To: madmax123 who wrote (38521 ) 9/4/2015 3:26:56 PM From: zen_lunatic420 4 RecommendationsRecommended By ayeyou forbrydelsen kidl madmax123
Read Replies (1) | Respond to of 49402 EUO/SIPCA market perspective: GFI's three current clients amount to 98,630 bbl/day of world oil consumption. In rank order of the world's largest oil consumers they are #103 (Tanzenia), #108 (Albania), and #137 (Uganda). Panama consumes more oil than all three of GFI's current clients combined and ranks #77 with 98,890 bbl/day of oil consumption. Given that Mexico ranks #11 with 2,133,000 bbl/day, it could be said that a contract with any top 11 country could grow GFI's sales by 20-fold or more. SIPCA currently has offices in 8 of those 11 countries. (2) Likewise the Netherlands ranks #20 with consumption of 1,010,000 bbl/day, so it could be said that a contract with any top 20 consumption country could grow GFI's sales by at least 10-fold. SIPCA currently has offices in 7 of those 9 additional countries. Succinctly, it could be said that there are 20 countries that could grow GFI's business by 10-fold, SIPCA has offices in 15 of those countries. What does all this mean for the potential royalty flow to EUO? If one of the top 20 countries could grow GFI's business by 10-fold or more, that means: 10*(H1 annualized total GFI revenue from latest financials = 6, 100, 000) = new total GFI revenue if they signed a top 10 contract, or $61,000,000 in chemical marker sales potential for a top 20 country. Then if we conservatively double that value to represent the total value to the new GFI under SIPCA, who would also provide the logistics for a fuel marking program, the total contract value for a top 20 country could be $122,000,000 or more. Then the royalty due EUO is 5%, so $122,000,000 *(5% royalty) = $6,100,000 for just one contract with the smallest (#20) of the top 20 producers...ANNUALLY. Proportionally, a contract with one of the top 11 oil consumers could be double that....or $12,000,000 in ANNUAL royalties for just one of the top 11 countries! I am heavily weighted in this stock and do believe SIPCA has potential to bring GFI more than one of these game changing contracts with some top 20 oil consuming countries in the wold. References: (1) List of Countries by Oil Consumpion: en.wikipedia.org (2) SIPCA location: sicpa.com This post was copied from my post on Stockhouse last night.....and expanded upon here thanks to a PM conversation with madmax123 about what this could mean to a potential royalty stream for GFI.