Tom,

I am sorry, but your question got buried in all the emails and I neglected answer it in a timely fashion.  That rarely happens.... hope this helps:

In our tolling arrangements we aim to secure revenues in two forms. 1) a fixed fee per metric tonne of dross processed, and 2) a bonus based on increased metal recovery, the value of which is of course directly tied to the underlying commodities price.

So, to answer your first question, yes, the price of metal will directly impact a portion of the revenues generated in tolling, and this will work to our advantage when dealing with higher priced metals, such as zinc.  

The standard practice in the tolling industry is either option 1) or 2). Often tollers will charge a fee per metric tonne of dross processed, or simply purchase dross on the open market at a portion of the days LME (London Metal Exchange) commodity price. Our pricing structure is an equal combination of the two, enabled by the unique positive economies of our DROSRITE™ technology, which will allow us to have the stability of a tolling fee, combined with the upside potential in metal prices. The downside risks present in having a portion of revenues tied to a volatile commodity will of course be managed with a strong hedging strategy.

As a side note - since you pointed out zinc, an interesting point to consider, is that zinc is denser than aluminum. That means that a DROSRITE™ furnace of equal size will have a higher throughput for zinc dross than it will aluminum, which equates to lower operating costs per tonne of dross processed.

Thanks for posting here.

Sincerely,

Peter