I know this sector very well. Bought into Toxfree early and Cleanaway during their KKR and Transpac days and Bingo. My comments are my observations of the market place atm. Gingin was supposed to open over a year ago, Access waste is focused on skips, (63 bins acquired) Skips are used for heavy and bulky waste, not good for Gingin. Yellow pages indicate 28 skip operators in their operating area, 75% of them small cheap providers, probably the ones you would use as they are $50 cheaper. Scrap metal is not M8s market, it’s a volatile commodity and making 300k on 7m input of scrap is a head scratch. Key Directors were Hyams and Fisher. Hyams is ex Veolia, Tox and Cleanaway, excellent commercial credentials. Fisher raised $100m for Tellus landfill operation. Both gone. Fisher within 6 weeks. For Gingin to take any volume, it needs to take it from another landfill and they are all short on volume, hence EMRC Redhill’s class 5 application as they know they will lose volume when the incinerators start. There isn’t a spare 50k tonnes in the market. As Gingin has a geo textile lining system, the first 10 plus metres of inputs will have to be compacted slowly and carefully so not to compromise the liner, your not at full operating capacity for a while. Majors are not buying landfills as they have enough of their own, that’s why Veolia sold Gingin in the first place. They control the price they charge internally to keep their wheels business competitive. Cleanaway Dardanup has just extended its license, 35 years plus left. Veolia/Suez at North Bannister has 50 year plus life, Redhill, Tamala Park, Cockburn all want volume. Fogo Organics processing by most local authorities is removing the organic fraction and the incinerators want the calorific value of the plastics. If I’m wrong, then I’m wrong and I will learn but if I’m right, this is just a disjointed service offering, not ‘a ecosystem of services’
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