Hi SteveThanks for those observations and your guestimates.I...

Hi Steve

Thanks for those observations and your guestimates.

I have a couple of comments in response as follows;

1) In relation to the original contract, I think that what I said was that a number of the ERBs that were earmarked for locations on the NSW north coast had been delivered by Spectur but had sat in SLS NSW storage for a year or more while installation sites were squared away with local councils and traditional owners.

2) I'm unable to confirm whether the original contract covered all 32 of the Spectur ERBs that have previously been sold to SLS NSW. That is a presumption of mine necessitated by the fact that the original contract was silent on the number of units that were involved. However, it's possible that the original contract covered a smaller number of units and that prior to that contract a few Spectur ERBs may have been deployed incrementally while SLS tested their efficacy. I have posed a question for Spectur on that matter but thus far have had no response.

3) In relation to your guestimates:
a) your unit monthly maintenance costs look like they may be in the ballpark but I'd love to know whether the figure is plucked from the air or based on some insight (professional or otherwise) that you might have;
b) using and quickly checking your guestimate figures I come up about $72,000 short of the full contract figure. However the shortfall increases when you consider that some of the 32 units that are presumed to be included in the original contract have been in place for quite a bit more than two years, with others having been in place for more than 18 months, and the last 11 having been installed in May and June of this year. This means that the maintenance et al provision in the current contract for the original 32 ERBs installed will only cover an average period of no more than 4 years, which would take the shortfall to around $149,000.
c) reallocating that $149,000 shortfall to the purchase cost of the 40 units that are the main focus of the current contract would bring the unit purchase cost to something over $10,500, which seems more realistic to me - although if your assumed maintenance et al cost of $200 per month per unit is an over guestimate then of course the implied capital cost of the 40 units would increase further.

Anyway, I appreciate your guestimate contribution. It helps get the grey matter moving.

If I hear how many units were covered in the original 12/2/21 contract, I will post.

zeno9