broker31 Jan 2013 10:33
by stats12
Mon, 28 Jan 2013 20:58:00 GMT
W H IRELAND have updated their target price to 3.6p - I have included a few snippets from the new note as cant post the whole thing on here.
Global plastic consumption is 100 million tonnes per annum, of which less than
25% is currently recycled. One of the big problems is how to deal with mixed plastic
waste – historically it has been expensive and time consuming to sort and most
production processes cannot handle mixed polymers.
The waste plastic recycling process that has been developed by ERT, Powder
Impression Moulding (PIM), is able to effectively handle mixed plastic waste
streams. As a result PIM opens up the possibility of manufacturing products from
waste plastic where it would have been technically unfeasible or prohibitively costly
to do so in the past.
The potential is substantial. To exploit PIM, ERT is employing a technology
licensing business model. Technical and commercial proof of concept has been
achieved and initial licensees secured. We expect an accelerating ramp up going
forward.
Based on the roll-out rate we forecast for licences and JVs, we see modest
revenues in the next couple of years but the business steadily gathering
momentum. By the end of the decade we see group revenues at £8m per