Great news for the company. I guess they proved doggone wrong when he kept saying they didn't have feedstock, and to do it without going into debt to boot, GOOD JOB Beebe!
Some peeling of the onion to try and determine the kind of production to be expected from the news contained in the PR.
We all know there is 2,000 pounds in a ton, correct? So they got 48,000 pounds of feedstock.
From researching various feedstocks, some have different pounds/gallon ratios, but I will assume that PHGI planned out for the most efficient source which is around 7.5 pounds/gallon. So 48,000 (pounds of feedstock they bought) divided by 7.5 (pounds/gallon of feedstock oils) indicates they bought 6,400 gallons of feedstock.
Again, assuming PHGI has a very efficient process set up (I'll even say 100% efficient - being able to produce 1 gallon of biodiesel for every 1 gallon of feedstock) they have bought enough to produce 6,400 gallons.
When lookning at their initial supply agreement of 1.2 million gallons annually and their permit idicating a 330 day per year operation (1.2 million/330) indicates production of ~3,600 gallons/day.
So they have secured just under 2 days worth of feedstock.
CONGRATULATIONS PHGI - you didn't have to go into debt to run your business for 2 days. You should be proud. But you did have to sell some equity :( - minor downside.
How much equity are you going to have to sell to run your business for a week? A month? Who knows, and who cares - YOUR MAKING PROGRESS!!!!!!!!!!!!!
GLTYA
