Don't worry be Happy
From an earlier Mike post(below)......besides the conference call and subsequent independent report validated and exceeded most expectations of purity, and production. The 12th will only let us know how much capital/longer they have to continue to seek a partner.
After the conference call only positive message board thoughts and actions, now mostly doubts while the facts have put to rest the fundamental questions, can they perform with sufficient volume and purity.
Can you imagine no one wanting this breakthough product? Unless retailers don't/can't incorporate it into their products? Or the price per pound is not competitive? It seems likely they will get a JV partner and they will build many more plants eventually......And I go back to Chris Scharr's statement--the best opportunity in 50 years? He seems to be a straight shooter, and reliable from my observations.......my 28 cents.
smlmedlge
The scale back of operations seems to concern some.
Before Nov 14/11 BXI was trying to produce increasing volumes with high purity as profit stand alone company using solvent.
That did not work and sp was 11 cents. A new plan was not to make profit with volume sales but to prove the new non solvent process could be scaled up to higher volumes at profit. A JV would have to found as now we know it would take 65 million to get Saskatoon to full profit capacity.
This scale back to 2 days is necessary and prudent to conserve cash on hand until a JV is announced. To-morrow I am sure he will expand upon that and calm the market’s fears and probably why he chose to answer questions at the call at 9:00 am before the open and not at 10:00 after open (avert speculative fever)
I would not worry or put too much negative spin emphasis on the scale back in operations. The whole thrust from Nov 14/11 to now is to DEMONSTRATE the actual successful process of protein extraction which they have with increased volume and purity over 90 % and not to TRY to make a profit with 24/7 production (which can’t be done on this small scale anyway)
The GEA study confirms a go for engineering scale up so :
A 40,000 metric tonne Saskatoon plant at full capacity can produce 2,000 mt on Protein Isolate per year
(remember 25 % protein from the seed =10,000 x 20 % recovery= 2,000)
2,000 mt x $ 11,000 per ton of Isolexx (> 90 % pure) = $ 22,000,000 revenue
Cost is $ 65, 000,000 capital outlay
The Minot Plant is double capacity so 80,000 mt gives $ 44,000,000 at a capital cost of $ 135,000,000
The five plant model begins to take shape now with 160,000 and 320,000 in China.
The current market cap of BXI at 27.5 cents is about 62 million
With a 65 million capital injection form a JV there will be a full capacity profitable Saskatoon plant with a good ROI.
After a JV what will be the market cap of BXI and resulting share price even without the second and other multiple plant scenarios. More than 28 cents !!
Mike