Kibush Capital Corp. (DLCR)

[JPS02]

The first set of agreements is comprised of:

1. Two rolling purchases orders to plywood factories in PNG (Papua New Guinea) at a max rate of 1000 cubic meters per month each.

- This part of the PR did not disclose the price per cubic meter. However, for the purpose of this post I am going to make an assumption and take the rate of $100 USD per cubic meter presented in the next part of the PR, see below, and assume this is the rate to use:

= 2 purchase orders x 1,000 cubic meters x $100 per cubic meter x 12 months = $2,400,000 in potential revenue per year (unverified)

2. Additionally, the company will be able to sell the logs unprocessed straight from the resource area to their factories at a rate of $100 USD per cubic meter.

- This part of the PR did not disclose the potential volume of unprocessed logs. However, for the purpose of this post I am going to make an assumption and take the 1,000 cubic meters volume presented in the previous part of the PR, see above, and assume this is the volume to use for unprocessed logs:

= 1,000 cubic meters x $100 per cubic meter x 12 months = $1,200,000 in potential revenue per year (unverified)

3. The next agreement is with an exporter who will take as much as 4 containers per month (30 cubic meters per container) for export into India, at a rate of $650.00 USD per cubic meter.

= 4 containers x 30 cubic meters per container x $650 per cubic meter x 12 months = $936,000 potential revenue per year (unverified)

Based on the limited information available in the PR and the assumptions that I had to make above for the missing information items, I have calculated a total potential revenue of $4,536,000 per year (unverified) from the three components presented above that I have not validated.

I do not have information on DLCR's profit margins to be able to estimate net cashflows to equity.



Source of extracts above from 6/10/20 DLCR PR:

https://www.globenewswire.com/news-release/2020/06/10/2046229/0/en/KIBUSH-CAPITAL-INC-DLCR-ANNOUNCES-THE-SIGNING-OF-MULTIPLE-LONG-TERM-SALEjS-SUPPLY-AGREEMENTS.html

Go DLCR!