Plastic2Oil Inc (PTOI)

[the big guy]

The original post was about labor costs, not construction labor costs. There is quite a difference.

In terms of the construction labor, the way I look at it the machine has a capital cost of about 1 Million dollars (pinky at face like Mike Myers), and that would be being conservative. I came up with that with a factoring approach, factoring in the equipment cost at $200k and looking at the percentage of equipment cost on other jobs I have worked on. On other stuff i worked on, it was about 20%, hence the 1M figure. That would take into account all of the laborers and skilled trades that go into building the machine.

Actually, your post does not make much sense, as you must be talking about the lowest form of laborer at $18/ hour. I know for a fact that skilled trades like pipefitters, ironworkers and the like can make 6-figure incomes if they work overtime.

What i was talking about is the labor required to run the plant on an ongoing basis, not to build it.

I can only compare with what I know. The word "operator" in my sense means someone with some education and training that understands the control system and all of the possible failure modes of the system as well as all of the hazards inherent in the system, and the required safety practices to be followed. In this system you have : oxygen, a ram feed system that could potentially rip someone's arm off, heat, etc. There is plenty of room for an accident.

If JB i the only one that knows the process control system and he won't document it, then they are in some trouble.

I am comparing that operator with an Engineer. I worked in an Engineering office that had engineers and managers and we worked on construction jobs. The role of the Engineering group was to perform required engineering analysis as part of a design process prior to Detailed Design, Procurement, and Construction. In that environment I used an average cost figure of $100/hour that went into the capital cost of the final product.

If you want proof, look in the F/S at the cost of the Islechem guys. They are equivalent.

My contention is, and always has been, that the operating cost is going to include at least one guy like that (from Islechem) acting as an "Operator". That is someone considerable more capable than someone working a forklift jamming plastic into the machine. This is the $10/hour X 2 figure that has been thrown around to arrive at the $10/barrel cost estimate.

Look in the F/S for proof of my contentions... the Idlechem (typo.. let's just leave it... LOL). I have seen it but could not find it last time I looked.