OTCPK:PILBF - Post by User
Comment by
teachon Jan 23, 2016 5:32am
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Post# 24486567
RE:Business Update
RE:Business UpdateSo next year we can expect 3 million tons from San Fransisco at about $15/ton (assumes they can get 5% price increases, hopefully more). That gives us a Price to Sales ratio of 1.9 times. The drop in expected sales pretty much explains why Polaris went for $2.50 to $1.40.
We were banking on 4 million tons from San Francisco, which was metioned several times by management as a realistic total for that market, plus the start up of Long Beach which was to bring in 500K tons to start and up from there.
Margin improvement is great, the Canadian dollar is great, the efficiency of the production is great. We need the last piece of the puzzle to fit and that is sales.
Let's just say 2015 really didn't boost the market's confidence that they can deliver increasing revenue while maintaining healthy margins.
Let's hope they can deliver in 2016.