This is obviously where the big value add is, IMO From the offtake ann 6th Aug, DL said its Prineville processing plant can produce Isolate & Extracts Isolates & Full spectrum distillate was listed by PanXchange Sept market report as having a wholesale values of $3525 USD & $3100 USD/Kg Now let's say that on a "very bad deal day" that James negotiated a toll deal with a major processor ( there's lots of them in Colarado etc)on a 50/50 basis (the norm should be 75% to CLI, IMO but we are being pessimistic here for the purpose of the exercise)
Money heading for the bank already, IMO: -$3 mil from trimmed flower JV -$15.4 mil from the DL offtake Sub total $18.4 mil AUD. Now let's consider James' "bad" 50/50 toll deal for the remainder of CBD biomass (say 600K lbs)we have: - 600K X 12%(CBD) X 90% (processing efficiency) X 50% ( The bad deal) X $1360 USD#(average price per lb) =$44 mil AUD (This would give a small plant like DL which cost less than $2 mil USD to build an amazing $30 mil USD revenue for 60 days production Perhaps we should have built our own plant!) So by those assumptions we have:$18.4mil + $44 mil AUD =....$62.4 mil AUD total harvest revenue This is close on Green Fund's estimate.
CLI Price at posting:
4.7¢ Sentiment: Buy Disclosure: Held
