FormerXBC Inc XEBEQ

BNN

[sjc444]

Kurt is going to be on BNN's commodities show today between 11:30 and 12.

[Ciao]

Hopefully Andrew Bell well be up to date on the NR yesterday and give short to the point intelligent questions.  This may allow Kurt time to provide some color on how BGX issues in Q4 have been addressed and that this BGX contract is validation for them in a multi-billion dollar industry in the US alone to which they have about 30% market share.

[catchascatchcan]

Agreed, this is a great opportunity to flesh out the importance of this order, and we can only hope that Andrew and Kurt do a better job of exploiting it.  Kurt is a typical owner of a technical company that lacks sadly the ability to excite a base.  It's does not come naturally to him, and that's part of the reason that XBC remains a sleeper winner as well.  He's not

[Gasmonkey]

I think Andrew Bell is off this week which is a good thing. 

[retiredcf]

It might be Frances Hordelski who has returned to BNN after being gone for a couple of years. I suspect that she's just part time filling in for the regulars when they take their summer holidays. 

[retiredcf]

It is Frances and she confirmed the 11:50 timing. GLTA

[retiredcf]

Frances started right off with the latest contract and apparently there are 8500 sites in the US that could potentially make use of XBC's services. GLTA

[Newtrader1982]

8500 sites is enough to build 40 units a year for the next 212 years that should keep them busy

[Ciao]

Too bad he didn't mention current market dominance. Current market share of the dairy RNG market is about 30%.  At about 50% market share of current potential this equates to over $6.4B CDN. Their competitors are small players. XBC will be the gorilla in the room, Kurt noted desire to expand capacity to 130 BGX units annually.

[kulewater]

That number jumped out at me as well. 11 units per month would require a significant expansion in production. Likely the reason for all the hriing lately.  Kurt also mentioned they are looking to expand their production in the US which could be the trigger for the next acquisition. Overall Kurt did a good job, I think there are still some opportunities in the way he answers the questions

[marketwatch9]

why are you expecting news tomorrow or early next week?

[Ciao]

Kulewater,  On maintenance contract value; general rule of thumb, 2 - 5% of RAV.  Seeing that this is new equipment (and proprietary), buyers usually want to buy maintenance from the hardware supplier, they won't cheap out, and XBC can likely command a price (their CSN is ever reaching, so less competition) XBC probably gets 4-5%. https://www.onupkeep.com/answers/asset-management

[Newtrader1982]

If the demand is there which I hope it is 130 yearly would be amazing roughly 240 million in revenue wouldn't that be wonderful.

[catchascatchcan]

If he's thinking that big, then I do hope we read of more manufacturing capacity adds soon.  To purchase, retrofit, scale, commision and debug takes time.  We need to be making more buys soon so that we can stand a chance of meeting demand/orders in the next 12-24 months.  That's part of the tricky nature of the positive MSA news.  It's lays bare that we are hard

[Newtrader1982]

according to their own stated ramp up they will have the ability to build 48 units in 2022 plus some that are already being built and will be built by the end of this year. That's enough capacity to at least handle 1 more contract of similar or slightly bigger size.

[catchascatchcan]

Right, so I'm not sure we'd get much immediate credit for contracts beyond that.  It's also very hard to sign up new deals when your lead time is extended.  We do have the fact that our product is in a niche on our side.  I wonder if XBC couldn't develop some trusted manufacturing partnershipes and contract some of the build-out aspects of the units to ramp