what is esi?, page-42

Sp3,

in addition to your breakdown...


When i spoke to one particular key employee at ECT, i was told that they look like paying between $6 and $15 for their brown coal. The remaining cost is for production into Coldry pellets and they hope to sell the pellets on a realistic market discount to blackcoal - of somewhere between 50% and 25% cheaper than black coal that is.

Now that discussion was 3yrs ago and then again about 6moths ago. The only thing different now is actual commodity costs. Hopefully, we can maintain a marginal discount to A grade coal.
But the idea is to get the brown coal (Lignite grade coal) for under $10 - seeing as lignite doesnt sell for much anyway it will be a money earner for companies like this new Indonesian one, who will use it to upgrade their sub-standard and relatively useless brown coal into Coldry pellets.

Hypothetically, this latest announcment reveals to us another company revenue stream that i had not considered on the surface...That is, selling our companies technology rights to mining/resource companies who wish to transform their lignite into more lucrative Coldry pellets.
This latest announcment indicates the companies willingness to adopt a simple bread and butter model as one income stream.
The business model is similar to competing patent/IP holders within the pharmacuetical/biomedicals industry - for anyone who would like to see the reliability of a model based on IP rights.

Rumplestiltskins whench worked straw into gold.
Lignite into Coldry...like straw into gold for this Indonesian company, who will be the first it seems, to build their own little Coldry Processing station (i'll call it for now) as a tool to improve ultimate returns on their own reserve appraisals.

Oh...The Lignite Magicians Wand...so many storys and metaphors spring to mind...
What a versatile scenario.

Congratulations on paving the discussion regarding our planned Coldry plant number 2 Fellowes111 ;-)

Cheers,

Lautrec