High Gross Margin means solid earnings at even $50 per ton Gross margin for these fertilizer products was 76% in 2023 even at low fertilizer prices which is now improving.
Brraking down the most recent quarter, the additional costs beyond the production costs was just $7.5 million which is $30 million per year to Breakeven
Now, Let assume that NPK can sell 800,000 tons of product per year.
This will yield about 90,000 tons of CO2 credits at no extra costs .
Lets assume $75 US per CO2 Credit which is $100 in $ cad .
So, less $30 million per year to Breakeven, NPK earns $70 million / 52 m shares = $1,30 per share which gets us to over $10 per share .
I recall we are about a runrate of 550,000 tons this year, so it's not a stretch to get to 800,000 tons per year .
If indeed we get to 2.8 m tons per year , we would be earning over $5 per share and a share price over $40.
And that's at just $75 US per CO2 credit..