Last Night's Announcement - One to keep an eye on :-)ASX Code:...

Last Night's Announcement - One to keep an eye on :-)

ASX Code: EMM Announcement: New Orders/Business UpdateDate: 29 July 2002 - 16:38:44Market Sensitive: YesELECTROMETALS TECHNOLOGIES LIMITED 2002-07-29 ASX-SIGNAL-GHOMEX - Brisbane +++++++++++++++++++++++++LETTER TO SHAREHOLDERSI am writing to you to confirm the tremendous progress made byElectrometals this year. In the past 6 months we have receivedorders, with substantial deposits, for over $6.0 million of EMEWplants. These orders are being fulfilled in the current calendaryear, and we remain confident that we will meet our planned salesrevenue target in calendar 2002 of $6.5 million. We are alsoconfident that we will report a net profit and positive operatingcash flow for this calendar year.The orders taken this year include a large Chilean order, worth $5.1million, of which part has already been shipped and the balance willbe shipped in September, approximately 6 weeks ahead of schedule. Weare sufficiently advanced in the production of this plant to be ableto advise that our full target gross margin will be earned on thisproject.More recently we received a $450,000 order for an EMEW electrowinningplant from a UK waste recycling company. This sale will be our firstcommercial installation in the UK and also represents an importantextension of our business into the commercial metal recyclingindustry. The plant will primarily recover high quality nickel fromindustrial waste material, as well as stripping smaller quantitiesof copper from the waste.Also just received is an order from a Canadian company that is wellknown for its own mineral processing technologies, to supply a$100,000 EMEW pilot program to a major Brazilian nickel producer.This 120 day program is aimed at an application for which EMEW iswell proven, and is expected to lead to an order in 2003 for afull-size commercial plant worth in excess of $4.0 million.Our work on the full engineering design of an innovative circuit toprocess zinc-rich arc furnace dust for Smorgon Steel is alsoproceeding well, and should be completed by September 2002. A fullscale commercial plant worth an estimated $4.0 million, should thenbe ordered for construction in 2003.We have just shipped a new pilot plant for trialling by a largecopper producer in the USA, under a client-funded program extendingover several months. The applications to be trialled are for processsteps in which EMEW is already well-proven, and which offer verysignificant economic and operational benefits to the user. Wetherefore have a high expectation for future sales of commercialscale EMEW plants to this customer, particularly in a low commodityprice environment in which producers must adopt cost-reducing andenvironmentally superior strategies for which EMEW is well-suited.There are a number of other opportunities currently being pursued,some of which should lead to significant sales in 2003. Our EMEWproducts, comprising both plating and metal powder production units,are now accepted as well-engineered and superior process options in awidening range of applications. By the end of 2002 we will havesubstantial commercial plants operating in Chile, Belgium, England,Canada, USA and Australia.We remain committed to a sales plan of achieving not less than $10.0million in sales in calendar year 2003, and a net profit of at least$1.5 million. However, these targets may considerably understate whatis achievable as our unique technology becomes the world standard inlow cost and environmentally sound metal extraction.In light of these achievements, we are puzzled by the current lack ofshare market interest in our shares, which have recently sold atclose to historical low prices. These prices do not recognise that weare now a profitable company with high rates of growth flowing from aconservative business plan.The future for Electrometals Technologies Limited has never lookedbrighter, and we shall continue to do our best to explain this toour shareholders and the wider investment community.R GibsonEXECUTIVE CHAIRMAN