United Industrial Services (UIS/ASE) Message Board

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Gold/Mining/Energy : United Industrial Services (UIS/ASE)

UIS 3.210

+2.6%

Jan 9 9:30 AM EST

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To: VisionsOfSugarplums who wrote (85)	3/9/2000 8:31:00 PM
From: SAM-DAN	Read Replies (1) of 90

Well we finally have learned from a reliable source some excellent news re UIS that gives this stock the needed agreement to move to the next level of achievement. This source within the Alberta Government has indicated that UIS 's EIA application has been approved by Alberta Environment. This means that UIS will be able to increase production up to 1 million tons per year to meet market demands. The one caveat is that the Company still requires NRCB approval.This is a 45 day period in which anyone who opposes the project for environmental reasons may ask for a hearing. The last time UIS went through that proceeding there were no objections and since there are so many positives for the Peace River area and the Province of Alberta, they do not expect any objections to be raised. Automatic approval follows this period. Why is this so important to UIS?Mainly because UIS can now approach all present users and potential users of silica in glass manufacturing ,etc.with a guarantee of unlimited supply. Prior to this ability ,UIS found resistance of present manufacturers to place orders although UIS's product is of finer quality and less costly than the competition.Producers feared that UIS could not meet the supply needs of these companies so retained their old suppliers. Another benefit will also be realized by the Province of Alberta.The major costs of any glass manufacturer includes the costs of electricity and natural gas as well as the cost of transporting the raw silica to their plants.Over the coming years this should lead to a number of major users of silica establishing their plants in Alberta to reap the benefits so apparent in the list we have just enumerated. Last year UIS refined 100,000 tons of material from their deposit. Imagine the economies of scale they will be able to achieve with the limits on their removal raised to the one million ton level! Of course this will not occur overnight. They will increase production as they achieve contract volumes that require such increases. This could take 3 to 5 years to achieve such maximum levels but it certainly greatly enhances the earnings potential of the company next year and in the ensuing years. A major accomplishment by Management to achieve this License and an indication of the co-operation they are receiving from the Alberta Government. Investors should see that the fundamentals of this Company have provided a significant increase in the value of the Company and that should be recognized in the value of the shares when the Market realizes these benefits. Again, as always, do your own DD and take your positions in this stock to achieve the benefits that will accrue. We understand that more significant news may be revealed in the near future but have ben unable to confirm. The report we received today should be enough to return the stock to previous highs but one can never predict how markets will react[at least we never have had that ability].Good luck to all.

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