long term everything still ticking along, SP smashed unfortunately. lots of people probably buying on back of PET hype and bailing out. there was a lot of volume go through in high 50s and 60s so the rise was different to the last one. i am in the 60s so was enjoying getting close to break even. new contract with chinese province will sort that.
some info i got back from Adam:
- continue to manufacture all MABR modules in our Changzhou facility then ship modules to the provincial assembly plants to be integrated into the container. cost of assembly capacity is very minimal
-Q4 profitabiliy is not contingent on San Quintin resuming so the $40m loan is not essential to be sorted. documents for Generate will be submitted late Q3 or early Q4
-increasing ownership has no impact to revenue, but lowers the minority interest expense and thereby increases net income. FLC now get 94% of distributable cash flow instead of 51%
- one manufacturing line has the potential to produce a maximum of 7500 modules per year with full 3 shift operations.
this last point is very interesting to me. in Aus one aspiral unit goes for about $150k (i know cause i tried to get one on my project). for ease of numbers and being conservative and allowing a bulk discount rate applied let's say $100k per unit. that is a potential of $750m AUD at full capacity. that is pretty serious. even at half capacity that is $350m AUD per year. the fact we are going 3 full shifts is very interesting and gives an idea of the potential scale of the contracts we are discussing with the provinces. while seeing the SP dive was disappointing, always keep your eye on the prize. i thank sellers for the opportunity to top up
*please correct my calulations if they are off
Ann: Fluence June 2019 Quarterly Report Business Update, page-99
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