OTCPK:PILBF - Post by User
Comment by
seatleslimon Nov 10, 2014 6:49pm
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Post# 23115261
RE:Q3 Call - high-lights, low-lights, deeper read
RE:Q3 Call - high-lights, low-lights, deeper read
I saw it mostly like that. Although I'm not sure you have the ex-quarry issue correct. I believe that is actually higher margin business. The customer is paying for shipping directly. The rest of their business is a higher price, but has the transportation imbedded in the price. Ex-quarry lowers the asp, but not necessarily margins, nor prices when indexed for that business. I think if you go back to a conference call a year or so back, it is explained. (I'm not 100%, but think I have this right.) Also, I didn't hear that the Redwood City issue was going to last into 2015 meaningfully. At any rate, they don't control that and it is all upside upon being corrected by the dredging. Also, I wasn't aware of stale pricing on 2013-negotiated business. Somebody should have asked what those volumes are. 4.4% isn't terrible, but it sounds like it would have been much higher when those volumes are "marked-to-market". On value: The asset isn't going away and operational results will be going up for a long time. Not sure where it should sell, but I think they can get 6 or 7 per ton on 8mm tons on a matured/stabilized basis, admittedly a few years out.