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2.5¢ vivid technology limited

The thing that struck me was the modelling suggesting that the...

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herbalist

6,201 Posts.

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22/06/18

08:42

Post #: 33874113
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Originally posted by verce ↑

I think it's good buying at these levels and evidently other people thought so today as well.

In the immediate term - one steel plant, according to the recent announcement, will produce ~400,000 tons of methanol annually.

In the previous graphic, we can get a rough calculation for the value proposition this represents for just one plant.

View attachment 1158705

So 321,888 tons/year of methanol should represent $140m revenue per year for the plant using the technology - of which GER (aka VIV) can expect a measly $1.4 million per year in royalties.

$1.4 million per year for just one plant's output of methanol from the technology is pretty good! And it scales upwards.

Maybe in 2019 when initial progress rolls in we won't need to worry about capital raisings anymore - and the lighting side of the business can just keep growing organically financed by the CO2 royalties.

Of course, if a carbon tax is ever introduced, the economics get even better here in Australia.

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The thing that struck me was the modelling suggesting that the effect on the profitability of the steel plant through the incorporation of the NCFtech was a circa 48% increase. So huge end user benefits.

VIV Price at posting: 4.7¢ Sentiment: Buy Disclosure: Held
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1 Great analysis

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