10/12/2009 - 00:00

Rio contract marks positive ’09 for Tox

10/12/2009 - 00:00

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WASTE management company Tox Free Solutions looks set to end calendar 2009 on a high, boosted by several contract wins in the state’s north, which have lifted its earnings guidance.

Rio contract marks positive ’09 for Tox

WASTE management company Tox Free Solutions looks set to end calendar 2009 on a high, boosted by several contract wins in the state’s north, which have lifted its earnings guidance.

The Nedlands-based company has had a bumper year, regularly winning contracts at some of the country’s major resource projects, including the $43 billion Gorgon gas operation.

The latest contract win was from Rio Tinto, which this week named Tox as its preferred vendor to supply waste management services for all of the mining major’s iron ore operations in the Pilbara.

Before that, Tox forecast its earnings for the 2010 financial year to reach $28 million, a $5 million increase on the previous year. Should Tox reach its target, it will be the company’s sixth consecutive year of growth.

Tox has also consistently outperformed the benchmark S&P/ASX 200 index this year, despite its Kalgoorlie industrial services revenue being affected by the closure of several mines due to lower nickel prices.

Director Michael Humphris this week took advantage of Tox’s rising share price, which has more than doubled from the $1.08 recorded at the start of this year.

Mr Humphris pocketed $455,500 from the sale of 175,000 shares on-market at $2.603.

Mineral Resources

Details of a share sell-down by directors within Mineral Resources was made public last week, part of a strategy to increase the free float of the mining services company to qualify for membership the S&P/ASX 200.

Executive director Chris Ellison netted $54 million from the sale of 8 million shares at $6.75 each, which reduces the founding director’s stake from about 31 per cent to 25 per cent.

Executive chairman Peter Wade also participated in the share sell-down with the sale of 1.7 million shares to pocket $11.5 million.

In all, 10.7 million shares were sold as part of the sell-down by directors, which has increased Mineral Resources’ free float to about 53 per cent, making the company more attractive to institutional investors.

The sell-down was done in conjunction with a $52 million placement.

VDM Group

VDM Group executive director James van der Meer has dug deep for the company’s recent $25 million three-for-seven rights issue.

Mr van der Meer subscribed to nearly 1.4 million shares at a discounted 42 cents each for a total of $579,571.

Three other VDM directors also participated in the rights issue, spending a combined $85,988.

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