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Welcome cureboy
Yes ..
Exellent sp price ,, only because of the new factory being built ..
Happy Days
Hi all, new investor here (since last week) having been watching PHE for a while. Todays news sounds excellent, as does the technology, seems like one to buy and hold for a good few years. Can anyone fill me in on the patent side of the DMG technology, ie, do they have international patents in place/pending etc? Many thanks and GLA.
Thank you BT, DR A and Markrops.
BT in regards to the potential for building on by product, it makes me wonder if it could be used for future builds for DMG - at least foundation work etc.
@Blue & @Dr A, I think you may have misunderstood Notlongtimes question.
I believe he was asking do we think it might be financially viable to dig up old previously buried plastic to use as a feedstock for the DMG.
@Notforalongtime - I honestly couldn't give you a factually correct answer as I woukdn't know the true costings, but my hunch would be while possible, it would be a financial problem due to locating the buried plastic, the cost to dig it up then shipping it back here, all making it not worthwhile. In addition I would imagine it would also create a political problem when everyone finds out all that lovely recycling they have been doing for bin day, most of it got shipped abroad and stuck in the ground instead of recycled.
Not.........time. I think you are asking what the residue of the DMG plastic could be used for.
A word I heard recently was 'cement'?? No idea whether that is possible - it's just something I heard.
Markrops,
Thank you for your assesment. Out of interest, regarding the plastics previously disposed of; the burnt stuff there is not collecting back evidently. But landfill and the such, would you asses it could be retrieved for use in a DMG? Or would it not be cost effective enough? Just as an interest point. Regards.
Thank you Dave, glad it was appreciated.
Great reply markrops.
In regards to the 10% figure TP, I would agree that is very ambitious and unlikely at this point unless something big changes. I understand people will argue that it will include old plastic waste, however its not like its stored for years waiting on something to happen to it. The bulk of it gets burned or buried abroad.
I view it like this. Yes 5000 might be a hard push, but 500 units is surely achievable? That would only need 1% of worlds plastics. That would still give you by your figures a 250mil revenue and at PE of 15 (which is low for this industry) a Mcap of 3.75bil and a SP 93p, which personally I would be over the moon about. From now to 93p by 2030 would be massive returns.
It is worth noting Tim Yeo did say recently that the license fee which is 500k per unit at present may change once they get a better understanding of profits from each unit.
Make of that what you will, could be higher or lower.
Personally I think it may go lower.
Testpack3 I did the cig packet calculations a long while back on the 5000 units and posted it in the Facebook group... I estimated £12.50 a share using a 20x multiple. Some of your posts are quite well written but you let yourself down when constantly attacking people. No need for it.
I own a decent chunk of this company now and would definitely like to see some more progress take place asap. I do wish we had retained complete control of the first build but I’m trusting things will start to accelerate rapidly shortly. Peel need to pay their exclusivity payment and be tied into strict deadlines or PHE should start looking at other options sharpish. It seems we are too much at the mercy of Peel imo. I am trusting in the BOD to deliver soon.
Problem is we are struggling to get one unit up and running.
BTW 15% of tyre is stainless steel, so 20000 x 15% = 3 tpd x 340 = c1000tpa at £100 pt = £100K ( in the back pocket - nod nod wink wink)
According to figures I've seen on Google, every day, 100, 000 tyres are scrapped in UK alone., and that garages/tyre fitter,s are charged £2-3 each tyre collected because they have been banned from land-fill sites. May be a garage gal/guy on here can confirm or deny?
At an average weight of 9Kg per tyre, that's 900 tpd. At mo. the vast majority is shipped in containers to India, where it is shredded ( mainly by children), the steel recovered and sold, and the rubber subjected to pyrolysis to manufacture a cheap oil, carbon black and lots of pollutants.
A DMG plant solely for tyre recycling will have an income of 20000/9 X £2(?) x 340 ( days) = £1.5M pa. on being paid to remove the tyres. Then there is the sale or use of the H2/syngas. I would envisage a HFCV collection service for the tyres ( about 2200 pd). Additional to the capital cost would be a tyre shredder machine and associated steel recovery. Estimate £500K. Assume a wholesale selling price of gas of £2/Kg ( A HFCV car will run about 60 miles on Ikg of H2 so leaves plenty of profit for retailer. Retailing on site adds to profit), = 4000 X 340 = £1.36M pa. If capital cost is £10M, less than 4yr pay back.
Since you are all 'enthralled' with 'de management' I strongly suggest you see your Bank Managers ASAP.
Now that 'cig-packet' calculation is what the majority of informed investors would have done, the better informed might have taken this approach. 5000 units at 20tpd is 100,000tpd , at say 340 working days in the year is 34M tpa. . Estimates vary, but a decent guide is the Worlds production of plastic is about 350Mtpa. So Tim going for 10% of the Worlds supply is 'bold'. Some may argue that the total plastic production will increase yoy, I would argue the opposite, since both retailers and mfrs are keen to reduce the quantity. Possible an organic substitute for plastic which can be fed to the dog after use. You never know? In ant event, it's a huge market, and that is why I'm very disappointed with the 'slow' adaption of PHE technology. I have a crucially different model, albeit slight, I'll put forward, one in which I would personally invest in a DMG plant. tbc.
that no-one has done a 'cig packet' calculation on Tims 5000 DMG plants operational by 2030. I'll do it for you. At £1/2M each Licensing Fee, that's £2.5B pa. Since O/H are negligible in this model, I'll assume all of this is earnings. If I give it an average P/E of 15 ( there's no peer to compare), then we have a MC of £37.5B, ( one of the UK's biggest companies). With, say, 4B shares in issue, that is an sp of £9.37. This will please the herd, since they will all be millionaires. I'll be a multi millionaire. The BOD will be Billionaires. Now, don't get too excited, this will now happen, and I'll heap praise on the poster who tells me why not. ( And Tim talking BS is not the answer, although it's very good and observant).