RE:RE:RE:PLEASE PLEASE COMMENT Forget about RGX overhead and focus on plant economics. Your $6.6M cash flow no. would mean a very low 1.5 yr payback period. When RGX gets this module 1 running smoothly it can prove the 1.5 yr payback. This would be attractive to others who could license the tech from RGX. They would build their own module for $2.5M and get a return of $1.65/yr less a royalty to RGX.
AlfTanner wrote: lscfa, unfortunately, there is no evidence that they can run just one module continuously. My guess is that the vats and pipes get clogged with sediment, and the spend just as much time cleaning things out as they spend running the process.
Even if they ever do get to 4 modules with continuous production, my numbers only show production of about 5500 ounces of platinum per module per year based on the realistic grades they will likely be processing. That would be revenue of $5.5M per module or $22M for the factory. I am thinking operating profit of 30% or $6.6M per year. Unfortunately, the company's fixed overhead cost is running around $2M per quarter or $8M per year. Even with 4 modules producing continuously, they would be losing $1.4M per year.
IMHO, Pendura's "forward looking statements" about expected production and profits were a complete load of BS. Investors were misled, the money was all squandered on a bloated staff, and the process is a failure. This thing is a boondoggle.