It's interesting to read your speculation. One aspect that you haven't covered is that there will be more volume over plenty of fixed costs. The cost of the facility, even via a sale & lease back, will be fixed and significant. The labour cost of core staff will be fixed. There will be other fixed costs. A lot of the extra margin will go straight to the bottom line because of the fixed v variable mix. Therefore, it's difficult to use recent cost behaviour as a model when volume increases unless you have a detailed understanding of the cost structure. I am thinking you might have underestimated this volume effect.
MCE Price at posting:
33.0¢ Sentiment: Buy Disclosure: Held
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