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Bullboard - Stock Discussion Forum SOPerior Fertilizer Corp V.SOP.H

Alternate Symbol(s):  POTRF

SOPerior Fertilizer Corp. is a Canada-based exploration and development stage company. The principal activity of the Company is to develop projects focused on the production of sulphate of potash (SOP). The Company is engaged in the development of the Blawn Mountain Project (Blawn) in Utah, which involves the exploration, development and production of mineral resources and is focused on the... see more

TSXV:SOP.H - Post Discussion

SOPerior Fertilizer Corp > SOP won't see a penny in revenues for at least 6.5 years
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Post by baystock1 on Jan 23, 2023 6:53am

SOP won't see a penny in revenues for at least 6.5 years

This is not a 15% royalty as someone has claimed. Its a 15% carried interest where SOP will only receive its 15% share of profits after its share of all expenses are first paid. This means if the plant is completed in 3.5 years, SOP many not receive any income for another 3 years beyond that as all its 15% share of profit goes to pay its 15% share of cumulative expenses:
>>
The Counter-Party will also be entitled to recover their costs associated with financing and constructing the Plant and certain other project expenses once the Joint Venture starts generating revenues, prior to UAC being entitled to its pro-rata share of revenues from the Joint Venture.
<<

So with revenues to SOP starting in over 6.5 years away from now, expect a lot of share dilution as the company issues shares to pay for expenses to stay alive.
Comment by baystock1 on Jan 23, 2023 6:59am
I am talking about revenues from production from the manufacturing plant and not the revenues already received from signing the JV. Also the 6 year old report showed the capex to be $458 million, which means its probably well over $600 millin now due to inflation.