Let me tell you why the recent organic growth announcement is so impressive. The company is investing US$6 million to increase production by 7,500 pounds. If you multiple that new production by the prevailing market price you will arrive at about US$12 to 13 million dollars in incremental revenue per year. In Q2 (last quarter that has been reported) the gross margin was 51% while quarterly revenue was running at US$9.4 million.
What the company has just told us is that they are going to add more than a quarter's worth of revenue to the P&L on an annual basis by the second half of 2021. I hope that the market understands how great this move is.
This does not even factor in the non dilutive debt deal that is coming that will pay for acquisitions. I am going to do some more number crunching but I am definitely moving my price target above 2 dollars that I mentioned after this latest announcement. Will keep everyone posted when I come up with my new price target.