Plastic2Oil Inc (PTOI)

[xxxxcslewis]

Based on recent press releases and a little digging it appears to me the NF facility will have a capacity to process feedstock at a rate of around 17,500 pounds per operating hour. (This assumes #2 is equipped with the pet-coke residue removal system.) The first processor will process some plastic and will also provide the important function of pre-heating waste oil for the other two processors.

A yield of 85% of the feedstock charge results in 14,875 pounds of fuel or 1859 gallons of fuel per hour. Assuming operating up time for all three processors of 80% results in an average rate of fuel production of 1488 gallons per hour.

At a sale price of $2.75/gallon, that would result in monthly revenue of around $2.9M.

Assuming a plastic to waste oil ratio of 50:50 and a nominal cost for plastic(Crayola) and $1.00 per gallon for waste oil(my best guess). Results in a ballpark gross margin of around 70%.

The total employee count is now about 32. It appears the staff to operate the facility will be around 18 employees and 14 are corporate. Of the 18 operations staff, 4 are chemical engineers and it appears 14 are material handlers and operators. A ballpark direct payroll expense, including benefits, is around $100,000/month.

That puts the theoretical gross margin at around 67% with all three processors operating. So the gross profit would approach $2M/month.

Corporate overhead for the 14 other employees and other expenses should run around $400K/month. So sometime in the near future with all three processors running at 80% up time a net profit of around $1.5M would be indicated.

We ain't there yet but we sure are making progress.