Looking at releases
the company has 7+5 tons p/h now
if we assume 12 tons p/h X 20 hours X 340 days we get about 80,000 tons
The release for the 3000 ton order was estimated at $600,000 (not accounting for splits to seller)
If we extend 80k tons x $200 (price factor from above) we are looking at a ball park of 16mm of biz beginning to take shape
JG (CEO) indicated they were looking to bring in more capacity as fast as they can. Lets assume we double (conservative) in the next 8 mo we are looking at forward potential revs of well over 30mm.
Now for any that say this is pie in the sky...
ONE coal plant can burn 10mm tons a year of dirty coal. In Europe there is a mandate to reduce coal emissions and bio coal is a known and accepted means to that end. (Note our contract for 3000 tons is for Europe for exactly that purpose.
Point being the market is VAST not even taking into account many alternate uses for bio-coal and sister bio-char.
A couple of models
Lets say an entrepreneurial outfit approached a coal company near a rich wood producing supply center and offered to manage a cheap supply of emission lowering product....coal co puts up land and storage shelter, the papermill/wood co, offers very cheap supply and this little co brings the skill and manages the operation.... volia a pop up factory w very low cost, start up built into model...win win for all....and massive scale
or/and
This same entrepreneurial company looks across the land at the many small operators and with smart investors decides the mission is to consolidate this business as fast as possible....sort of like how united rentals grew amazingly fast in the equipment rental business...low threshold for entry...the key factor for success being achieving scale....
of course in addition are the ongoing direct contracts being pursued or in hand now...
if we look at these type scenarios then we should be able to see that a company with a just a cap of 3-5 mm now has a some pretty strong prospects for growth based on both actuals upcoming and looking out
food for thought
