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Technology Stocks : Thermo Tech Technologies (TTRIF) -- Ignore unavailable to you. Want to Upgrade?

To: monu who wrote (4065)	5/7/1998 8:58:00 AM
From: Poweruser	Read Replies (1) \| Respond to of 6467

Monu, Be careful what you read and what you assume goes together. For example the fact that they are putting up a 400TPD plant does not mean that they will process that much. In fact their criteria for construction is 75% capacity under contract (not 100%) Secondly the permitted capacity of the transfer station is not what may be going through it either - the release talks about potential. Also the fact that the transfer station takes waste at $75 does not mean that a TT plant will also take waste at $75 - much more goes through a transfer station that organic waste! Obviously if TT intends on starting at 300TPD then only 1/3 of the transfer capacity is organic! Remeber, this is a new and separate business from TMP's - and new revenue streams and needs to be considered as such. PU

To: monu who wrote (4065)	5/7/1998 8:53:00 PM
From: Casey	Respond to of 6467

monu: << In their latest release they talk about the 800 tpd plant bringing in $56000. Correct? Now, what I don't like is that the real numbers are always for us little people to figure out. Why can't they ever be plain and real??? According to Dave P's phone call with Rene, Rene said to begin with this Northward station will be doing 200 to 300 tpd. The news release says it will be 400 tpb in Northward which is capable of having up to 800. Why do they even mention $56000 when all it can do is mislead, unless that is the intention? >> Northwood is a transfer station, where they are paid $70 - $80 per ton to recieve waste. This waste is then compacted and they then pay haulers to truck it away (to landfills) at a cost of, say $30 - $35 per ton, thereby making a profit of $40 to $45 per ton. They are permitted to handle 800 tpd, but from Dave's notes, Rene indicated that they will start out handling 200 - 300 tpd, in the beginning. They will, I presume, be approaching businesses to handle their trash problems, charging them ~$70-80/ton. Gradually they will get up to their permitted limit of 800 tpd, at which time the gross revenues will be $56,000 tpd. Now that's one business. It will be profitable. The second business is to be complimentary to the primary business of a waste transfer station. The owners of Northwood, Ontario Thermo Tech (TT and their 50% partner, Mr. Ambrose) will provide a put or pay contract to Oshawa Bioconversion Inc. to build a 400 tpd TMP for 80-85% of the 400 tpd waste at $40/ton. This plus the Miracle Feeds purchase agreement for the end poduct of the TMP will back the off balance sheet financing required to build the TMP. Ontario Thermo Tech will jointly own Oshawa Bioconversion Inc. This is the second business. This should make profits for the owners in line with the figures in the Dillon report. This is a symbiotic relationship. Instead of paying a 3rd party ~$x per ton to truck away the waste, they pay themselves the $40/ ton to yield an additional ~$23 per ton from the sale of the end product of the TMP. All in the family. From what I understand, the 400 tpd TMP is permitted in addition to the 800 tpd limit of the transfer station. The foreging has been deduce from the Dillon report along with Dave's notes. Casey