OTCPK:MGMXD - Post by User
Comment by
materialsgirlon May 29, 2017 10:06am
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Post# 26295281
RE:RE:These are big, cumbersome projects that take years gather
RE:RE:These are big, cumbersome projects that take years gather Just an add-on comment about "ramping up".
In some businesses, it can take a long time to reach nameplate capacity.
A new car factory can take a year to iron out all the bugs. A big gold or copper mine can take 12 to 18 months to get out the kinks and optimise processes and reach 100% capacity. Some big potash mines take 2 to 5 years to climb up to targetted production. Big tar sands projects likewise, can take several years to hit full intended capacity.
I was just making the point that wind, solar and small hydro projects take a matter of weeks to debug the structure and arrive at full production.
Of course, as Carpy said, the profitability can improve over the years as depreciation expenses are reduced and mortgage interest payments drop as the outstanding principal drops.
However, if the company expected that it would take 15 years to get going (2010 to 2025) this sentiment was never shared with investors. Very few investors are happy to own fixed price shares for 15 years and then enjoy modest returns after that.
mat