Share price update
I was listening to the CC again on the weekend and note Richard Halka said 20k cells is over a million dollars in revenue, so means they're selling at about US$300 per KWhr at the cell level which puts revenue capacity of the plant at only $150M per year on 500Mhr capacity if they just sell cells instead of the $300M i used before. And last time i forgot to add in the costs of operations which will likely eat up 10-15% of gross profits so all in all i would cut my share price by four, so realistic share price target at full capacity at the cell level only would be about CAD$20 per share using a PE of 50.
But if they gain value added by selling the modules the revenue may be higher so 150M i think is a mininum revenue target.
Also, i think the modules are a great idea for logistics reasons because shipping finished cells as individual cells must be expensive and time consuming to pack for shipping, whereas by putting them into the modues and laser welding makes the packing much easy, safer and cheaper for shipping. So see great benefits for savings in logistics and transport possibly by selling modues over individual cells.
Also,i rememmber they have a pateent from a few years back now that coats the cells in a thermal polymer layer that enables better themal properties of a modue and packing of cells which i think quite valuable at the module level. So makes a lot of sense.