Plastic2Oil Inc (PTOI)

[the big guy]

What JBI needs to do is to make a lot more fuel and $$. I put together a spreadsheet that performs a profitability (ROI) calculation over a 3-year time period. It is applicable to a potential customer planning to buy a processor from JBI.

If you assume an up-front capital cost of $2 Million and a Cost of Capital of 4%, JBI would have to make on average $170k/ month from P2O production in order to break even. That is, to repay the 2 million over 3 years. To achieve an ROI of 20%, they have to do $205k/ month in production. They are nowhere near that right now. last quarter they did a measly $15k.

The 20% figure is based on my experience in Capital Projects. Money is tight in companies, and there are lots of competing projects and "entities" (oops) looking for funding...

These machines are just test pieces that do not achvee anywhere near the production required to make P2O a viable business.