Ann: Algae.Tec Growth System Validated , page-7

It's not as expected, it's better!

I've just crunched some numbers and I have to say that if what is included in the latest announcement comes to fruition the nutraceutical market could prove to be a gold mine for the company.

The nutraceutical market is estimated to be worth $205 billion by 2017 and it has a CAGR of 6.3% so it's getting bigger all the time.

The announcement failed to clearly indicate whether the anticipated production rates given are a combined figure for both Chlorella and B-Carotene or whether they are for each nutraceutical product on a stand-alone basis.

In any case here is what I calculated from the information given:

2014 - 2000 tonnes of Chlorella @ wholesale prices of $16000 per tonne with capital costs in the vicinity of $7000 per tonne equals revenue of $32m and capex of $14m, giving a profit of $18m.

2014 - 2000 tonnes of B-Carotene @ wholesale prices of $90000 per tonne with the same capital costs of $7000 per tonne equals revenue of $180m and capex of $14m, giving a profit of $166m.

With production for the above nutraceuticals set to double from 2014 to 2015 from 2000 tonnes per annum to 4000 tonnes per annum doubling again to 8000 tonnes per annum by 2016 and then increasing to 10000 tonnes per annum by 2017, we're looking at some very impressive and substantial revenue and profit figures.

It was also stated in today's announcement that other nutraceutical products will follow.

When I originally invested in AEB I didn't do it because of the nutraceutical market.

Talk about getting some cream on the cake!