Replies to post #254813 on Plastic2Oil Inc (PTOI)

[Golfgod]

I agree with you

[arvitar]

That's like saying all JBI needs to do is stop being a money-losing scam and start doing something real that earns a profit.


With Bordynuik having sold his shares, and now just in it for the $275,000.00/year + BONUSES...

and with JBI out of cash and likely to take desperate measures for financing...


well, nobody will do well. Except Bordynuik, of course.

That is a certainty.





SPLAT

[the big guy]

What JBI needs to do is to make a lot more fuel and $$. I put together a spreadsheet that performs a profitability (ROI) calculation over a 3-year time period. It is applicable to a potential customer planning to buy a processor from JBI.

If you assume an up-front capital cost of $2 Million and a Cost of Capital of 4%, JBI would have to make on average $170k/ month from P2O production in order to break even. That is, to repay the 2 million over 3 years. To achieve an ROI of 20%, they have to do $205k/ month in production. They are nowhere near that right now. last quarter they did a measly $15k.

The 20% figure is based on my experience in Capital Projects. Money is tight in companies, and there are lots of competing projects and "entities" (oops) looking for funding...

These machines are just test pieces that do not achvee anywhere near the production required to make P2O a viable business.