Another brilliant piece of journalism. CMQ state design work has...

Another brilliant piece of journalism. CMQ state design work has been undertaken for a further API facility which could be scaled from 50t to 400t. They also say the more capacity the less cost to build per tonne, so what does the journalist indicate? The maximum capacity and the maximum cost per tonne, yes he says up to, but its clearly misleading.

Where as it will be closer to 400 x $400,000 for the 400t plant (160mill), at which stage they will have a 450t capacity including the 50t plant if im not mistaken? Not the 400t they journalist claims.

Now 450 is required for this market cap they say. Lets see what 50t does and since all they really need pay for is the raw materials which will be bugger all (10% tops) and plant operation there will be a massive profit margin. They are already manned to produce and we can see operating costs of 2.8mill/ quarter, lets call it 9mill a year. As they expand, material costs and operating cost per tonne will also drop.

So we have 50 x $1mill = $50,000,000 in sales, of which 9 mill goes to operating costs and 5 mill to raw materials. Leaves them $36mill by my rough calculations, cant see they would need to pay much tax and R & D is almost non existent for a few years. Is 30-36 mill enough along with current assests to get a loan for 160-200mill for a 400t plant? So 450t is required for this market cap, I would love to see these mysterious ‘analysts’ figures.