Certainly some big numbers being thrown about @thehunterBased on...

Certainly some big numbers being thrown about @thehunter

Based on last quarters actual revenue of $7.7m a 100tj plant would be $77m quarterly and $308m annually.
For easy maths sake, last quarters production, staff and admin OPEX was $8mil. So a negative cashflow scenario still for the Kincora plant. The plant metrics will improve as production is ramped up as a large component of those OPEX costs relating to staffing admin is pretty fixed. However to ramp up production obviously requires more feed being the costly part of this business. $4.85m of expenditure for last quarter for little improvement in plant production since year end Dec 18 is certainly a disappointment.

Perfect world we can get the plant enough feed soon enough without raisng any more capital/dilutionary events for shareholders to bring it up to 20TJ production where the customer receipts, opex and field development costs should largely balance themselves out. As for a return to shareholders... that is a tough one. Once Kincora is producing 30tj more consistently as they plan, then maybe it is possible however there will no doubt be a heavy capex requirement in the next 5 years that will wipe out any chance of that I think...

We have no sales issues with the product, its just a difficult balance of lean cashflows and heavy expenditure for now and easily the next 12-24 so a 100tj plant seems a long way away at the moment!!

Im interested to hear others thoughts as always, perhaps I am a little too pessimistic in this opinion?