RE:RE:RE:firebug...estimateGood question:
Because only NOW - 7 years after launch is it doing 1 m tons a quarter, at reasonable prices.
PLS launched well, and then the teeth and the gale of the recession hit - the company nearly died.
Demand in CA fell by 60% (in Florida it fell by 85%).
So they struggled with volume and pricing for 5 years, yet had substatial fixed cost at the mine, loader, staff etc. the business was conceived to do 4-5M tons p.a. only now is it at that run rate, and selling prices are moving nicely up, so only now are then at, or above break even, and motoring fwd.
Its also a devleopment project - it takes time to make profit, it the case of PLS - its assumptions went through a huge stress test. It is testimont to management that they overcame the liquidity position (sold a property, got financing, and then retired the debt, did some raises, maybe one too many) - and now the business is in rude health.
Moreover, they are on the front foot and growing and expanding beyond SF Bay - which is clicking along at 4.0 M tpa now. Entering LA (and with higher prices), contemplating new outlets, and exploring a new resource to push trough their loader, and there fore get a better return on fixed assets.
Polaris is in a good position.
HBK is much smaller - special situation - low cost resource, close to a booming market, and literally only player in town. It will make outsized profit, with low risk. Its much smaller than PLS (PLS wantes to be a 4-6M tpa) v (HBK 1-1.5). HBK will have greater margin per ton.
HBK must get its see (and aggregate shipping) legs on!