Commodore Applied Tech (CXI
By: KativaT
Reply To: 112 by archangel3 Thursday, 23 Dec 1999 at 3:25 PM EST
Post # of 115
Greetings ~ Notes and thoughts from the meeting.
I'm posting this on RBB in protest of the return of dicksimple and all his aliases on yahoo. Naviscope (download at their .com website) works there though and once i get him on ignore, it will be more pleasant to read that thread. I really prefer RagingBull though so we'll see.
Well, whoever guessed there would be 8 shareholders present was over by about 50%. There were about 20 attendees and 80% of them were directly involved with Commodore.
The thrust of the message was that this is the year of commercialization and profitability. The focus was not on ACWA and chemical weapons where most of our attention has centered in the past. The SET technology has been embraced by its early users and the contracts will be rolling in this year. We can look forward to big bucks from mixed waste in Hawaii, Japan/China, Bluegrass, Harrisburg, Utah etc IMHO. "This is our year." to quote one of the officers.
They are closing Marengo Ohio as part of their continuing consolidation and reducing operating costs. Staff has been redeployed to contracted field operations and Albuquerque ~ working w/ CAS to promote teamwork and efficiency.
They are bidding on MUCH larger and many MORE contracts for the use of the SET technology. There has been significant interest from much bigger users than they've seen in the past. Requests for info from much larger users who appreciate SET's uniquely suited technology for the treatment of mixed waste (radioactive + toxic/hazardous materials). (30 billion dollar potential mkt).
They?ve filed 6 new patents this year to protect their technologies.
SET offers a simple solution to the problem of heterogenous mixed waste materials... big advantage over thermal processes. An example of their disposing of a 55 gal containing kitty litter like absorbent material of mixed waste (low level radioactive waste mixed with high levels of PCBs and solvents) clean up debris, personal protective gear (garments, goggles) and a dead raccoon was offered :-) It was pointed out that the fixed site unit at Envirocare is ideal for this because after the volume is reduced by « it can be solidified basically in cement and then stored at the low level waste below ground site there (there are only 2 of these sites available).
They have treated 9 different mixed waste streams successfully including solids, liquids, sludges, tars and oils. And have submitted bids and identified near term opportunities in the tens of millions of dollars for mixed waste. (They have the only EPA permit for treating PCBs in a portable system.)
Their contract pricing should be very very profitable going forward and should be reflected in the bottom line.
A client comment about their portable unit? ?we?ll go where you are?. Very successful and very pleased.
They are now the only co. on contracts w/ Navy in Hawaii? other contractor dropped out. Hope to go back there soon.
There was much discussion about depleted uranium, DF6 (difluoride uranium 6?) the by-product of fuel enrichment process of nuclear fluids. It is currently stored in 3 major US sites... 700,000 metric tons and growing. The gov't has issued an RFI (request for info) for privatization of disposal. There are 6 current technologies available and CXI is the only non-thermal process. (Thermal process has problems w/ slagging, shuts system down, very inefficient.) Uranium is highly pyrophoric and difficult to treat via a lengthy and costly process. Fed govt will issue a RFP (request for proposals) for 1 or 2 tech processes this year 99/00 to treat this waste for $3/kg. Currently only 2 meet the cost target - SET was independently evaluated by SW Labs and showed to have the lowest cost and be extremely successful using their patented process. The feds have stated they want 1) the waste to be converted into reusable materials 2) non-thermal (CXI only non-thermal). The end products of CXI's tech could be reused (and actually sold profitably). Commodore would partner w/ a larger corp to move thru the bidding process in a timely way ? teaming discussions underway with big stature co.?s. But we're talking a 2-3 billion dollar contract for the 700k metric tons over the years. Our unit is one-step and nonthermal.
Paul Hannesson discussed the ACWA debacle at length and I was satisfied with his presentation of their side of the story. They anticipate (but CXI doesn?t count on ANYTHING w/ them anymore, no trust) the Army's announcement in January of funding for the demo. What Hannesson stressed was that had been the ONLY integrated solution ~ all the others were piecemeal ~ and that they knew that their process would be the least costly IN APPLICATION. The gov't's requirements for the demo unneccesarily inflated the demo costs and bumped them into the bottom three which were not funded. He acknowledged that Commodore lost credibility big time with investors but that they had presented the situation as they themselves understood it ? they were the best technology and they had fully expected to be funded then.
There should be an announcement early in the coming year for contracts with their Japanese partners for work in Japan and China. Teledyne is spinning off from Allegheny-Teledyne but the LLC will continue.
Much emphasis on CAS as a leader in management services in the industry. Plans to take one compatible additional services and expand their primary core business. CAS manages WIPP, quite a feather in Commodores' cap. CAS had become increasingly profitable over the past few yrs. CAS handles their "back office" administrative support. Having CAS people present nationally on many DOE sites has increased the awareness of CXI's treatment options.
There was some lengthy description about the mixed waste niche? DOE stores and manages 500 million cubic meters and another 100 mil tons of soil in this category. Also 2000 mixed waste streams at 36 DOE sites? many of these have time tables locked in that are currently being triggered.
Another targetted market is the 110 commercial sites w/ need for treating and drying nuclear fuel rod assemblies. CXI has a patent file for the successful utilization of SET for this. The current alternative to wet storage (swimming pool type storage which nationwide is at 70% capacity) is a thermal process which takes a long time, is highly controlled and dangerous. SET tested by DOE w/ Univ of Idaho and to date very successful cold process? ?Real opportunity? for us in an on-going business.
The co. is enthusiastic about the MOU?s for fixed facilities? while portable units are useful and popular, fixed sites do not need new site permits and allow stockpiling, storage and increases scheduling ease and accelerates opportunities. Plus benefits to partnering w/ Envirocare etc allow disposal as well on site. They expect to be starting w/ Envirocare at the beginning of the new year. Should be highly profitable for both parties. More and more, the big companies want to ship the stuff off-site for disposal. (eg Oak Ridge).
A 3rd site is being negotiated now (future announcement with details.)
They can build a new SET unit in 3-6 months? cost for S-10 is less than 2 mil. Compare in value to incinerator which is closed down at Oak Ridge for greatere than 50 mil cost.
CAS has extended the Oak Ridge contract 5 yrs.
Los Alamos ? Decommission and deactivation contract in the millions.
Extended the Rocky Flats contracts.
Will be extended along w/ the Kaiser Hill team.
On-going DOE ? WIPP in Carlsbad.
They have new specialized sampling equipment that is allowing them to id samples and put forth solutions for what to do with it (for plutonium and other nasty stuff)? a new niche for them.
Received an independent industry supplier rating in the top 12% for such items as quality, cost, technical and responsiveness.
The 2.5 mil financing deal 11/99 resolved their immediate cash flow problems.
They also secured a 1 mil equipment financing for SET? equipment as collateral. Were pleased that equip. finance company had faith that this wouldn?t be something they?d get ?stuck? with.
Big point repeated? decreased the burn rate. Turning toward profitability? in the black in Y2K.
Kirkpatrick and Nunn still advise the T-C LLC and they still have good relationship. Some discussion of other consultants on a project by project basis? Clyde Frank, Shelby Brewer, Jim Janis (spelling on all these a big ???) who have been very helpful.
My take on the whole thing? it sounds like this may indeed be their year of commercialization of SET and profitable quarterly reports. ACWA is a big deal but my guess is no huge bucks from that quarter for many moons (I?m not counting the demo dollars which will be worth something from a PR point of view) but they are probably going to do VERY well with just the SET and CAS contracts in 2000.
|
