Plastic2Oil Inc (PTOI)

[Steady_T]

That is the silliest thing I have heard lately. Lets say you are correct and it takes 1 day out of every 2 weeks for maintenance.

That is 13/14 = 92.8% up time for the process.

Consider that at present manufacturing utilization in the US is running 69.2% according to the U.S. Gov. 93% utilization rate looks pretty great.

http://www.federalreserve.gov/releases/g17/Current/default.htm

If they are making petroleum equivalent at $10/bbl which will sell at a premium to the crude oil price because it doesn't contain long chain hydrocarbons that have to cracked, I'm pretty sure that they will be able to turn a serious profit.

So based on the numbers we get. Number are gathered for the I-box for the process.

15 metric tons processed in 2 hrs.

1 Kg of plastic = 1 liter of oil.

1 metric ton = 1000 kg.
15 metric ton = 15000 liters of oil every 2 hrs.
159 liters = 1 bbl
15000/159 = 94.3 bbl

94.3 bbl / 2hrs = 47.15 bbl / hr.

Gasoline futures price is 2.23 a gal = $93.66/bbl
Light sweet crude future price is $80/bbl

So lets split the difference and call the output price of P2O $85/bbl

47.15/bbl/hr * $85/bbl = $4007/hr product value
less the cost of production $10/bbl * 47.15/bbl/hr = $471.50

So $4007 - $471.50 = $3535.50 / hr profit.

$3535 * 24 =$84840 / day
$84840 * 30 day/mo=$2,545,200/ mo profit

Lets not forget down time so $2,545,200 * 92.8% = $2,361,945/ mo

$2,361,945 *12 mo/yr = $28,343,347 / yr profit.

Less amortization of the plant cost assuming that is not included in the $10/bbl figure.

Do we have a number of the expected cost of a production plant?