Zeotech (ZEO) Update Summary Company Overview - **Company**: Zeotech (ZEO) - **Industry**: Mining and Materials, specifically focusing on kaolin production Key Points from the Call DSO Offtake Agreement - Zeotech announced a significant DSO offtake agreement with MSI, projected to generate approximately **$200 million** in revenue over the first five years [3][31] - The agreement is legally binding and includes fixed price, terms, conditions, and volumes [5][6] - Expected EBITDA from this agreement is estimated to be between **$10 million to $12 million** annually starting early next year [4][8] - The capital expenditure required to initiate this business is around **$7 million**, which is relatively low compared to the expected revenue [8][14] Business Model and Synergies - The DSO agreement is not the core business but will support the main project, Auspolz, by providing necessary funding for capital expenditures and road improvements [9][12] - The DSO material is unique due to its high purity and does not require refining, making it competitive against other products [22][23] - The DSO includes two types of material: low iron DSO (150,000 tons/year) and a higher value cosmetic grade (starting at 10,000 tons/year) [15][16] Operational Logistics - The Tundurin deposit is located approximately **200 km** from Thunderbird Port, with transportation costs around **$40 per ton** [27] - Bundaberg Port has recently invested over **$20 million** in bulk minerals loading systems, which will facilitate the shipping process [28] Future Plans and Auspolz Project - Zeotech is moving into the definitive feasibility study phase for the Auspolz project, with positive feedback from various concrete companies on its applications [34][35] - A significant concrete pour demonstration is planned, involving about **90 cubic meters** of concrete, to showcase Auspolz's performance [36][37] - The Auspolz project has the potential to significantly reduce carbon emissions, aligning with government decarbonization goals [40][41] Market Opportunities - There is strong interest from both domestic and international markets for Auspolz, with potential orders already in place [52][54] - The company is exploring offshore opportunities while maintaining a focus on the Australian market [52][53] Regulatory and Community Support - Zeotech has a fully granted mining lease and is working on final permits for road upgrades, with local council support for job creation [56][59] - The project is expected to create approximately **140 new regional jobs** [58] Conclusion - Zeotech has successfully secured a major offtake agreement, positioning itself for strong revenue growth and operational success in the near future. The company is focused on advancing its core business, Auspolz, while leveraging the DSO agreement to enhance its financial and operational capabilities [61][62]