GP Vivienda Venture Revenue Estimate

Hi Everyone. I’m trying to estimate the potential contract size / revenue that FBR can earn with this recent Mexican venture and would like your assistance in sanity checking. Will be happy for anyone to improve the numbers as I’m not an expert in construction. Please forgive me if the numbers are in fairyland.

The following are numbers I’ve sourced around and assumed:

- Average cost to build a house in Mexico ranges from 3,000 pesos (ultra basic) to 10,000 pesos (luxury) per square meter. This is approximately $190 to $635 AUD.

- Average area of a Mexican house = 1400 square ft, which is approximately 130 square meters.

- Average house in Mexico costs 800,000 pesos, which is approximately $50,000 AUD.

- Assume that GP Vivienda’s builds are for the average Mexican family (6,000 to 7,000 pesos per sqm).

- Looking at the nice drone footage of Mexico, there are about 40 houses per block. So if it’s an average build size of 130sqm per house, we’re looking at 5200sqm per block.

- The Hadrian demonstrated it can build the walls of 2 average Mexican houses in 1 day. If we have a normal 5 day working week (so operators can have their weekends off), the Hadrian can complete 10 builds per week. So for 1 block of 40 houses, the Hadrian can complete all the walls in a 1 month.

- FBR is going to charge for Wall as a Service (WaaS) only. The rest of the costs for the house eg. slab, roof, finishings are done by another vendor.

How much FBR is going to charge for WaaS is the uncertainty as there are premiums that ought to be factored in, which includes speediness of the builds, waste management, safety and accuracy. All these will cut costs to your normal manual build. So with all the numbers above… we can make a dart board of roughly where we sit in terms of revenue (using only 1x Hadrian) for this Mexican adventure (all dependent on the WaaS rate $ / sqm). Please let me know where you think the WaaS rate should sit. Thanks.