Begging your pardon but your math is incorrect. I
Post# of 2009
Posted On: 10/03/2014 2:24:16 PM
Begging your pardon but your math is incorrect.
If the deal is for 8,450,000 metric tons this is the correct math.
There are 7.1475121 barrels of oil in (1) metric ton
If you have 8,450,000 metric tons you need to divide that number by 7.1475121 barrels per ton (I BELIEVE THIS IS CORRECT AND I WAS WRONG BUT MAYBE I CONFUSED THE JV003 WITH THE JV002?)
8,450,000/7.1475121= 1,182,229.55 barrels of oil.
If the deal is for 12 months that is 98,519.12 barrels per month.
At $100/barrel that is $9,851,912.92/ month, or roughly $118,222,944/year. (THIS IS WHERE YOUR MATH IS OFF,SEE I WAS USING $16 DOLLAR A BARREL PROFIT CUZ MARKET PRICE WAS $116 BARREL AND I AM SURE 10% IS NOT ENOUGH MARGIN FOR A JV SPLIT IMO THEY COULD BUY AT 90 BARREL AND SELL AT 110BARREL WHO KNOWS)
At 10% profit that is $11,822,294.40 (I SEE 15-20% PROFIT MORE LIKELY WHICH THEN WOULD BE SPLIT BY 50%)
50% of that is $5,911,147.2
That is the correct math and much more realistic expectations. Still, 98k barrels per month is still a lot of oil to move and will require $10m a month in financing to do it.
Without a financier for each delivery where is the money going to come from? The CEO stated that 20% monthly commitment has been achieved but that's not going to get it done.
I don't know if 10% margins are the right number. You used 16% in your math. Someone will need to be willing to leverage $118m a year to make $6-9m a year if the split is 50:50 (IMO THE BACKER IS PROVIDING FULL FUNDING AND XUN (JERRY)CLOSING DEALS AND THEN THEY SPLIT THE PROFITS SO NO SKIN OFF XUNS BACK GET IT ALL $$$$$$$$$$$$$$$)
THIS IS ONLY 1 DEAL IN THIS EXAMPLE WE HAVE BEEN GIFTED A GLIMPSE OF 2 RIGHT NOW WITH HOW MANY MORE BEHIND?SO LIKE I SAID HUGE $$$$$$$$$$$$ AND ONCE FIRST DEAL POPS COMPANY HAS REVS AND ALL PROFITS PRETTY MUCH AMAZING MARGINS HERE!!!
Read More: http://investorshangout.com/post/view?id=2097...z3F6ge2Ymu
If the deal is for 8,450,000 metric tons this is the correct math.
There are 7.1475121 barrels of oil in (1) metric ton
If you have 8,450,000 metric tons you need to divide that number by 7.1475121 barrels per ton (I BELIEVE THIS IS CORRECT AND I WAS WRONG BUT MAYBE I CONFUSED THE JV003 WITH THE JV002?)
8,450,000/7.1475121= 1,182,229.55 barrels of oil.
If the deal is for 12 months that is 98,519.12 barrels per month.
At $100/barrel that is $9,851,912.92/ month, or roughly $118,222,944/year. (THIS IS WHERE YOUR MATH IS OFF,SEE I WAS USING $16 DOLLAR A BARREL PROFIT CUZ MARKET PRICE WAS $116 BARREL AND I AM SURE 10% IS NOT ENOUGH MARGIN FOR A JV SPLIT IMO THEY COULD BUY AT 90 BARREL AND SELL AT 110BARREL WHO KNOWS)
At 10% profit that is $11,822,294.40 (I SEE 15-20% PROFIT MORE LIKELY WHICH THEN WOULD BE SPLIT BY 50%)
50% of that is $5,911,147.2
That is the correct math and much more realistic expectations. Still, 98k barrels per month is still a lot of oil to move and will require $10m a month in financing to do it.
Without a financier for each delivery where is the money going to come from? The CEO stated that 20% monthly commitment has been achieved but that's not going to get it done.
I don't know if 10% margins are the right number. You used 16% in your math. Someone will need to be willing to leverage $118m a year to make $6-9m a year if the split is 50:50 (IMO THE BACKER IS PROVIDING FULL FUNDING AND XUN (JERRY)CLOSING DEALS AND THEN THEY SPLIT THE PROFITS SO NO SKIN OFF XUNS BACK GET IT ALL $$$$$$$$$$$$$$$)
THIS IS ONLY 1 DEAL IN THIS EXAMPLE WE HAVE BEEN GIFTED A GLIMPSE OF 2 RIGHT NOW WITH HOW MANY MORE BEHIND?SO LIKE I SAID HUGE $$$$$$$$$$$$ AND ONCE FIRST DEAL POPS COMPANY HAS REVS AND ALL PROFITS PRETTY MUCH AMAZING MARGINS HERE!!!
Read More: http://investorshangout.com/post/view?id=2097...z3F6ge2Ymu
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