That is fine discussion but what is the actual unit cost? For example a company wants to procure 20,000 pallets on one P/O. What will they pay? Does any one know for real? There is no need to complicate it. Assume supply is available and a dedicated production run ready to start. Is not the unit cost, variable for volume perhaps, the so called "bottom line" for success or otherwise? Or is my thinking too miniscule.
I mention placings only because that's what they'll need if they don't get debt funding, or a combination of both, though for now I think they'll likely get debt funding (various things suggest to me recent confidence that funding won't be a problem, whatever form it comes anyway). Though the situation is not as good as expected a year ago, the $45m gets them closer to where they should have been at this point in the bank balance, and Walsh and co will obviously have had many discussions regarding debt funding not just in October that we know of, not even just this past year but for many years. It would be a new level of screw up if they suddenly find now that the lenders find potential pallet losses a dealbreaker. The plan was always that the IPO cash would run down and they would go into a net debt position, but as we know everything's behind schedule over the past 2 years. I guess any placings price (if it happens) is ultimately a supply and demand thing so if they can attract enough interest making a strong case for the prospects for the business post funding it wouldn't be that bad (Woodford for one remains very bullish in his fund updates that mention rm2). The situation in various other respects will have improved since the last one in that they have more pallets, hopefully progress with contracts etc.
...landfill (that was the last word before it cut me off). Also I misremembered, meant to say 35 trips not 50 for my placings only model. And as mentioned rm2 are targeting higher trip frequency closed loop situations, certainly more than 4 trips per year. I'll take back my comment wondering what No.8's interests are as his disclosure got cut off at the end and I shouldn't have said it regardless.
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