excellent quarterly report Excellent result really.
What impressed me was the blurb about the upgrade of the TDU at Kwinana.
The following is from Cunningham's research report on TOX:
As a result, we have upgraded our own 05/6 profit after tax forecast from $2.8m to $3.5m, based on sales of $8.8m. We are not without hope that this forecast could be exceeded too if current trends are maintained. Note that neither this nor our 06/7 net profit forecast of $5m include the benefit of a possible upgrade to the thermal desorption unit at Kwinana, where the opportunity still remains to increase production 5 times following a $1.25-1.5m retort upgrade. Potentially the impact on profit could be very significant, and figures of $5-10m additional gross profit have been mooted.
In addition, EBITDA of $950,712 is more than 20% higher than original forecasts and is closer to thr $3.9m EBITDA profit forecast I came up with. I emailed Steve about this a few days ago and a got a reply about this last night. I posted it on here late last night but I'll repost it soon in case it hasnt been read.
In addition, 2 possible acquisitions should be enough of a hint to the market that TOX needs a full revaluation up.
It is still trading at a pe ratio, which implies that growth would be fairly minimal in coming years.
The news of acquisitions and plant upgrade should warrant a pe ratio of 20+.
it is the first time, the market has been told that there are possible growth plans being enacted on.
If the TDU can be upgraded before the end of the year, who knows how much profit is going to be derived next year.
One things for sure, I aint selling and TOX is heading in one direction.
Cheers to all holders
Defabstar
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