Nice contract win and finally an explanation of the business...

Nice contract win and finally an explanation of the business plan. Note that they've sold a few Plascon plants in the past but the prevoius owners (from my industry references) became a bit lazy - e.g. they took 6-8 weeks off each year - and so were running the plant sub-optimally. The sale to a Mexican company shows two things; a) that the Plascon process is internationally marketable and b) that there is a market for selling complete units, hopefully all of them on a B.O.O basis. If so this means long term income from each contract won.

The deal with Thiess is also very interesting. I'm not sure what will come of that but there's certainly some very bad practices in place with off-shore drilling. Contaminated drilling mud is currently dumped offshore, when other countries re-treat the stuff. Now the dispersion offshore is actually not much of an environmental problem (dispersion dilutes the stuff to meaningless levels) but politically is easy to get some momentum to treat the stuff.

The revenue figures are one thing, but I'm keen to hear what the margins are...I suspect that they are in the 40-50% area. Not sure what the contacts are on, though.

So lets say a net result (no tax payable, they'll have one hell of an interest bill, though)... of $4m...or 6.7c a share...or say only 7.5x. This is a screaming buy...but I say that without having met management.