HPQ Silicon Inc V.HPQ

Turnover 1000 TPY Fuma Silica plant?

[Frosch1]

Can you help me? How much turnover will a fuma silica 1000 tonne plant/reactor make per year make? Price per tonne? The approximately 5000 USD per tonne that has already been mentioned in this forum sounds low...

[Frosch1]

Anyone an idea?

[lscfa]

Made-in-China.com https://www.made-in-china.com › ... Fumed Silica Price Hydrophilic Fumed Silica with Purity of 99.9%. US$ 2800-3500 / Ton. 2 Ton (MOQ).

[Frosch1]

Thank you. This means approximately 3 million US dollars (4 MCAD) per 1000 TPY turnover per year. That doesn't sound too exciting. According to the presentation, the 50 TPY plant will cost 2 MCAD. What will be the capex for a 1000 t plant... Waht are rhe margin... How you see the profit after tax for one 1000 plant?  

[Mostlyserious]

The fumed silica market has been estimated at US $1.3B in 2022 as reported by the companies.  In not too many industries does one company capture a huge percentage of the market.  Granted, I can't think of examples of a player coming in and supplying the product at much less than half of the current price.  Sometimes big users have their own downstream suppliers so there would

[lscfa]

A 1000 tpy plant would cost US$9.5M.  If fumed silica can be sold for $5000/t then annual revenue = US$5M, ebitda = US$3M and payback period is 3.17 years.

[Frosch1]

Thank you!   Bernard is talking about 50 plants in the next 10 years. Payback about 1.7 years.    With 10 plants = 50 million US$ annual sales and 30 million US$ ebita With 50 plants = 250 million US$ annual sales and 150 million US$ ebita   The Small Cap Shattering Silicon Metal (youtube.com)

[lscfa]

I was wondering if co. ever disclosed payback period. Using 1.7 yr payback means co. is assuming fumed silica prices are $9,300/t.  Why did you ask about prices if you were aware of this video chat where the figure $10,000 was thrown around?     USD Capacity 1000 tpy Capex 

[lscfa]

Jan 10/24 NR discloses payback period of 1.7 years.

[Mostlyserious]

Provide a time stamp on the video.  When Bernard talks about 50 plants in 10 years it is not the plan but he was answering the question in a way that he wants to say that it depends on the demand and he can meet whatever demand their is. If he had an order for 20 plants for 2 years, I think he could try and make that happen.  Things happen when good money can be made, financiers and

[lscfa]

The market is $1.3 billion/yr and growing at 5% a year, or $65 million /yr.  If a 1000 tpy fumed silica reactor generates $9.3M/yr then there is demand for 7 reactors per year. Co. says incumbents are at full capacity and expansion is costly and getting costlier as carbon taxes increase. So HPQ ambitions are do-able.  

[Kani0ikan123456]

Fool yourself, leave other people especially innocent ones out of this rubbish!

[Mostlyserious]

I don't think that is the logic but the point is that if everything pans out, HPQ can do well.  Even Bernard slows down the talk beyond the pilot plan.  One step at time.   50 plant comments are at around the 34 minute mark of the January 11/24 interview and at around 11 and 21 minute marks of the February 1/24 interview.  At the last reference he murmurs even 5% of 5

[Newsday101]

This is as much credibility then mostly  price quotation about the SIOx material...