The Golden Lounge

[MikeDDKing]

SAM/JBII

Rawnoc gave you a good answer on the $130K purchase.

On the $10/bbl cost I certainly haven't put together a spreadsheet to verify this. However, here are a few things that I know that make that number quite reasonable:

1. In many cases people will pay them to haul off the plastic. My understanding is that this isn't true in all cases but essentially the plastic is free.

2. The plastic-to-oil process gives off natural gas that is used to power the process. Therefore they have zero energy cost for the conversion.

3. The catalyst used in the process is very low. I don't remember the exact price but I believe it is only $0.02-0.03/gallon.

4. The only other major cost I can think of in the process is the labor to put plastic in the machine. I seriously doubt that will push the cost over $10.

5. There is another company (Envion) that is making P2O processors that cost $7M each. At that price JBII is way more economical because they can make the processor for much less. I forget JBII's price per processor but it is in the $200-500K ballpark. Envion has costs that are consistent with JBII's claim of $10/BBL. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=45296609