Agreed it does look like a big deal to PPK and worthy of an...

Agreed it does look like a big deal to PPK and worthy of an announcement to the market.

Working off $5 per mask (the lowest average price for a box of 40) and current production capacity of 5 million masks per months gives annual revenue of $300 million and PPK's share at 47.62% of $143 million. PPK should have roughly 3 months revenue from masks in the current half year or about $70 million.

This revenue number looks surprisingly big to me, but on the other hand, it looks like an essential product for people in the medical industry and many other people would like it too. The revenue calculation assumes that the facility is producing at capacity, i.e. that utilisation is not less than 100%, but there is no real reason to believe it is not operating at capacity. Furthermore, PPK says that it is looking to add capacity to meet demand (implying demand of greater than 5 million masks per month).

It is not clear what the profit margins would be, but that too should be reasonable, if not good. So, given that PPK paid very roughly $5 million for its share of the business, this looks like a very good return indeed.

Grateful to know if anyone has a different take on the revenue implications of this business. I must admit the numbers are surprisingly good, but if true, PPK will have done very well from its original investment.