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Replies to post #268004 on Plastic2Oil Inc (PTOI)
05/11/14 6:48 PM
John was optimistic in his statements. This was a time when he was raising money. Everyone on Wall Street does that. If you're selling something (shares) you paint the best possible scenario... advertising 101. Plus, perhaps all of John's statements may still become reality if you let the sector and technology evolve. If a baseball player told you they could hit a home run, you watched them play a game and they hit a triple but no homerun... Are they a liar? Let them play out the season and they just might hit one.
Running the process is expensive for jbi. It's like they developed an automatic sheep shearing machine but have no sheep. In fact they have to pay sheep herders to bring their sheep from hundreds of miles away to demonstrate the process. It makes much more economic sense to sell a sheep herder a machine than run it themselves.
I've done the numbers and there is a lot of upfront money and liabilities needed for JBI to run the prox themselves. While I do not believe Niagara can make oil for $10/barrel... It may be closer to reality for the right proc buyer who has all the feedstock and infrastructure already in place. The $10/barrel statement was made before John knew certain things... like how HTF would be required. However if he really was making oil with the early processor prototypes for less than $10/barrel but they were small scale, could only run short periods of time, output poor quality fuel and broke down often... was he lying? Once he got funding he was able to learn more and develop p2o into a much more robust and controlled process. Ultimately it ended up costing more per barrel in cost, but the environment inside the kilns were monitored and controlled by computer, fuel type was able to be chosen with the flip of a switch, fuel quality was excellent, continuous cleanout, 3000lb/hr feed rates could be achieved at 40+ day long runs, feed stock could be liquid or solid... where none of that existed or was planned for before.
It has been a learning process and now they have a flagship processor they think they can sell. I'm a shareholder and I'm stoked.
AI
