Well OK. We'll have to take it on faith that what
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Well OK. We'll have to take it on faith that what you are reporting is true. If true it is very good news.
We have ample evidence that the quality of the fuel JBII produces is excellent. Given the right type and quantity of feedstock this company will be hugely successful. It all comes down to business logistics.
This is the most important paragraph in the report:
"The cost of sales during the third quarter 2012 was higher than in the prior periods primarily due to the processing of a significant amount of a particular feedstock that we were able to secure in large volumes and allowed us to maximize our processor up-time and revenues primarily in September 2012. This was a crucial short-term strategy to provide us with key data as we continue to enhance our production roll-out strategies. Our longer term strategy regarding this feedstock is to identify sources and channels at a significantly lower cost than paid during the quarter, in order to not only maximize revenues and processor up-time, but also to maximize our gross profit."
Processing RKT plastic should address part of that. We still do not know how much that source of plastic will actually cost. We need similar sources of plastic identified and contracted.
The Madison County, NY, story could be a big piece of that puzzle. If sources of municipal waste, comprised of agricultural and other business waste that is already segregated from other waste going to the landfills, can be identified and procured it will be an excellent model for municipalities across the country.
It will be an excellent model for the national rollout we have all been anticipating.