I don't remember hearing that before perse... but Tyler seemed to go out of his way to state that SRN average selling prices are expected to be "north of $5000/MT." I'm sure the cost to manufacture is going to be higher too, but this is definitely nice to hear. Remember target gross margins were 60%
Actually that is basically the number they have stated since the initial filing with costs of around 2500 per ton, but it was nice to hear it restated today.
I found it interesting they are going to build the Roquette 50,000 ton plant in the US, but I guess it makes sense as the market for the product is larger, and they already have FDA approval. Since the JV will own that plant I wonder if they will be able to use idle capacity at that plant for other oils if the demand for the SRN stuff doesn't use all the capacity.
I just dont see that happening, ever since we made that push to the 9.30 area the stocks been weak and the earnings call has done nothing to ignite the move again. The 8.70 level which was an important level to cross, doesnt seem to matter anymore.
also made reference to Phase 3 facility like it was a pretty done deal. Phase 3 facility is expected to do $250 million in revenue BY ITSELF (as in, not including phase 1 & 2 facilities). His words, not mine. Nice to hear, given that it was pretty much a free deal all around. Actually in the same presentation Painter referred to original SRN agreement as solazyme selling half of the business to them for $20 million couple years back.