SDV - SciDev Limited

[spooly74]

I don't want to put a jinx on it, but it looks like a bit of a turnaround story in the making for this one. I really hope for holders that this deal with the mysterious third party in a foreign country comes through and that it is as big as anticipated.

Yeah, there was a bit of interest at the close, but still no clear indication from the company as to when the details of the announcement might be released.

I really hope this regulatory approval has nothing to do with The Mongolian Gov on the Oyu tolgoi project. The Chinese I could handle ... just!

More importantly though, will be how they inted to fund the deal (whatever it may be)

Best of luck to long term deep suffering shareholders.

 

[spooly74]

The news this morning is a positive move for the IMRP.

"Intec Acquires Right to Purchase Major Hydrometallurgical Plant"

Another left field ann but a big question remains over funding.
You would imagine a cap raising would be out of the question considering the last debacle.

 

[TMM]

Any views on the fact that they need to pay back their 5 million dollar debt to Macquarie bank by 31st Dec this year?

Where will they get the money from in such a short period of time - I estimate that they have only half of this amount in their coffers at the moment. Macquarie bank is unlikley to extend the loan period.

Aside from this immediate problem, today's announcement at least demonstrates a future for the company.

 

[spooly74]

Any views on the fact that they need to pay back their 5 million dollar debt to Macquarie bank by 31st Dec this year?

Where will they get the money from in such a short period of time - I estimate that they have only half of this amount in their coffers at the moment. Macquarie bank is unlikley to extend the loan period.

Aside from this immediate problem, today's announcement at least demonstrates a future for the company.

Macquarie have not stated that the debt be repaid yet, but it is highly likely. Perhaps they might defer payment due to this ann. They are still a major shareholder.

Speculation aside though ....

Intec has engaged Royal Bank of Canada to initiate the orderly sale by tender of the Hellyer Mill, tailings dam and associated infrastructure over coming months. Proceeds of sale will be used to retire debt and as working capital in furthering the Intec Metals Recycling Project.

This sale will easily cover Mac Bank but there will almost certainly be a shortfall for the new plant ...... by how much though?
Possibly a loan for the remainder

They have inferred the IMRP could be cashflow positive in 6 months.

 

[TMM]

That's all well and good but we don't know when the sale will go through. Macquarie bank will need to be paid out on 31st Dec and Intec must have the cash to pay this back on time. I don't think that the Hellyer sale will be fully concluded within one month (noting that a third of December is a holiday period).
Intec is going to have to raise this cash and raise it quickly. If they have something up their sleeve it would be nice to share the information with their long suffering and now worried shareholders. The message regarding repayment of this loan should really be announced in the next couple of weeks in order to instil some confidence in the market.

 

[TMM]

As Macquarie bank is a major shareholder, there is of course a possibility that they may extend the loan period for a few months, particularly in light of today's announcement and money coming through in a few months from the tender for Hellyer. Let's hope that is the case.

 

[mango65]

Hi TMM and All,

Posters continue to "bag" Philip Wood for a variety of reasons.

Personally I see no need for Philip Wood to do anything other than what he is doing. He is making the best of an extremely difficult situation.

Intec has passed many a milestone during the last few years but for every few steps forward there seems to be for some people, a step backward. So it seems with the latest announcement. Yes, selling the Hellyer complex was a surprise and deemed to be a step backward but, the buying of the Delta EMD plant is a big step forward. A giant step forward really. Milestones achieved in the last few years have been in the areas of an increasing number of patents to unlock metals from extremely difficult ores in an environmentally friendly way; no toxic residues and no emissions to pollute the atmosphere. Also large mining companies come to Intec and pay their Toll Fees to see what Intec can do to unlock their difficult ores. Intec has always been successful in its treatment of these difficult ores which is always an encouraging sign, but so far none have bitten the bullet and taken on one of Intec's methods. Philip Wood can't precipitate a "shotgun marriage" with some big company to take on an Intec method. It has to be voluntary and certainly a "greenfield site". That no company is willing to be first to try an Intec method is not surprising as no-one wants a multi-million plant that may be a lemon.

Intec wanted Hellyer to prove its process but now can do the proving much more quickly and cheaply than by going with its original plan. That is what I call flexibility and seizing the moment. Progress may be slow but it is steady and every step is calculated to allow for no unexpected surprises when the new method is adopted.

Philip Wood has not driven the share price into the ground. It is because people don't read or understand what Intec is about and see it as a zinc miner and not a "technology provider". Therefore comments such as "You have driven the share price of INL shares to the ground so soon after digging into shareholders pockets with another dilution issue." is erroneous. It has the new cutting-edge technology and will prove it in the near future.

The Intec Forum site provides far more information than any other company I have ever known. That some people are unhappy with information given as answers is not withholding information and being evasive but answers are given according to strict ethical standards and conform with ASX rules.

Many milestones have yet to be achieved before Intec can claim success. The path ahead has still many obstacles to be overcome and anyone can add to those I am listing below.

1. Paying Macquarie $5 million by the 31st Dec or getting Macquarie to roll the loan over.
2. Paying $2 million by the 28th February to execute the agreement for sale of the site.
3. Acquiring South African regulatory approval for the sale.
4. Waiting for shareholders of Delta to agree to the sale.
5. Getting new site indemnity approval for the new process.
6. Conduct a "due diligence assessment" of plant and all it entails.
7. Obtain $30 million in cash or kind by the 15th April 2009.

He will certainly earn his keep by overcoming the above. What Philip Wood needs is support and the continued determination to do what he has always tried to do; Make Intec successful and a world leader in new technology.

Cheers.

 

[TMM]

Many companies are going through challenging times with regard to financing, and there are many good companies whose shares are severely down due to the general state of market and low metal prices. Intec is just one of them. It is linked to metal prices but also has great technology that the markets are not considering at the moment. Some companies will survive, others won't. I have a reasonable amount invested in INL and, like other investors, am concerned about their ability to meet their financial obligations. Hoping that Macquarie bank sees the potential of this technology and holds off reigning in the December debt.

 

[mango65]

Hi All.

The following is Dave's response to Tweaty on Intec's forum.

RE: IMRP Staffing
Response from Dave Sammut, Intec Ltd

Hi Tweaty,

The full operating Intec Metals Recycling Project will require four shifts of operators, a daytime maintenance crew, technical staff, line management and operational management, an environment, health and safety professional, and administration for day-to-day operation. It will possibly also have dedicated technical team for plant optimisation and the development of future projects.

We're not going to detail specific staffing levels until we are closer to operations, however, and even so staffing levels will probably vary over time as activities at the different business units vary.

The location of the upgraded Intec Metals Recycling Project is very favourable for several reasons (including the proximity to feedstocks as an Eastern seaboard transport hub), of which one benefit is that the Newcastle region is very well serviced by a substantial pool of well-trained, experienced industrial staff. Intec would clearly hope to recruit some of the operators who previously worked for Delta EMD and therefore know the plant very well, but looking more widely, we are informed that BHP (as example) is in the process of shedding over 100 and up to 200 jobs from its technical division.

We are confident that we can readily staff the Intec Metals Recycling Project with talented, well-trained operational staff who will share our vision of bringing the environmental and economic benefits of the Intec Process to global application.

To those who doubt Intec is not serious on their future direction I recommend a re-think.

Cheers.

 

[Gundini]

The news this morning is a positive move for the IMRP.

"Intec Acquires Right to Purchase Major Hydrometallurgical Plant"

Another left field ann but a big question remains over funding.
You would imagine a cap raising would be out of the question considering the last debacle.

Still a big questions remains over funding it seems.

I read that Philip Wood stated that there is no way Intec will place the 2 Million down payment for this plant unless funding was secured.

The time has come to fork out the 2 Mil, by 28 Feb (Saturday)

Surely this means a big annoucement is forthcoming!

I can only see it being positive, as a negitive announcement would all but send these guys out the back door...

They are certainly tight lipped, anyone still interested in INL, or have you given up! I couldn't blame you, it has been a disappointing stock...

 

[spooly74]

Yeah, disappointing is a word that comes to mind along with a few others, but I'll defer some time in the sin bin, for now.

BSM agreed to purchase Hellyer last week, and if Mac Bank are happy to defer full payment again (for now), there should be an ann out soon regarding a deposit for the new plant.
Despite the horrendous sp, the aquisition of the plant at Mayfield is a stroke of genius, if approved etc.

Intec have always been about the IMRP, and comparing 20M now to the initial capital costs of 140M 5 years ago is a bargain.
Also, if they had attempted to construct the plant themselves, the risk of cost escalations and commissioning problems increases dramatically.

If they don't get funding for the plant :goodnight

Risk/Reward at 1.2c?

 

[Gundini]

If they don't get funding for the plant :goodnight

Risk/Reward at 1.2c?

I think the reward outways the risk here and therefore I have had a small bet on Black, knowing Red may well come out!

What concerns me more if Green comes out, an Mac or some other lender delays the agreement on financing.

This will truely give me the

 

[mango65]

Hi Gundini.

Well the time is nigh. Intec has officially to post that $2 million by tomorrow.

Half Yearly is out today after Market closes. I don't expect anything out of the ordinary though I may be surprised. We know the cash balance at 31st Dec, we know that Bass Metals has agreed to buy Hellyer, we know that GHD's comprehensive report of the viability of the Mayfield plant is due today, ( guess we won't get a look in for a long time yet), and that Inteq may still be looking for backers.

Once GHD's figures are known to Intec the real bargaining can commence.

Only time will tell.

Cheers.

 

[Gundini]

Up 128% today on new contract news.

Seems a large increase considering it doesn't seem to be an earth shattering deal.

spooly will be happy after tipping this in the monthly competition. lol..

26mil buyers and 1mil sellers

 

[spooly74]

Up 128% today on new contract news.

Seems a large increase considering it doesn't seem to be an earth shattering deal.

spooly will be happy after tipping this in the monthly competition. lol..

26mil buyers and 1mil sellers

Yeah, didn't seem that good an ann, but they may have found a lifeline.

'Profitable commercial treatment to continue through 2009', so they may have other suitors. This treatment may be of interest to quite a few companies nationally and globally, but I haven't looked at it at all.

My eye has been on the IMRP.

It is expected that this intellectual property will have quite broad application for mine tailings water, industrial waste water and waste sludge treatment, nationally and internationally.

 

[Gundini]

Things seemed to have settled down at the minute, but at one stage they were up 300%. This deal has added confidence to the Intec process and may be the catylist they need to fund the Newcastle plant.

I only hold a small parcel at a very low price, but I know there will be a lot of happy holders after today

 

[juiceman]

Up 128% today on new contract news.

Seems a large increase considering it doesn't seem to be an earth shattering deal.

spooly will be happy after tipping this in the monthly competition. lol..

26mil buyers and 1mil sellers

WTF
Up 200%
Got as high as 300% earlier
Now tell me that they have recieved the dollers for the Mayfield site and i will wet my pants exitment

 

[spooly74]

Here is the response from their Corporate Development Manager, on their websites Q&A.

Interesting they've had some immediate enquires.

Still, for mine, Mayfield and the IMRP will bring the big bikkies

Response from Dave Sammut, Intec Ltd

Hi Bill,

As our shareholders are aware, we have been working for some time on applications of the Intec Process or related technologies to waste waters, mine tailings waters and waste sludges. We have discussed some of these efforts and their implications in formal publications, including the recent December 2008 Quarterly Report, and on this Intec Investor Q&A Forum.

The key to today's announcement was not that we have been successful in this area, as we had already announced success in the Quarterly Report, but that we have signed the first commercial contract for the treatment of such wastes at our high-quality facility in Burnie.

The commercial waste operations at the Burnie Research Facility occupy only a portion of the plant, leaving additional capacity for other trials as envisaged in its original design. Over the coming months, the wastewater operations are expected to profitably recycle the heavy metals while leaving a clear water stream for discharge under licence into sewer. We are also working to secure additional contracts, both with ACL and other providers, to continue this profitable operation.

The Intec Process was originally designed for mineral extraction and recovery. It is only in recent years that we have observed the important opportunities for waste processing, a combination of the wider application of the Intec Process than originally envisaged, the extension of related knowledge beyond the main Intec Process, and the developing legislation that gives impetus for better environmental technologies.

We are now trying to develop an opportunity with industry for the zero-waste recycling of heavy metals and acid from a much larger industry source � several million litres per annum. We hope to secure government support through the state EPAs and with this funding optimise the technology for the particular application over coming months, then to prove the commercial application at the Burnie Research Facility, and finally to work with industry to roll out the technology at dedicated facilities across Australia. There are, however, a lot of assumptions in that sentence, and we put it forward strictly as an indicator of what we are trying to achieve. It is not a statement of expected outcomes.

More generally, we see the Intec Process and Intec-related recycling options as having much wider application in the future. The technologies offer a cheaper alternative to common practice for many industrial wastes, and by recycling the heavy metals into product (either leaving no waste at all or clear water for discharge) they achieve a markedly better environmental outcome relative to the landfill-based competing technologies.

Indeed, today's announcement has resulted in an immediate enquiry regarding the possibility of treating mine tailings water at an Australian mine site.

These things will take time, however. Our team is working to advance opportunities on a number of fronts: the Intec Metals Recycling Project at Newcastle (at which we have already indicated wastewater and waste sludge process would be an early opportunity), minerals processing projects such as the Browns Sulphide project, and waste processing opportunities such as that announced today. In the meantime, any shareholder looking for a back to pat should offer their congratulations to Brian Banister, whose tireless enthusiasm, optimism and diligence was largely responsible for the ACL contract.

 

[comptec]

looks like the stock is going to recover all the way to 14 cents by end of the year or early next year.

so far no bad news for the stock, and it doesn't look like it will have any

only upward for this stock. it's a buy for me

 

[johannlo]

Hi Comptec - I agree the developments esp in this green era sound promising but where did you get that 14c figure from?

Bought in at 2.1c a month ago on a long shot.