend tails and fresh ore, a process providing its own challenges. As the ramp-up at Hellyer accelerates, Bass is busy working up a mine plan, which sees a series of development stages at Que River, then on to the old Hellyer mine, and then (fingers crossed) from exploration targets such as those around the old Farrell, Magnet and Oonah mines.

Stage one of mining at Que River is small. The total resource and reserve is estimated to be just 124,000 tonnes, but with a grade of 8 per cent zinc and 4 per cent lead, plus copper, gold and silver credits – with the gold component assaying a respectable 2 grams a tonne. A glimpse into the quality of the original Que River orebody can be gauged by remnant pillars in the mine which include assays as ripe as 19.4 metres at 25 % zinc, 9 % lead, 343 g/t silver and 11 g/t gold. Good enough to eat.

But, the big prize for Bass (and Intec) is a major new discovery which would be far more rewarding than rooting around in old and difficult mines. “We’re in elephant country, hunting elephants,” is a phrase given a thorough work out by Bass chief executive, Mike Rosenstreich, while showing Minesite’s Man in Oz around the plant and exploration sites. His aim is to find a mine similar in size to Hellyer, or the nearby Rosebery base metals mine still being mined by Zinifex. “This whole north-west corner of Tasmania is intensely mineralised, with the potential to throw up world class mines such as Mt Lyell, Rosebery and Hellyer.” Rosenstreich is right. But it’s equally true to point out that Tasmania has been home to a multitude of small, but rich, mines, and in a boom even a couple of those will prove juicy morsels – especially when you have a processing mill at your disposal, and within easy trucking distance. Nothing’s far away in Tasmania.

“We expect to be able to generate a profit of somewhere between A$8-to-A$12 million from our work at Que River,” Rosenstreich said. “That represents a substantial cash injection which we’ll apply to our exploration effort.” In terms of time, work at Que River is likely to last between three-and-five years, with development divided into four stages. After that, remnant mining is likely to start in the Hellyer mine, as well as possibly stepping out into identified extensions of the original, but mined out, orebody. As the cash flows in, Bass will accelerate exploration.

 

[imajica]

touching 20.5 cents today with good volume

I think the word has got around

could someone provide some T/A for this mini breakout?

 

[Sean K]

touching 20.5 cents today with good volume

I think the word has got around

could someone provide some T/A for this mini breakout?

Lots of resistance at .20 ish established over some time. Has failed a couple of times at potential breaks recently so don't count your chickens. Looks promising though. Making a higher high. Chart, MACD and Stochs all lining up to say it will break. I wouldn't call this one a break until it holds EOD above 20 and then subsequently tests it as support.

 

[juiceman]

Had a return phone call yesterday from Dave Sammut corporate development manager inl.
During the conversation it came out that they monitor our posts and comments, with a degree of interest, they too apparently enjoy our comments (with i"m sure the odd laugh). as it should be.

Somebody nailed the situation with one of their posts with a degree of accuracy that impressed the company (joking they thought it should of been on their web-site).
So who was it?
I suggest DRMB
WINTERMUTE
ENUMERATE
IMAJICA
While i don"t know apparently the person recieved an email from the company re that post
Stand up and take a bow.
Sorry but i have run out of time,will post my reason for the phone call later ie questions and answers later.

 

[Moneybags]

Had a return phone call yesterday from Dave Sammut corporate development manager inl.
During the conversation it came out that they monitor our posts and comments, with a degree of interest, they too apparently enjoy our comments (with i"m sure the odd laugh). as it should be.

Somebody nailed the situation with one of their posts with a degree of accuracy that impressed the company (joking they thought it should of been on their web-site).
So who was it?
I suggest DRMB
WINTERMUTE
ENUMERATE
IMAJICA
While i don"t know apparently the person recieved an email from the company re that post
Stand up and take a bow.
Sorry but i have run out of time,will post my reason for the phone call later ie questions and answers later.

Well I nominate Tony ( Wintermute ) as the likely candidate. His posts offer a well thought out approach to INL. If you ever visit HC you will see his posts outshine most over there.
MB

 

[drmb]

Had a return phone call yesterday from Dave Sammut corporate development manager inl.
During the conversation it came out that they monitor our posts and comments, with a degree of interest, they too apparently enjoy our comments (with i"m sure the odd laugh). as it should be.

Somebody nailed the situation with one of their posts with a degree of accuracy that impressed the company (joking they thought it should of been on their web-site).
So who was it?
I suggest DRMB
WINTERMUTE
ENUMERATE
IMAJICA
While i don"t know apparently the person recieved an email from the company re that post
Stand up and take a bow.
Sorry but i have run out of time,will post my reason for the phone call later ie questions and answers later.

I wish! But can't be me mate, I'm just a dumb sh*t sitting in a lab at the moment in Indonesia draining the swamps, looking for the crocodiles, or was it bird flu! Time to come home I think. One of the other three - take a bow!

 

[chennyleeeee]

Wow this post has really kicked off since the last time i posted abt this stock. Unfortunately Im already out of this one. Im not too happy with this little stock anymore, its gone past a lot of regions which I thought would have been good areas of support.. (23 and 21) but it hasnt yet gone past where I brought it at 13.5 last year.

Good luck to anyone who still wants in, but I dont know if I'll ever get back into this one, I still like its prospects but the graph is just so disappointing (very solid downtrend) regardless of todays significant move. 21c has become somewhat of a barrier. maybe if it breaks past 21c they might have a good chance.

CHEN

 

[wintermute]

Well I haven't received any emails (that I'm aware of) so it must be either Imagica or Enumerate (or someone who wasn't listed! Unless it wasn't identified as being an INL person..... ) and thanks for the compliment MoneyBags!

I've done more research on INL than any of my other holdings, but It still has it's mysteries, and I could still do a lot more!! but I've done enough to feel comfortable

Must say that todays volume and closing price looked good, volume weighted average price was 0.1992 today so very close to the close price which IMO is a good sign.

Tony.

 

[juiceman]

2 down and 2 to go.
Further to conversation with Dave Sammut
Burnie pilot plant is cash neutral + But very valuable to the company going forward.
His words; the company is very much in a staged development phase.
Orian/Ivanhoe do have certain rights to Hellyer technology,and were entitled to discuss it with the Chinese (if used there would be many spinn-offs for inl. Massive Synergy

He reminded me; That the mining industry is famous for RACING to come
second.

Hellyer plant has capacity to handle bsm ore as well as there own tailings
BSM ore high grade (look at their sp)
Old news re; Bolivia Russia and others etc are living things

IMO there has been quiet accumulation of inl shares for three months, avg 2 mil per day, BSM sp has been moving up very well and an announcement is due very soon.
Just suppose bsm found their elephant and with inl owning 23% of that beast
Tassie may end up with 1 very large mammoth.

Out of interest there is a lot of new information on the company web site
re; new directors, local press releases etc.

 

[juiceman]

I"m going to stick my neck out and call a PRE - breakout alert on inl
Reason:
Look at BSM"s 6--12 month chart
Look at INL"s 6--12 month chart to me they look very similar, both retreated aprox 16 cent"s 50% before bsm broke out.
Both had similar % gains last yr pre Dec Jan.
There is a synergy between the two, ie shared director, part ownership,processing, same region etc.

So why the lethargy with inl sp?
Kennas any technical thoughts?

 

[wintermute]

Time for the next installment in my running theme of weekly charts for INL It keeps looking better to me...

Note points 1 and 2 marked on the chart, only twice the sp has dropped down below the price envelope (apart from now) in the last two years, and shortly after it had a breakout. We have recently point 3 broken down under the price envelope again. Point 4 is a long handled inverted hammer (or shooting star if you are feeling bearish) the fact that it is pretty much sitting on my trend line, gives me the feeling we should see a rally next week. though if you look at the last major breakout, the price actually pierced down through the trendline before convincingly coming back up.

All a bit smoke and mirrors, but from a pattern point of view, to me it looks pretty bullish Big white candle next week would pretty much make a bullish reversal pattern.

Tony.

 

[juiceman]

Hey Mute great minds think alike, at the same time,from a different points of view.
Tony with 2 heads on the chopping block now
In the event that were both wrong, would you mind terribly; if you go first

 

[juiceman]

out of interest here's an oldie but a goodie
consider the price of zinc then as against now
Think i should run down to Cash Converters now, sell our dog kennel with dog and top up with a few more inl.
Then within a short time buy back the dog, and treat him with 2 larger kennels

http://www.intec.com.au/docs/media/Ozequities.pdf