EdenCrete Profitability Forecast

I thought it might be timely to start a new thread so as to get some thoughts from you all regarding the possible profitability of EdenCrete. Please note: I have also posted this on the EDE forum.

I would like to firstly make a couple of points about the cost of producing EdenCrete’s CNT’s and then move onto the anticipated profitability of EdenCrete, the cash flow implications and the overall production and financing situation going forward as I see it.

1. As you all know the feedstock for EdenCrete’s CNT’s is Natural Gas. The price of Natural Gas is currently very low which means that EdenCrete is currently likely to be even more profitable. See following link:

https://www.quandl.com/collections/markets/natural-gas

1. Over 90 % of EdenCrete consists of water which is an extremely low cost commodity. In comparison to the price of Natural Gas, which is subject to major price variations, the price of water is very stable. This price stability will be very advantageous to EdenCrete, and on a long term basis. See the following link for the cost of water in Augusta:

http://www.augustaga.gov/775/Water-Rates-Fees


On January 25th this year GS made the following statement:

“Eden Innovations has placed the purchase order for the design and building of the new reactors in Colorado that will enable the EdenCreteTM production to be increased within the next 8-9 months to approximately 2.4 million gallons of EdenCreteTM p.a.”

Based on GS’s statement, Colorado should have an annual production capacity of 2.4 million gallons p.a. as from October this year. At an official selling price of US$25 per gallon this will mean that the turnover in year 1 will be US$60 million. With a profit margin of 10 % (conservative) this would mean a profit of US$6 million. However, bearing in mind points 1 and 2, I expect a profit margin of 20% or a profit of US$12 million. Provided EdenCrete produces a profit somewhere between 10% and 20%, this should put EdenCrete on very solid financial footing in little more than a year. This is an amazing accomplishment in itself and extremely rare for a start up on a tight budget. This resultant cash flow should allow EdenCrete to easily finance the further expansion of Colorado and entice Banks and other lenders to finance the establishment and expansion of the plant at Augusta.

I would greatly appreciate your comments whether my calculations and my scenario make sense.

Thanks and cheers!