APG 0.00% 0.2¢ austpac resources nl

second announcement - shareholder update, page-2

  1. 1,858 Posts.
    Looking more and more like a real plant!

    One thing that I notice is that design choices have been made that incur a higher capital cost, but lead to lower operating cost and therefore greater profit.

    eg they don't have to use recuperators (the stove pictures). The cost extra to include in the design. However, they also lead to a return due to lower fuel consumption.

    They don't have to use a coal gasifier. Natural gas equipment would be cheaper. However, coal is a cheaper fuel source and will lead to higher profit.

    They don't have to install a CO2 stripper. But I think they may be able to sell the CO2. Plus it serves as a demo for what can be done.

    These things all serve to push up the capital requirement, but increases s/h return. Don't know if that's something that causes a problem to Kronos, but you could argue that management is working in the interests of return to all s/h's, not just thinking about Kronos.
 
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