Lets sum up a few things.
One, they are not using the setup from the presentation where they only use 3 big tanks for a whole lot of smaller tanks. The 3 buildings actually consist of 6 big tanks for 72 smaller tanks. It seems they are focusing more on margins here and less on tonnage.
People need to be wary about presentations in general. They can use advertising techniques and make things look better than they are in reality. They cannot do this with press releases or the SEC filings because they are at risk of facing shareholder lawsuits.
The press release states that 3 buildings equal 10,000 MT designed capacity which should equal 7,500 MT targeted capacity. This is a good number and my calculations are in line with those numbers. In the long run they can probably boost those numbers but it all depends on whether they want to improve margins, grow different species etc.
What this means for 2016 and 2017 sales is, 1,500 MT and 7,000 MT respectively IMO.
The question that remains is, we are supposed to be at 15,000 MT designed capacity after Stage 1 completion and not 10,000 MT. The Merkur admission document discloses a risk in this matter and it does so for a reason. But the way things are playing out, I expect them (SIAF) to split the difference with the JV partner and work something out. So SIAF doesn't end up taking a $50M charge. However, the company may be able to provide some clarity in this matter.
