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Argex Titanium Inc. ARGEF

"Argex Titanium Inc is a Canadian company producing high-grade titanium dioxide (TiO2) pigment. The company has developed a chloride-based technology, which is environmentally sustainable. The white pigment produced by Argex is to be used in high-quality paints, plastics, specialty, and other applications."


GREY:ARGEF - Post by User

Bullboard Posts
Post by juanito1on Mar 18, 2014 10:28am
242 Views
Post# 22335393

Doing the Deal with Users NOT Producers

Doing the Deal with Users NOT Producers
Remember my numbers to allow outside producers to use and implement the Argex technology in order to make better profits.( See Below)..What I didn't show was the potential if Argex did the deal with the end users like PPG, Sherwin and othe plastic companies.
these companies could easily pay as much as $1000/ton because they have more to gain...doubling the profits to Argex and Everyone wins...except for the current producers with old technology...here are the new numbers:
PPG and others would pay $1000 to Argex...Pay $1000 for the production of their TiO2 so their all in cost would be $2000 as apposed to the $3500 they are paying today. And still under the cost of the current producers like Dupont today.
Argex would double their profits to $400Million or $3/share in earings in Yr 5 and $1Billion or $8/share in earnings in yr 10...vs. what i suggested below...5 yr target at a 20X PE...$60/share....10 yr $160/share...vs my numbers below:

You have to ask yourself..why would a large Chemical company sign up with Argex to put in 10X50,000/ton plants around the world?? It is called profitablilty and lowers cost.

Today the Chemical company sells their TiO2 at $3500/ton and their cost is Roughly $2500/ton making a profit of $1000/ton...enter Argexs plan to charge the producer $500/ton to use its technology....Their cost decrease to $1500/ton so they can make $1500/ton profit.....increasing their profit by 50%...cool

Now lets take it back to what it means for Argex...lets look out 5 yrs then ten yrs....say at the 5yr mark they have partners using their technology making 400,000 tons....and at the ten year mark..making 1 Million tons...still only 1/6th of world production....

Remember...the cost of the new plants is NOT Argexs...They just need to collect the cheque....that would mean they could earn 400000X500/ton= $200 Million/yr

and 1MillionX$500/ton= $500 Million in yr ten...with the other 5/6th of world production coming their way!!!!
Read more at https://www.stockhouse.com/companies/bullboard/argef/argex-titanium-inc#8olZeA0qso6hrAst.99
Bullboard Posts