OTCQX:SREMF - Post by User
Comment by
canbeam2004on Jan 10, 2013 5:00pm
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Post# 20822638
RE: More to come...
RE: More to come... Love the French Midard, even though I can only figure part of it out, but it helps me learn. Thankful for Google Translate.
While there is a 70% commitment to the production, in a normal business model, the last 30% is usually where the profit comes from. I'm not sure how the purchase price is determined over the term of the deals. Can anyone enlighten me? In other words, having these types of commitments is great, but the bottom line is the producer and the distributor both have to make money. If the end sale price doesn't cut it compared to the production costs, do these types of arrangements allow either party to exit the agreement? I assume the sp has been stuck under $1.00 as investor's haven't been convinced of the profit margin yet.