In that straw I posted on EGL's PFAS update today the last line was meant to read "I think they can go on with it" not "I think they can go with it", not that it matters too much. I'm not going to make any edits to a straw that already has 14 upvotes (as I type this), as that would reset to zero. Unlike Forum posts, where you can fix up little typos like that without penalty.
Point being, the company got themselves into a fair bit of trouble during the period before Jason Dixon accepted the CEO position, and they have been doing OK since. Developing and proving up the commercial viability of the PFAS tech is progressing well, and they are building a good order book of "work in hand" (i.e. contracted work) within their other 4 divisions, so I can see the investment thesis playing out OK so far. The exclusive Turmec agency agreement for Australia is a bonus that Jason brought to the table, and is significant as Ireland-based Turmec is the global leader in turn-key recycling plants. EGL have been appointed as Turmec's partners here in Australia and as well as clipping the ticket (2% commission) on all work that Turmec wins over here, EGL also get a percentage of all spare parts for Turmec's plants that are already operating here in Australia - such as these:
Case Study: Central Waste Station in NSW, Australia - Turmec
Patons Lane (Bingo) RRC Hybrid Dry & Wet Plant - Turmec
That Bingo case study hasn't been updated since the initial construction stages it seems. Here is Bingo's site write-up on the facility:
Patons Lane Recycling Centre | Sydney Recycling | Bingo Industries
One of Bingo's largest facilities is located at Eastern Creek and accepts ALL building waste now INCLUDING asbestos:
Eastern Creek Recycling Centre | Sydney Recycling | Bingo Industries
These Turmec plants process all building waste, separating metals, timber, cardboard, paper, plastics and other recyclable materials and then crushing up the waste bricks, stones and concrete and converting it into an aggregate product that is ready to use in landscaping applications or as a road base. Green waste is also turned into mulch. Some of these recycling plants, like Eastern Creek, also accept asbestos but I assume it has to be delivered separately and in accordance with all relevant laws and regulations rather than mixed in with general building waste. So in general terms, trucks bring in skips from building sites, empty them at these sites, and the facilities then recycle almost ALL (like over 99%) of everything that came in those skips.
Some of the newer sites have greater recovery (or diversion from landfill) rates than the older sites, with their best plants (like Eastern Creek) capable of diverting and recycling or repurposing 99.1% of building waste, as outlined by Jason in his meeting with us last October - which starts at the 58 minute mark of the 5th last meeting on the Strawman.com meetings page (i.e. scroll down right to the end and count back to the fifth last - you'll see Jason Dixon and EGL listed on the right side) which was recorded on October 8th - https://strawman.com/meetings
Further Reading:
https://www.bingoindustries.com.au/sustainability/environment/diversion-and-circular-economy
https://wastemanagementreview.com.au/bingo-report-highlights-18m-in-recycled-product-sales/ [October 2020]
https://www.turmec.com/case-studies/etmrecycling/
Recycling Equipment Solutions - Our Work | Turmec Case Studies
https://www.turmec.com/case-studies/central-waste/
These are recycling plants that work, and work efficiently to divert most of the waste that goes through them away from landfill. As global leaders, Turmec have become the gold standard in waste recycling plants, and EGL get a 2% commission on all Turmec sales throughout Australia, from new builds and mods, to consumables and spare parts.
Disclosure: I hold EGL shares.
Yes @ShangriLa That's exactly the way I understand it, based on the wording in their announcements and what Jason told us back in October. Jason did mention that there is often upselling involved because these recycling plants often use boilers or furnaces which EGL's Tomlinson Energy Services division (which they bought from the RCR Tomlinson administrators) can service or upgrade, and the exhaust systems that handle the emissions from those boilers and furnaces can also benefit from EGL's TAPC solutions - Total Air Pollution Control systems to reduce or eliminate any potentially environmentally-harmful emissions.
EGL's Waste Services division is the local Australian distributor and agent for Ireland-based Turmec, and Paul Gaskett is the man there at EGL to contact for all Turmec-related enquiries. Paul and Jason had the Turmec agency before they joined EGL, which was awarded to them (on the basis of what they had achieved with Toxfree Solutions) when Turmec took all of their local staff back to Ireland at the start of the pandemic. Paul and Jason bought the Turmec agency agreement with them to EGL because they felt it would work better from within an engineering company like EGL who have a focus on environmentally-sustainable solutions and improving environmental impacts.
Where there are additional engineering services or other serves provided by EGL, my understanding is that yes, that is invoiced separately and all revenue goes to EGL. The 2% margin on Turmec gear, parts and consumables was the number Jason gave us in October.
Disclosure: I hold EGL shares.
I'd say the ASX speeding ticket has been quite beneficial to the company's share price! Quite impressive.
Many thanks @jwrostagno27, and that probably explains. IMO the company is remiss in not having updated the market at the time of that game release, notwithstanding it providing earlier scheduling of it - continuous disclosure is the issue, particularly since this is the company's bread and butter business.
I couldn't agree more, Andrew. A fast trigger finger was perfect for the Wild West but has no place in investing