I prefer to think in terms of Model 600s because we know the numbers on that.
Cost about $700,000, sell for $1.8 million plus $150K for setup.
The Evans/RecOil JV will ramp up very slowly as you say, but let's pretend they eventually process all 210 million gallons, plus what ever comes in on any available deadhead tankers.
600 GPH X 24 HR/DAY X 330 DAYS/YR = 4,752,000 gallons per year per Model 600 unit.
210,000,000 / 4,752,000 = 44 Model 600s
Just selling those units could net about 44 million.
The royalty is paid on some kind of sliding scale based on the diesel product's profit margin, but we could say it's 4 cents, why not? Then it depends on the conversion efficiency of the current process. I'll bet they are making splendid progress on conversion efficiency, my opinion only.
My personal IE is way off scale. NASDAQ NMS, here we come! (Eventually)
Charles
P. S. Of course the whole reason for these kinds of deals is to rapidly build capital to acquire oil collection companies throughout the rest of the country and to build GRNO's own units. That is where the real profit is. |
