Wednesday, September 22, 2010

Estimated Profit speculates on JBII potential


JBI Claims

their P2O processor can process 40,000 barrels of fuel per year, which breaks down to 109 barrels per day. They claim that their cost to produce fuel is less than $10/barrel, and that they can sell the fuel for around WTI prices.

Each machine costs $160,000-$200,000 to build.

The JBI Price Matrix

http://dl.dropbox.com/u/3474887/JBII%20Price%20Matrix.xls

The JBI Price Matrix takes these assumptions and shows what is POSSIBLE(it's just a road map, not necessarily what will happen) with each processor installed. You can change most variables to make it more conservative or aggressive. The second tab labeled P2O #'s can be changed as well, and will update on the first tab.

There is high potential that the matrix, in the default settings, could be conservative(save the $80 crude vs. current prices).

1) The blending site allows for a huge markup in price if they can sell direct to gas stations. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=53580852

2) The processor has the potential to process multiples of 109 barrels/day. Many believe the company may be giving conservative numbers, that was based on batch operations, before moving to continuous operation.

3) If inferior P2O companies are trying to sell their processors for $5 million, what could JBI sell theirs for? The potential to make millions off each processor also exist.

Here is a very conservative approach as an example:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=52851510

http://www.youtube.com/watch?v=1945C8-6yEQ

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