RE:RE:RE:News ?
Good Post. Obviously they are fully funded. They just have not disclosed it yet. That JT is smart and experienced. $4.4M in new cash equity plus $1.6M equity on the books totals $6 million in equity. With the mining permit, OC 10 year contract and staggeringly robust operating margins they can borrow 10 million more from any big bank and lease the operating equipment. There is so much production equipment that is idle & in default around the world, taking over some existing financing contracts would not be difficult. Besides, if the project was not funded, they would have sold additional units. To really understand the magnitude of the fiberglass, filler and additive market go to www.thielekayolin.com. This company is one of the 4 large companies in Georgia, USA that produce the bulk kaolin in the US that was referred to in the tv interview on the website. Look at the 25 step process they illustrate on the website required to produce a low level product compared to that of Hudson . Compare the two processes. "$200 per ton landed in Shanghi from Georgia" is correct. I live in the port City of Savannah where the product is shipped from. Kaolin is a significant product shipped. Look at the Savannah Ports Authority website. If you check the web sites, you will immediately be floored by the capital investment in plant and equipment needed to convert kaolin clay to a facsimile of what Hudson can produce with minimal effort. At a selling price of $100/tn (vs $150 to 200 mentioned), a $.40 per tn processing cost, $2.5 million per year equipment & interest allocation, $1 million in extra management cost, 40% tax rate & 500,000 tons of production I generate a $2.50 share price by year 2. All numbers are very conservative based on my experience.(a big bank commercial lender) Remember, samples were provided to several large players. OC was not the largest!! This is a 100 year deposit. Spent the time to research this in depth. I consider this company to represent a unique and multi-faceted opportunity. Good Luck