Member Info for 13thmonkey

Mucky, in that respect every company ever is a ponzi scheme, do you think that Ford weren't paying suppliers with the money from new orders in the early days?

Do you know what are we comparing this against? Or is that thread buried in the mists of time.

Anyone know if there is a cause?

Hope I'm wasn't teaching people to suck eggs. However First calcs suggest that for a 500MWh machine, cycled once a day only, funded at 8% interest, leveraging a 0.05 difference in unit costs could cause a machine costing 31M, pay the interest and capital over 5 years and break even. So what does it really cost, and are those other figures reasonable? Gut feel the interest is high, and differential power cost is low. Maybe 5% and 0.08 difference is better. Would you lend on that? I would

So has anyone done the sums on the differential in power costs and what the machine costs per unit of power? Given this the profit from a machine can be calculated, payback understood and the earnings over the interest and capital payments understood. Or work it backwards to understand what the maximum cost of a machine per MWh is to remain profitable, and understand if they are likely to be able to make it for that. Those are the sums in the business case that the bank will want from the Germans.

The only exposure to redt is whilst fulfilling the order, between stage payments, if the company blow what the bank provides. There's no marketing, no sales from the Germans, nothing where spend can go out of control or fail to deliver. It's a machine to arbitrage power over time, the machine works, the differential in power costs throughout the day will increase, so they can make money. The bank introduction provided by redt will know both of these facts. So the question is do they have somewhere to put it and agreement to connect to the grid?

Joined purely to reply to this. 3 parties, bank, redt, and the Germans. The bank looks at the business case from the Germans and thinks it'll cover the servicing of the debt, but they want to secure it on the plant. The Germans borrow the money in stages The Germans pay redt the funds. Redt provide the plant. Redt has made it's profit from the sale the goods are owned by the Germans with the bank having the right to take the plant if they don't service the debt. The Germans make money buying and selling power. If they then service the debt everyone is happy If they then fail to service the debt the bank takes ownership of the plant and sells it on. Redt loses nothing at this point. The only point redt loses is in maintenance costs if the bank can't sell it. It's not complex.