- Joined
- 30 June 2008
- Posts
- 15,594
- Reactions
- 7,472
Re: EDE - Eden Energy
I thought it was a very (purposefully) vague but extravagant announcement. But it is also very exciting.
As I read it a very substantial part of the infrastructure development cost are being covered by the various grants. As well there will be rebates on future local taxes. The "$67m development" is for the first phase which will be made in four stages over 4-6 years. So perhaps $17m a stage ? Less the various grants to pay for land, water, power roads etc.
Projected costs are always creative. From memory the costs of the pilot reactor were relatively modest. A few years of trial and use should have helped reduce costs further.
From a sale point of view the concept of having an additional 8 development phases probably similar to the first phase of 50m gallons looks awesome. The current price for the additive is $25 a gallon. That suggest a gross income of $1.25 billion in 4-6 years. And then add 8 more phases ? It will be interesting to see what sort of analysis is offered in the near future.
I also go back to the current pilot plant production.
Surely the sale of sale 1- 2.4m gallons of Edencrete at $25 a gallon is no small figure particularly when the development cost of the new site is around $17 m a year less local subsidies. I think shareholders should be updated on the progress of the current expansion and sales of the product. It's proven. There are a number of users who have tried and tested it. It should be selling and making a decent dollar.
On the other side of the ledger I wonder how strong the intellectual rights are on the process ? And can it be easily replicated ? Perhaps the Solomon Bros would be wise to create an attractive big picture story and flick it on to an industrial behemoth who knows their way in the business.
I thought it was a very (purposefully) vague but extravagant announcement. But it is also very exciting.
As I read it a very substantial part of the infrastructure development cost are being covered by the various grants. As well there will be rebates on future local taxes. The "$67m development" is for the first phase which will be made in four stages over 4-6 years. So perhaps $17m a stage ? Less the various grants to pay for land, water, power roads etc.
Projected costs are always creative. From memory the costs of the pilot reactor were relatively modest. A few years of trial and use should have helped reduce costs further.
From a sale point of view the concept of having an additional 8 development phases probably similar to the first phase of 50m gallons looks awesome. The current price for the additive is $25 a gallon. That suggest a gross income of $1.25 billion in 4-6 years. And then add 8 more phases ? It will be interesting to see what sort of analysis is offered in the near future.
I also go back to the current pilot plant production.
Surely the sale of sale 1- 2.4m gallons of Edencrete at $25 a gallon is no small figure particularly when the development cost of the new site is around $17 m a year less local subsidies. I think shareholders should be updated on the progress of the current expansion and sales of the product. It's proven. There are a number of users who have tried and tested it. It should be selling and making a decent dollar.
On the other side of the ledger I wonder how strong the intellectual rights are on the process ? And can it be easily replicated ? Perhaps the Solomon Bros would be wise to create an attractive big picture story and flick it on to an industrial behemoth who knows their way in the business.