Grumps Musings and predictions;
Musings:
I believe the most frustrating thing about my association with this stock is the lack of information. It seems like when we think we are almost to the promised land we get dealt another bad card. Unfortunately we are still there even after all these years.
When we started on this exodus in the pursuit of Carbon Credit sales I don’t think anyone would have thought it would take over two years just to get approved by The Gold Standard. (TGS) Then when we did get that approval, I for one, thought we were off to the races. Again, nothing. So where are we now and why are we still waiting?
Still too many un-knowns. We are approved by TGS. The next step was to have an independent appraiser/inspector visit the site in Castleberry to prove that we have the raw materials on site. Now that the inspector has been there we are still in the dark. We don’t know, How long it will take the inspector to complete his report; How long it will take the inspector to submit his report; How long it will take TGS to review the report; How long it will take TGS to issue the Carbon Credits (CC’s); How long it will take to sell the CC’s.
Is there something good in all this un-known? Yes there is. We have never been through this exercise before. Once we have traveled all the way to the end of the road (sold CC’s) we will know how long it takes to complete all the steps. Now we can do some planning.
Predictions:
I like numbers so let’s do a quick analysis.
Cycle One:
If we had 1,000 tons of raw materials on site in Castleberry when the inspector got there what would that mean. If we had purchased those 1,000 tons of raw materials for $25 dollars a ton we would have spent $25,000.
1,000 tons would produce 20,000 CC’s.
20,000 CC’s at $5 each would be $100,000
Cycle Two:
We take $70,000 of that and buy more raw materials
At $25 per ton that would be 2,800 tons
2,800 tons would produce 56,000 CC’s
56,000 CC’s at $5 each would be $280,000
Cycle Three:
We take $200,000 of that and buy more raw materials
At $25 per ton that would be 8,000 tons
8,000 tons would produce 160,000 CC’s
160,000 CC’s at $5 each would be $800,000
Keep in mind that we are continually selling the compost for a little above cost of production. That would cover all of our expenses required to produce the compost.
When you consider that we should be able to go through a cycle such as the three described above every six weeks or less you can see that over the next 3 months we could go from a company with NO income, or virtually no income in the past several years to a company that could conceivably generate over a million dollars in the next 3 months and well over $5,000,000 before the end of this year, potentially even more. And this scenario does not even take into consideration the Department of Corrections project.
That is why I remain a happy camper.
AI
