Posted On: 12/24/2012 12:16:58 PM
Post# of 43065
Will we be able to get a sense of how well they are achieving that $10 per barrell number? We will need to take out some of those one time costs.
I'm not sure what you mean by taking out the da to day operations. Your list that follows is the day to day operations. I think it is proper to take out some part of the manufacturing costs. Certainly the R&D costs. None of the business operations costs.
Forgetting about N.F. because it has too many variables the question is how long will it take for a new facility to contribute to the corporate bottom line. Since the company wants to retain ownership of the processors and take a good percentage of fuel revenues, the company will need to absorb all build out costs. How long will it take a new facility to generate enough revenues for the company to realize break even on the facility?
It will vary for each facility unless the company will have some way of guaranteeing that no facility will be built until it can demonstrate that it has the feedstock stream it will require to run continuously.
Hopefully that's the plan. Hopefully each facility in its second or third year of operation is generating the gravy for the corporate bottom line.
Everybody should be prepared for a decade slog up that stairway to heaven.
I'm not sure what you mean by taking out the da to day operations. Your list that follows is the day to day operations. I think it is proper to take out some part of the manufacturing costs. Certainly the R&D costs. None of the business operations costs.
Forgetting about N.F. because it has too many variables the question is how long will it take for a new facility to contribute to the corporate bottom line. Since the company wants to retain ownership of the processors and take a good percentage of fuel revenues, the company will need to absorb all build out costs. How long will it take a new facility to generate enough revenues for the company to realize break even on the facility?
It will vary for each facility unless the company will have some way of guaranteeing that no facility will be built until it can demonstrate that it has the feedstock stream it will require to run continuously.
Hopefully that's the plan. Hopefully each facility in its second or third year of operation is generating the gravy for the corporate bottom line.
Everybody should be prepared for a decade slog up that stairway to heaven.
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techisbest
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