RE: For a Guru great?
my understanding, 65mm additional capex to get plant operating at 40,000mt in sasky
Ballpark GEA will firm up the split but I take it to mean about 30% appx 20mm of that will scale up the isolexx to 3000 tons appx 9% yeild 90+ purity.
the other 70% is to fully integrate a Vitalexx stream 45mm grab the other 9% yeild = 18% another 3000 tons of Vitalexx. right now the meal post isolexx production os sold as waste,like flushing money down drain. painfull,as this is wherethe real money is made.On a side note hard to believe someone with that equipment in use would not do a JV given the numbers,we supply the raw meal they grind out new protein and split revenue,no capex required,but what do I know,probably a flaw some where in that plan.I digress
6000tons ttl avg rev across all lines 10,000 ton 60mm rev fully scaled up with 50% margin= very profitable over a 20 year life of the asset . 20-30mm free cash flow,the multiple on the stock for a multi national is huge.Hence why Chris says stay focused on ROI vrs short term capex. 3 year payout just in sasky for the investment,its a 20 year life asset,after tax losses and sred credits captured the net inv might be minimal for a multinational with revenue and a big balnce sheet.
greenfield 130mm produce 12,000 tons 120mm revenue,but cost efficiencies built in so ROI could be higher. also if add on to existing facility with infrastructure may be materially less to build.
none,of this includes other value adds like toasted meal etc
i still say key is do people believe it is scaleble,we know what happened to the solvent process when we went from small to big,could it happen here,I dont know,GEA says no and BIOEXX is prepared to put performance guarentees on it so they must believe,? is will the guys that have the cheque book
there is a deal to be done its at what cost to Bioexx
we shall see