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Gold/Mining/Energy : Nuvo Research Inc -- Ignore unavailable to you. Want to Upgrade?

To: Mike Jubian who wrote (6933)	3/13/2001 8:32:45 PM
From: Montana Wildhack	Respond to of 14101

Mike, Sometimes I feel like one of Rebecca's legionaires in a B movie. An enjoyable B movie though. Plant capacity discussed last summer was estimated by Peter at 300,000 units a month on one shift with one line running normal hours and without the upgrades he mentioned they could make to the line itself to improve production. Expansion as used may refer to the second assembly line that can be added at Varennes without moving a brick - or more likely it refers to some of the upgrades mentioned by Peter (Hi Peter. We all hope you're well). Revenue per unit could range from about $20 from the UK to $14 from europe or $15 from the US, up to $45 for Canada - all assuming 45 wholesale selling price local funds. Taking a $15 Cdn average thats $4.5 million a month. Fabrication Dimethaid can also simply add a shift to the current line - depending on production bottlenecks. Thats what I think this may be about. If the batch creation is a bottleneck to the second shift, that stage of production or some other bottlenecks may be being beefed up. Just for the h*ll of it no doubt <giggle>. Bottom line is this one plant should easily produce between 100 to 200 million dollars Cdn worth at wholesale prices (to the pharmacy). At these production levels I estimate fully loaded costs of goods sold at $3 Cdn per bottle. Thats around $22 million for costs a year to produce around 7 million units or so at the 100 million revenue range. I posted two years ago that once we got approvals, my big concern was production capability. I like what I've heard but a second plant is definitely in the cards not too far off. Wolf