I don't think they're quite in the same business as IPL at the moment as SOI's patented process is for manufacture of a soil substitute rather than a fertilizer manufacture? Having said that, they list applications of Nutrimix (on their website) as
I'm not a scientist so don't know whether the product would be suitable for growing crops or not. Do you have any detail on that?
I can see a massive upside for SOI via sales to their target territories and drought stricken regions. The pricing on their existing licensing deal with China is for $30m to service 400,000 hectares which is $75 / hectare. Does anyone know what the equivalent for IPL fertilizer is?
I also note that the nutrient life of the product is 3 years so we can expect if the product is proven commerically via the initial chinese biodiesel project that the company will get return custom (ie close enough to a back-end revenue stream model).
Lastly, they should be able to maintain a very low operating cost base given they are basically a holding company that owns the IP and a marketing and distribution subsidiary working via regional agency agreements. Also note the CPH connection in the middle east.
Will be a very interesting one to watch. Particulary as they disclose new contracts and meeting existing contract milestones.
SOI Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
