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JonETrader

02/10/12 8:12 AM

#10568 RE: mikeg2 #10567

OK, take your math and add a multiple of probably 5 to it, based on the production figures JohnII mentioned, the Ultralight weighs only 13 oz. That includes all of the other materials used in making the armor - titanium strike plate, spectra, wrap, etc. so the plate itself may only account for 1/2 of that weight. Let's just assume that and even round up, that a 13 oz plate contains 8 oz of Kryron. That's 1.2 pound. I would also assume 2 shifts and maybe 3 at max capacity as they planned to run in Tucson at some point. Maybe assume 2.5 shifts (20 hours) So, given those, here's my 8am crack at it:
500 lbs hr x 20 hours = 10,000 lbs/day. Thinline uses .5 lbs of Kryron = 20,000 plates/day, cut by 25% just to have a factor in there = 15,000 plates/day at even $75 considering the cost of other materials in the plates construction = $1,125,000/day x 20 day month = $22,500,000/month x 12 = $270 million/year.

Now to blow your mind even more, I think that 500 lbs/hr is per furnace, so if that plant had 5 or 10 furnaces, imagine the capacity! This example only assumes the one product line and we know they are working on even more. Good stuff.
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buckyboy

02/10/12 8:49 AM

#10572 RE: mikeg2 #10567

Capacity is great and is a definite must know for customers to ensure smooth order estimates.

A plant running at full capacity can produce finished products cheaper than a plant that is not.

Do not assume the company will generate enough on-going continuous orders to maintain full capacity for market cap predictions of a stock. On going revs plus identified back log will eventually drive the PPS.

Anyway, this could be a very long discussion, but I gotta get ready to trade.

BORK bringing their first furnace on-line is a very very big deal (I have 11 years in metals processing from big steel to tantalum powder). Believe the CEO when he says that this event is huge, because it is.

Best wishes.
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chikimba2

02/10/12 7:09 PM

#10594 RE: mikeg2 #10567

I should have paid attention in math! You guys are great!