BIN 0.31% $3.23 bingo industries limited

Ann: Bingo Market Update and FY19 Outlook, page-465

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  1. 2,848 Posts.
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    Thanks for taking timeout to explain that. Gives me a feel of what's going on and the rough numbers.

    I would also add that the opportunity cost of having a truck/man driving to QLD over 24 hrs instead of 2 hrs to local tip means you get a lot less utilization of your capital, i.e. you need a lot more trucks to dump to QLD compared to dumping in NSW, if the waste is coming from NSW. Extra trucks depreciate, cost maintenance, rego and need a certain ROI for its owner to capture decent margins. 

    I guess it depends from which perspective you look at. Maybe if you own the trucks and are charging out to customers for the longer drive and truck use, then you recover it. But if you have the contract for waste disposal for a site, then you want to use as less trucks as possible, minimal fuel, man labor, wear'n'tear and dump as quickly as possible, not have your man and truck off for a 24 hrs expedition, unless the tipping cost difference can be justified.

    I'm just getting to understand the business, so happy to be corrected on any wrong assumptions.
 
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