Happy to be corrected if im wrong. CR Preso Jan 2024. Pg15....

Happy to be corrected if im wrong. CR Preso Jan 2024. Pg15. Bottom.

*Key Assumptions: Revenue based on US$75/m2 supply and install, US$2/block cost, US$4 lay cost and 12.5 blocks per m2

It clearly states what makes up the Revenue projection. Cost per block US$2.

Lay Cost (cost for the customer, fee for us) is US$4 per lay. So, US$4 is the lay fee.

12.5 Blocks / msq -> 12.5 * US$6 therefore = US $75 / msq.

The FAT is a given. FAT is 285 Blocks / hr. Indoors. They achieved 326 B/hr last October. Outdoors.
It is only a matter of when they decide to ANN FAT. And i dont believe they can kept this secret because FAT is a milestone in the Option Contract.

The SAT is well within reach 285 B/hr. Outdoors. Almost a given.

I just think the SP pullback is a reaction to the CR and reflection of the Conditional nature of the orders. And of course the day traders.

First 3 Hadrians must achieve 30% gross margin, 75% Utilisation. For 6 months.
Before the next 3 are ordered. Only the latest 3 judge on its past 2 months 30% GM / 50% UT. The rest as above 30 / 75.

I dont know what exactly defines the utilisation. But obviously there must be at least healthy demand for the Hadrian.
If the demand is that high, of course they will just keep ordering.

But while the Demo is most definitely to pass. No one can be absolutely sure how successful the utilisation will be.
Besides the capabilities of the Hadrians, how many unknown / unforeseen external factors are there?

Interestingly, the CR preso is based on 60% Utlization. While the contract stipulates 75%.
The feeling is that even just at 60%, the revenue generated is already impressive. Given per Hadrian is $2mio (AUD?).
So the gross profit per machine is already at least USD$1.2 mio. (1 machine generates US$3.2mio). Before deducting overheads / variable costs.

Long story short. Ultimately the contract puts Hadrian to test with its Demand. Which the Pivacs have been talking for years. Blade meets blade.

With due respect, the rest of the details, maintenance costs, sweep to pay loan facilities, margin with Liebherr, etc - its too obscure to drill into them now. We need to observe what is the take up for Waas. I think thats all that matters.