The Company is pleased to report that in its third fiscal quarter through August 12, 2013, it produced approximately 82,618 gallons of fuel, with approximately 64,542 (78.12%) gallons produced as in-spec diesel fuel and approximately 18,075 (21.88%) gallons produced as naphtha.
“I’m extremely pleased with the consistency in which we’ve been able to produce fuel to start the third quarter”, stated JBI Chief of Technology, John Bordynuik. “We are still running processor three conservatively and are encouraged that the residue removal is working as expected. Residue has been removed continuously during the machine’s startup run, which today will be on its 23rd consecutive day. ” He continued, “We are looking forward to getting to the point where we can begin to test significantly higher feed rates on processor three.”
This is what we were told on August 30th:
As previously planned, the Company cooled and cycled processor number three, it’s recently commissioned Plastic2Oil® processor, for approximately six days to inspect the machine internally, perform routine safety checks, and make minor adjustments to the machine’s flue gas piping. Processor number three’s initial production run lasted a total of 30 days, until the machine was cooled down intentionally.“The speed in which we were able to cycle processor number three was very encouraging. We believe the technology behind our third processor is absolutely world-class. With our previously disclosed spending cuts and production momentum, we continue to progress with an eye on moving this company closer to a cash flow positive state,” stated Richard Heddle, JBI’s Chief Executive Officer.
JBI Chief of Technology, John Bordynuik stated, “Processor number three, as expected, had very mild amounts of coking throughout the pre-melt and the residue removal system has been operating as we had hoped. The resultant mild coking in the pre-melt was expected, due to our flue gas piping needing to be slightly adjusted. The reactor and residue kilns were both in excellent condition during our visual inspection. In addition, the adjustments that were made to the machine’s flue gas piping have helped the machine achieve ideal heat profiling, which is precisely what we were striving for during this period of downtime. Our next step for processor number three is to work on maximizing feed rates.”
Note that we were not told how much plastic vs. how much HTF was processed.
I have no doubt that the processor can run continuously processing mostly HTF and some crayola products without a significant amount of petcoke produced. There was the one image of petcoke coming out at a decent rate, but then we got another image of it trickling out.
We just do not have enough real data to make any kind of informed decision about how well the processor is working. The market understands this.
Until we get an SEC filing with real data that clearly demonstrates how well processor 3 can process plastic, there will be no significant movement. I hope that this filing happens and that it demonstrates good results.
But even then, until we know that they can process a decent range of plastics, that the plastic can be procured, and that the costs of obtaining feedstock are less than the revenue that can be generated, we might not see any lasting movement in the share price.
The business model must be clearly defined and proven.
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