These are certainly valid questions and concerns. I wish they had provided more clarity on the status of the scrap plant/rev stream in the PR and CC. The big question to me is whether the large scrap contract they got early last year for 10x23,000 tons of scrap valued at $100MM is still on the table or not. We know that they delivered only 1/10 or less of that contract last year. So if that contract is still good and can all be delivered this year (may be even at a higher per ton price ?), then there's a lot of revenue from there alone this year. I'll try to clarify that with IR or Worden.
Last Sep/Oct when they bought 6 (?) new cutters, I remember having seen an email from IR saying that the cutters would help increase effective annual capacity to about 800 tons/yr. Now they just bought a bunch more cutters, so I think we can expect a serious ramp up of scrap production as each cutter costs about 10K if I remember correctly.
There is much to be desired for the quality of guidance and delivering on promises for this company. Also getting a quality auditor would much enhance their credibility. But with all the PR/liquidity problems they are having, nobody can say they are a fraud. And that's to me is currently the biggest concern with investors in this space. If they can ramp up scrap production and build on the increasing incoming orders for the ore trading business, there is a decent chance that the SP will easily triple or much more this year from the currently very depressed level. Time will tell.
All my opinion and I stand to be corrected.
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