GRB 8.16% 5.3¢ gage roads brewing co limited

If they increase production by 20 x , ie 2000% to 1.2million...

  1. 2,614 Posts.
    If they increase production by 20 x , ie 2000% to 1.2million cases its fair to assume that with the economies of scale they will actually lower CODB.

    Thus its fair to assume once they are into full production and all CAPEX has been allocated they should be earning 20x as much. Current profit is $1.8m, so in the crudest calculation we could say in around 12-18 months profit should be around $36million.

    Right now its a $30m market cap so its pretty clear to see the growth potential.

    New production lines are finished in april, so ramped up production should be included in Q2 earnings.

    The next few months offer massive growth potential.

    The primary, risks involve technical and engeneering, teething problems and recruitment as i see it. Funding is taken care of and sales are assured.
 
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