Still like to know how and when
all these contracts present and future finally offset the $5 MILLION ( and counting) deficit. The tendency to pin Magnum's financial salvation on new compounds is crude DD fraught with several key unknowns.
How long does the R&D take to totally satisfy prospective customers. How much will the R&D cost in consultants and tweaking of machinery both in terms of cash and time spent. Once the recipe is decided on for the new compound's application it will still require strict QA analysis and testing throughout the R&D process which conceivably could send us back to the drawing board more than once. We are not told what the first new compound application will be yet so currently impossible to estimate or even speculate realistic time frame before we are cash positive.
I'm not scolding you optimists indeed I commend your chutzpah but just a friendly reminder expansion can make or break ANY company, Magnum no exception. You better know management will be disciplined enough in the original business plan to start clawing away at the mounting debt toute suitely mon ami. Agreed the new creditors will have seen the plan intimately. It's quite another to implement the plan through to fruition on pace and on budget. Yes I as you, can smell greener pastures for Magog and Magnum but we are not out of the debt servicing woods yet my friend not by a long shot.
I understand fully the temptation to dream of ever increasing truckloads of cash rolling in the freight doors @ Magog Recyclage. As long as dreams and reality can be easily distinguished no harm done. Let's be clear though there are many hurdles yet before that happens so best not to blur the two or IMO your DD is flawed from the get go.
Best... Rich
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