Eli Lilly phase 3 =$500 million+ contract If you read the MD&A report, it is said
"According to Management, approximately half of the non-residential projects use structural steel as a structural component, while the other half primarily uses concrete. Generally, structural steel accounts for about 10% to 20% of a project’s total cost, depending on the project’s nature.
Looking at the las 2 contract addition + yesterday announcement, i come up to the lower band of
that range for the Eli Lilly contracts.
So to be VERY CONSERVATIVE, i will even go lower and use 7% of the project cost instead of 10%
Phase 3 will be for $5.3 billion US or $7.155 CDN using a $1.35 conversion rate.
If DRX were to win the next phase then 7% of $7.155 billion would equat to $501 million
Can you imagine that.
DRX sales were $172m in 2021,$281m in 2022,$291m in 2023 and $331m in 2024(Year ending Jan.2024).
That Lilly contract alone would be 1.5 time the total sales of last year.
In the latest CC, when asked if they were considering another automated line,Jean Paschini
said that it was not in their plan right now but it would be considered depending on new orders.
I wonder if they were to win this big contract, if it would trigger the acquisition of another Zebau
line. Iknow that these machine are custom built to different size.Maybe they could get a smaller less costly one to be installed in another of their working bay.
Having gone through the learning curve with the first one would be
a lot easier for a second one.
I will ask that question to James Paschini if i have the chance to meet him on June 11th.
I will repeat myself for an X time.DRX stock will not go up every day/week or month.
This is normal.After a big run up stock goes down or sideways for profit takers.
But this story is FAR FAR FROM OVER.
We often hear, stick with what is working.Well DRX is working very well for us and is growing top and bottom line and will continue to do so for many years to come.
I have been investing for now 46 years and i have seen a lot of good comapny but rarely
have i been so impressed buy a company like i am with DRX.
I will be adding more to my position on any pullback.
Nice day to all.