Revenue going forward.
We know Gene doesn't give guidance. Has anyone tried to estimate sales for 2010 into 2011? History has shown it's impossible to judge a run-rate by one quarter due to lumpiness in sales. Nevertheless, there seems to be some solid hints in the recent press release. Is it safe to read between the lines?
"...Since commissioning the new Arcoplate mill (mid August), it has been working at full capacity satisfying the demand for the new 3/4 inch or 20mm material whilst the other Arcoplate mill has been fully utilized with the ongoing demand for the thinner overlay materials."
So what we have currently is both mills working at full capacity, with demand expected to remain steady or increase due to the rollout of super-arcoplate. I think they've done over $4 million in qaurterly sales once with just one mill, but that probably included some backlog. I'm going to guess both mills together could generate an average of $6 million in sales/quarter, assuming full capacity. Does this sound reasonable?
But there's more:
"...As a result of the increased level of interest in Alloy Steel's Arcoplate product by local and international mining companies, the Directors of Alloy Steel are planning for a further two production mills with substantially increased capacity to come on line in early 2010."
I'm not sure if Gene intentionally meant to imply that each of these two new mills will have substantially increaserd capacity vs. the older mills, or whether he meant to say that there will be substantially increased capacity overall. It is somewhat ambiguous. Any thoughts on this?
AI
