Hi gogo, My take on the constant revenue for the plant goes as follows. I may be wrong because I havn't crossed checked the dates.
The initial $ 7 million was before Orica and CMC supplied the inputs to the plant.
Now Orica and CMC are alligned WITH us and plant capacity has since doubled. It is a case of sharing some of the profit with the input guys. Revenue has stayed the same for APG on higher volume. Orica and CMC now have an incentive to keep the plant operating at full capacity and APG only has to consider chemical aspects not supply logistics.
Those of you with long memories and association with APG will remember what happened when APG try to undercut Orica at Port Kembla steel mill for acid supply some 10 years ago. Orica simply dropped their acid prices 50% and froze APG out of the picture.
We have spent 10 years in the wilderness and it seems that APG has learnt the lesson.
APG Price at posting:
3.4¢ Sentiment: LT Buy Disclosure: Held
