On the face of it i think it looks like a beauty. Another plant to be built producing 11,000 ton a year of ACP produced to our specifications (presumably) at cost price. All with "no capital contribution" from CG1. This plant is supposed to be fully operational by 2Q FY22. I interpret that as by the end of this year. Even at the lower price supplied at $2500 per ton that's over 27 million in revenue a year. What's not to like about that.
But what share of that goes to CG1. I wish they elaborated on the " the two companies split the margin from sales" part. Is that a 50/50 split?
CG1 is doing sales and customer relations. Is this just different words for using our contacts or would Kentucky Coal Processing/new company have them already if they are building a plant?
Also does anyone here know what the per ton cost of producing ACP is?
This announcement might explain the recent price hike. What are the negatives in this or what have i misinterpreted?
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On the face of it i think it looks like a beauty. Another plant...
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