RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:50kg Supply Deal Some back of the envelope numbers:
600kg/day biomass @ 5% extraction yield = 30kg distillate/day x $15,000/kg = $450,000/day = $13,500,000/month = $162,000,000/year divide by 120mio shares = $1.35/share revenues.
At various levels of net margin and eps multiples:
| Margin | Net | eps | 5 x eps | 10 x eps | 15 x eps |
| 30% | $48,600,000 | $0.41 | $2.03 | $4.05 | $6.08 |
| 40% | $64,800,000 | $0.54 | $2.70 | $5.40 | $8.10 |
| 50% | $81,000,000 | $0.68 | $3.38 | $6.75 | $10.13 |
| 60% | $97,200,000 | $0.81 | $4.05 | $8.10 | $12.15 |
At 40% margin, that is earnings per share that is almost double the current share price. With a conservative 5 x earnings that puts the share price almost 10 x currrent share price.
They have stated they can process 600kg per day. IR has indicated they can sell for $15k per kg, so the unknowns are margins and can they sell higher volumes for the same price consistently month after month? If yes, the above numbers are feasible. If margins are higher, processing capacity increases and/or yield is higher than 5% that brightens the picture.
Rat1Race wrote: Also got the same numbers today when I emailed Investor relations. Those numbers come from Jason McBride.
He said they will be sharing more specific revenue guidance on future deals of this nature. He said the announced transaction is consistent with the current market range of $13,500-$15,000 per high qual distiliate.