RE:RE:Rio Tinto BCONTVentures wrote: Plasma torches for iron ore pelletizing cost approximately $2 million a torch. Yearly recurring revenue in the form of maintenance and replacement parts is approximately $275,000 per torch. Note that these torches have an approximate useful life of 20 to 25 years.
Client B (Rio Tinto/IOC) has previously requested an estimate for 130 torches (for Rio/IOC's operations at Labrador). So, for 130 torches it would be $260 million ($2 million a torch x 130 torches) initial order. Plus factor in $36 million a year in recurring revenue for maintenance and replacement parts ($275,000 a torch x 130 torches). If one does an NPV calculation on this, this is over a billion dollars.
And this is only for Rio Tinto/IOC's operations at Labrador. Rio has other pelletization plants worldwide. The addressable market for plasma torches (to replace conventional diesel burners) is huge (as there are multiple players in this market, not just Rio Tinto).
Thank you BCONTVentures, it's alot more than I ever imagined haha. Wow that's Incredible...Ty for the information