If the 9% .11 doesn’t make sense, neither does the rest of the Breakdown pie chart. Processor #2 is the only one they have a current handle on. #1 is on and off, and #3 is still being constructed.
“ Was he perhaps revealing Q1 margins? ” I don’t think so. Remember the issues with wet plastic? I interpret the pie chart to be current, using 9% - .11 for P2O Processors & Plant Overhead as stated in the CC and on the Breakdown Chart. Calculate for the other percentages making for COGS of $1.22 in Q2, if nothing goes wrong.
My contest numbers for Q2: $1.26 - $2.74.
Food for thought:
What will be a reasonable COGS number for adding HTF to the mixture in the future? Note that used HTF can be sold to a disposal company for .10-.17/gal according to this article:
http://www.multitherm.com/technical_articles_...ystem.html
“ When your system is larger than 1,000 gallons you can contact a disposal company to come in with a tanker to remove the fluid from your system and pay you $.10 to $.17 per gallon. Used heat transfer fluid is burned in many incinerators because of its high BTU value and the fact that it burns clean. ”
It may be that adding used HTF is cheaper than plastic, and makes "higher yields, at a faster rate". See slide 29 in the 8-K.
HTF is another feedstock source too…less dependency on any particular kind and source of feedstock. I think there won't be any weather related storage issues either.
