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]

Zeotech (ZEO) Conference Summary Company Overview - **Company**: Zeotech (ZEO) - **Industry**: Concrete and construction materials - **Project**: Auspos project aimed at decarbonizing the concrete industry Key Points and Arguments 1. **Market Opportunity**: Concrete is the second most widely used material globally, with approximately three tons per person, presenting a significant opportunity for innovation in production methods [4][10] 2. **Product Introduction**: Auspos is a high reactivity meta choline that can replace up to 50% of cement in concrete, enhancing performance while significantly reducing carbon emissions [9][10] 3. **Environmental Impact**: The use of Auspos can lead to an 80% reduction in carbon emissions compared to traditional cement, with the potential to eliminate 230,000 tons of carbon annually from one production train [10][39] 4. **Production Capacity**: Initial plans include a nameplate capacity of 300,000 tons per year, with potential to double this with additional production trains [12][13] 5. **Financial Metrics**: The project is projected to generate approximately $1 billion in after-tax cash flow over a 20-year mine life, with an EBITDA of $1.6 billion and an NPV exceeding $400 million [15] 6. **Job Creation**: The project is expected to create around 140 new jobs in the regional area [15] 7. **Resource Availability**: Zeotech has a mining lease for 20 million tons of material, with only 5% of total land holdings explored, indicating a long-term supply capability [26][28] 8. **Simplicity in Processing**: The production process is straightforward, requiring no refining, which minimizes costs and carbon footprint compared to traditional methods [21][23] 9. **Market Demand**: There is a significant demand for decarbonization in the concrete industry, driven by government regulations and the need to reduce carbon emissions [35][36] 10. **Strategic Partnerships**: Zeotech has signed an MOU with Holcim, a major player in the building products industry, indicating strong interest and potential for collaboration [38] Additional Important Information - **Location**: The production site is planned near the Port of Bundaberg, which is advantageous for logistics and accessibility [19][20] - **Future Plans**: The company is currently working on a Definitive Feasibility Study (DFS) and aims to start shipping Direct Shipping Ore (DSO) by Q1 next year, with full production of Auspos expected by 2029 [43] - **Government Interest**: The project aligns with government initiatives to reduce carbon emissions, potentially opening avenues for funding and support [40] This summary encapsulates the critical insights from the Zeotech conference, highlighting the company's innovative approach to revolutionizing concrete production while addressing environmental concerns.