raging bulls sighted TOX technical pattern is very strong and...

raging bulls sighted TOX technical pattern is very strong and price is well supported. My estimate on annualized revenue numbers going forward towards end of 2005 and into 2006 may fall into the $10-20 million range (up from last years $4 million).

This is based on an extrapolation of ASX reporting as follows. Port Headland plant increases capacity by 30% (in the next few months), tank cleaning business generates contracts (should have already started) Kwinana facility starts two new contracts (announced). These contracts should lift annualized revenues to around $10 million per year. We will get a clearer picture here at the end of the current quarter.

TOX plans to upgrade their thermal desorption plant in Kwinana at a cost of $1.25 million late this year. Assume contracts for this plant to fall into (IMHO) the $5-10 million per year range. They also plan to enter the Perth industrial liquid waste remediation market and have a joint venture cooking with an English company specializing in larger scale industrial/hydrocarbon remediation projects and have permitted a facility in Karratha to handle this. IMHO assume another $5 million??? in revenues to kick this off. All of these projects have been announced while the revenue numbers are my "guesstimates". The total revenues then fall somewhere around $20 million per year.

There is an additional blue sky element in the valuation of their thermal desorption technology as the revenues soar and cash frees up to expand plant capacities and applications. At four times revenues a valuation of $80 million is clearly "do-able" going into next year. That puts TOX at 20 cents per share plus the blue sky for the thermal technology patents and future applications.

My guesstimates assume that the bussiness continues to build and hold contracts over the medium term (currently booked nine months out) and that the English JV results in a credible boost in work. Go back and read the ASX releases on the English JV and visit their web site and you will get a very pleasant suprise.