MVTG FAQs:
1) Do you know how the relationship between KEMIRA and Mantra looks like? I am not sure I understand how 2 companies that should be competing against one another are co-operating?
2)I found on wiki that the average price of formic acid in North America is around 1250$/ton, and Europe is 800$. BASF just opened the ONLY facility in North America producing this chemical. The price of this chemical will definitely fall. How is Mantra going to compete if BASF took pole position? How will their 20% margins look like? I hope that they don't only depend on tax credits.
3) If CO2 emitted at the Lafarge plant will soon be used by Mantra, do you know if the agreement between them is available to the public? I wonder if Lafarge will just give Mantra anything for free or just to evade CO2 taxes. (I would probably want a piece of their pie as well.)
4) How many phases are there going to be before the Richmond plant is fully operational?
5) Being the rather novice "trader" that I am, I can't help but feel slightly frightened by looking at MVTG's 1 year price chart.
It's hard for me to understand how from 2-3 cents (on high volumes) the company went to 20 and now hovers around 10. The price jumps also don't correlate with any relevant PR's ?
MVTG FAQ Answers:
ALSTOM is the one that would buy MVTG out. $5/share is about the lowest buyout price the majority share holders will accept, that includes the CEO who owns 20 million shares, insiders own 25 million. OS is 57 million. This has been discussed since 2008.
Licensing with royalties per gallon of produced product for the license is also a good profitable model for the MVTG ERC alone. Many successful, very profitable companies used and use that model.
The fuel cell, now that the patent is issued, is an entirely new ball game for MVTG, and is still not really reflected at any value in the stock price, and it could turn into a billion dollar surprise by itself!!! The fuel cell was not even on the radar till recently when the patent was issued.
KEMIRA would be more interested in making the market for the Formic acid produced by MVTG customers, than making the formic acid. KEMIRA is on board to sell the MVTG ERC produced Formic acid, not to make it. Customers, like Lafarge need to know there is a market and marketer for the formic acid, one that controls the market like KEMIRA.
Lafarge would own the first full scale plant (unless BASF or KEMIRA struck a joint venture deal), built at their cost.
The pilot plant for Lafarge will be owned by MVTG, an MVTG asset, and will be mobil and will be used at a US Coal fired power plant after the trials at Lafarge are complete.
Also, KEMIRA and BASF would have a huge interest in seeing the new MVTG Formic acid fuel cell dominate the world markets for fuel cells in 5-10 years, as it would increase demand for formic acid exponentially. So they would be fools not to have a foot in the door with MVTG (which they both have since the early days). BASF still has their foot in the door with MVTG, but KEMIRA is the current partner with MVTG.
Also, assuming formic acid can be produced at less cost with the MVTG ERC, than it can with the current reactors that use multiple energy consuming hog stages, using costly crude oil consuming steps, to make Formic acid, then both BASF and KEMIRA would want to save their sales and distribution niches and buy the new cheaper formic acid from coal fired power plants and cement kilns around the world using the MVTG ERC to make formic acid out of CO2. It is a complex model!!! And it needs all the players on board!!! That is one reason it has taken so long to get this far. Politics, international negotiations and the financial crisis in 2008 to 2011 slowed everything down to a crawl as well.
Mantra's patents are easily worth $250 million dollars IMHO. BTW, the rally from Dec 2011 to March 2013 was driven in part by news of issued patents (summer 2012 to summer 2013) and news of 3.3 million dollars in non dilutive financing that valued the subsidiary Mantra Energy at 12 million dollars market Cap in Feb 2012, using non public shares of the subsidiary. That was the spark that rallied MVTG to 14 cents, then later the issued patents rallied MVTG to 30 cents, especially the fuel cell patent.
The issued patents, being No longer just applied for or pending, but now 3 issued patents in 3 countries which makes them huge valuable assets. In fact many players that have applied for patents since the MVTG patents were issued (and applied for) have been denied patents because of the MVTG patents and prior art, meaning they must license the MVTG patents if they want to continue.... $$$$$s
MVTG is not a day traders stock, it is a buy and hold investment.
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