Replies to post #240601 on Plastic2Oil Inc (PTOI)

[exogyra]

Are you saying Crayola alone can supply sufficient feedstock to satisfy your calculations? I make 17,500 lbs/hr x 24 hrs x say 20 days uptime/month result in free supply requirement of 3,500 tons/month. Math not my forte, but ... Seriously? ex.

[xxxxcslewis]

It would make sense to me to postpone retrofitting #2 until Q1 of next year. I expect it will cost $250,000 or so and take #2 out of production for a month or so.

I think it would be best to maximize revenue in Q4 to to erase all doubts.

[d2006s]

Net Profit of $1.5 million per month is fantastic
and your projections seem reasonable/conservative.

Here's to the very near future

[Rawnoc]

Great post, but what happens when oil is $150/barrel or fuel prices 50% higher than recent prices?

Oil $110 per barrel now.

Won't it be ironic if the original thesis of $60/barrel -- making fuel at $10 and selling it at $70 -- proves to be too conservative because fuel prices rises to $150+/barrel and JBII ends up making $100+ per barrel instead of $60.

[fourkids_9pets]

nice quality read .. 4x

always a pleasure to digest

Based on recent press releases and a little digging it appears to me the NF facility will have a capacity to process feedstock at a rate of around 17,500 pounds per operating hour. (This assumes #2 is equipped with the pet-coke residue removal system.) The first processor will process some plastic and will also provide the important function of pre-heating waste oil for the other two processors.

A yield of 85% of the feedstock charge results in 14,875 pounds of fuel or 1859 gallons of fuel per hour. Assuming operating up time for all three processors of 80% results in an average rate of fuel production of 1488 gallons per hour.

At a sale price of $2.75/gallon, that would result in monthly revenue of around $2.9M.

Assuming a plastic to waste oil ratio of 50:50 and a nominal cost for plastic(Crayola) and $1.00 per gallon for waste oil(my best guess). Results in a ballpark gross margin of around 70%.

The total employee count is now about 32. It appears the staff to operate the facility will be around 18 employees and 14 are corporate. Of the 18 operations staff, 4 are chemical engineers and it appears 14 are material handlers and operators. A ballpark direct payroll expense, including benefits, is around $100,000/month.

That puts the theoretical gross margin at around 67% with all three processors operating. So the gross profit would approach $2M/month.

Corporate overhead for the 14 other employees and other expenses should run around $400K/month. So sometime in the near future with all three processors running at 80% up time a net profit of around $1.5M would be indicated.

We ain't there yet but we sure are making progress.

===
4kids
all jmo

[JBIIRULES]

Quote;... monthly revenue of around $2.9M.

Thanks for sharing your insight into a profitable future for JBI!!!

[steelyeye]

Thank you for these helpful calculations.

Based on recent press releases and a little digging it appears to me the NF facility will have a capacity to process feedstock at a rate of around 17,500 pounds per operating hour. (This assumes #2 is equipped with the pet-coke residue removal system.) The first processor will process some plastic and will also provide the important function of pre-heating waste oil for the other two processors.

A yield of 85% of the feedstock charge results in 14,875 pounds of fuel or 1859 gallons of fuel per hour. Assuming operating up time for all three processors of 80% results in an average rate of fuel production of 1488 gallons per hour.

At a sale price of $2.75/gallon, that would result in monthly revenue of around $2.9M.

Assuming a plastic to waste oil ratio of 50:50 and a nominal cost for plastic(Crayola) and $1.00 per gallon for waste oil(my best guess). Results in a ballpark gross margin of around 70%.

The total employee count is now about 32. It appears the staff to operate the facility will be around 18 employees and 14 are corporate. Of the 18 operations staff, 4 are chemical engineers and it appears 14 are material handlers and operators. A ballpark direct payroll expense, including benefits, is around $100,000/month.

That puts the theoretical gross margin at around 67% with all three processors operating. So the gross profit would approach $2M/month.

Corporate overhead for the 14 other employees and other expenses should run around $400K/month. So sometime in the near future with all three processors running at 80% up time a net profit of around $1.5M would be indicated.

We ain't there yet but we sure are making progress.