RE:any idea?The last press release dated September 26 stated:
"With the ability to manufacture over 120 cases per shift"
I interpet that to mean at least 15 cases per hour. That gives us a theoretical maximum capacity of at least 131,400 cases in a year running 24 - 7. If each were sold at; let us guess $300 per case we would have potential sales of $39,420,000. (If they only sell for $200 per case gross income drops to $26,140,000 etc.)
Margins should be much better than that of the bulk emulsion product's because it is a better product than anything out there. Let us say it is at least 30%. If so Nordex could have gross income of $11,826,000. Is the market large enough to support $39 million in sales of wall control products and can Nordex actually sell that amount of product? How many big underground mines are up that way? There are quite a few, maybe they can sell all their production.
It is my understanding that the Butt Buster and Eze Charge products can be shipped longer distances than the range of the bulk product . Theoretically, sale of the product would thus be limited by the cost of the transportation. If the customer were wiling to pay the freight I believe that it could be shipped right across the country. Check with Jim Taylor on that.
In Australia the wall control products were Johnex's entry point into some of the largest mines in the world (As in the Olympic Dam). Blasters love the product. It is quick to use. It is clean. You simply slit the ties that keep it coiled and slip it into the hole connect the cord and blast. There is less poor quality ore blasted with each round so grades come out higher. There is less muck on the floor. There is less rock to grind and mill. There is less scaling, The walls and ceilings are smoother. The financial controllers love it because it decreases the overall cost of each blast by about 20%.
Best of all it makes the blast safer. Remember the fatalties recently in Sudbury and in Manitoba? If even one of those lives were saved it would have been money very well spent.
Even though you don''t ask the question this product gives Nordex an edge over the competition. With this line of products Nordex will be able to leverage additional sales of their underground bulk products.
I keep waiting to get an invitation to join the party for the grand opening celebrations! Every day I check the mailbox, but so far nada. Have a good night!