SAS 0.00% 1.6¢ sky and space company ltd

Fast Forward 2 years......., page-146

  1. 4,177 Posts.
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    Same logic that Tesla used, when it publicly said the model 3 would cost 25,000 USD, then they released it for more than twice that cost, and even now it is still not $25,000 to purchase.

    A ballpark price is exactly that - a ballpark price just like in Tesla's case.

    For my research - the competition, and the other launch services available now..... I don't see why SAS should be paying $40,000 per kg, if they can get the same service substantially cheaper, and why they would continue to use the same contractor if somehow they have managed to lock themselves in - when they stated they would select based on the best price, success rate and other metrics... Virgin Orbit does not seem to be the logical choice at your quoted figure of 10 million USD for 16 sats, but we don't know what has been agreed and so to say it IS 10 million fact - is false - like saying the model 3 IS 25,000 USD, particularly the first model 3's which were no-where near the released price.

    Agreed it will cost money to launch the rest ..... here is what I would imagine they could look to do - any of those options would be viable.
    Bank finance - because they have already mentioned this being done.
    Customers - They could use revenue in the simple form of upfront payment from 1 or a number of MOU clients, probably once the 1st batch is up and demonstrating performance, again with preferential or beneficial client terms as a result
    Contractual deals - They could get one of the larger customers to invest in launch for service arrangement like a reverse draw down mortgage where the customer gets free access until the launch costs are used / and / or with further benefits.
    Contractual finance - The could get one of the larger customers to provide finance for the launch ( Just like KDR had done with SQM ) in exchange for preferable contractual terms or exclusivity.

    Remember - they are aiming to provide a world first with their sats, so although on face value it's expensive, it is utter chump change compared to what the current sat voice services have spent to get their aged constellations up..... if SAS are delayed it's not as if the list of MOU's are going to be happy paying a magnitude of the price for existing sat phones.... they would have already purchased bandwidth if that was the case.



    Last edited by dachopper: 09/03/19
 
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