RE:Leasing, probably a good idea for Pyro and client A!Yes we Peter stated today :
As I have stated several times this evening on this platform, and at the risk of repeating myself, the only reason we decided to pursue this strategy was that we believe we could make a hell of alot more money leasing. Really, nothing more than that…plus recurring revenue at that!!! Who wouldn’t want to rent something out, year in year out, as opposed to a one-off sale and then having to go look for a new sale?
ramuntcho wrote: Leasing their first torches is a prudent way for these iron ore companies A, B and C to begin experiencing this new plasma technology because there is no proven long-term history in their activity field. Modelling is necessary but is no guaranty for an extended period.
Leasing a 3M$ torch that Pyro will depreciate in, let’s say, five years will need a monthly payment that will cover the full $3M value over that period, provide the cost of maintenance, and yield this asset that will highly exceed the initial amount. The iron ore company ought to pay much more year over year than the buying price it would have incurred if it had bought... the cost of insecurity.
If the torch is still fully operative after being depreciated, Pyro will keep making even more money with its lease contract. The iron ore company boards will probably be more prone to buy instead of paying high monthly fees when the product has a long term proven history.
Maybe I am out in the left field with these thoughts! What do I know?