for suffering electrometal shareholders, page-3

Watso

I too am an EMM holder. But I consider its performance over the last 6+ months indicates it has finally turned the corner.

A long time to bring its revolutionary electrowinning technology to market, but surely the evidence now is that it has delivered the goods. The big contract they won last year to deliver a plant in Chile is indisputable evidence surely. A A$5+ million order, which they delivered under budget and under time shows they are capable of winning and delivering serious contracts.

The announcement yesterday of a business venture with a major player in the world engineering and supply market for the equipment they supply must confirm they have a product of merit.

A quick look at their website indicates their EMEW system has very impressive capex and opex advantages over other systems. For example, compared to the commonly used Merril Crowe system for silver electrowinning, EMM can offer savings of 50% and 65% respectively. This is serious competitive advantage.

But the really exciting stuff with EMM is its ability to electrowin metal in powder form, rather than solid cathode metal. And this for copper, silver, zinc for example. My understanding is that at a time when solid copper is selling just below US80 cents a pound, copper powder can fetch US$6-8.00 a pound (happy for any with more info on this can confirm). LIkewise, silver powder and zinc powder sell at a serious premium to the solid metal.

All this makes the EMM system of electrowinning an extremely attractive product. Add in its ability to address a range of market niches not accessible to other technologies and the future looks bright for EMM.

They have been long on promises of reaching commercialisation and profitability in the past, and that has worn thin for some. But the latest contract wins and demonstrated ability to deliver large scale orders suggests to me that the company is about to deliver. This latest announcement suggests too that the cognoscenti in the industry are sitting up and taking notice too.

Based on announcements last year, the time should be soon for news out of EMM on results of it trial with Smorgons of EMM's system to treat Electric Arc Furnace dust to remove zinc. Good news on that - with Smorgons moving to build an initial demonstration plant (worth from memory about $4 million to EMM) and market EMM's technology in this regard internationally - would also ignite some serious interest in the stock.

Plenty of info on their website for those interested, and an interesting (commissioned) research report on the company and its prospects.

Good fortune to all who sail on the good ship EMM.

S