International Zeolite Corp. V.CNZ

RE:Product Cost vs Transportation Costs

[dart321]

This is what I have been able to find out. The cost of shipping by rail in Canada for a minimum of 22 tons is $93 and $97 for shipment to Ontario and Quebec. Shipments over 1000 tons are 10% less. Don't know what our costs are for drilling,blasting,crushing,shipping to the plant then processing the different products. The cost for doing this for our competition down south is aprox $38 a ton. The average selling price from our competition is $360 per ton U.S. Their shipping cost by rail into Canada are higher and duty is charged on the import putting their selling price miles above us. If we ship into the states we can still undercut them substantially due to the dollar exchange rate. Hope this helps.