RCMW Group Inc (fka RCMW)

[compgeek]

Have you forgotten to make 5% out of oil sales (12mm)? I think 95% will be taken by CGG..

I think the share price is dropping because investors don't understand the true value of this JV. Most of us can agree that the potential gross revenue to CPOW from JV crude degummed canola oil sales is $ 12,230,000 year.

The key important issue we seem to differ on is the potential gross revenue from meal. At whatever cost CPOW is buying all the meal from the JV they will still only get back 5% in profit. If we use 253.19/mt than potential gross revenue to CPOW from the JV raw meal sales is $3,797,850 year.

500,000MT canola seed crushed * 60% = 300,000MT raw meal

300,000MT meal at $253.19/mt = $75,957,000yr sales of raw meal

$75,957,000yr * 5% = $3,797,850 yr gross meal revenue

Therefore(12.2mm + 3.8mm)= $16,000,000 yr gross potential revenue from both oil and meal from the JV.

But to understand the true value of this deal we need to take into account the gross revenue generated from the sale of the brought meal by CPOW. Can someone find out what price CPOW may sale the meal?