YTD SYNM has burned about $5 million, most of it in a single quarter. I'm showing Q4 at or near breakeven with the current margins and reduced production for Oct and Nov, but strong production in Dec. That Should have them entering 2013 with $17 million on hand, or $5 million burn for the year. Here are the cash numbers:
Date SYNM Cash Burn
6/30/2011 $29.30 $-
9/30/2011 $28.40 $0.90
12/31/2011 $22.60 $5.80
3/31/2012 $21.50 $1.10
6/30/2012 $18.30 $3.20
9/30/2012 $17.60 $0.70
Everyone here should realize that Bumpywon is a paid pumper!! His job is to keep you interested in SYNM and provide false positive news.
The past two quarters SYNM has recognized about $9.3 million in deferred revenue from expired agreements. This has put their operating profit number into the GREEN. This company is NOT generating cash.They have consumed over $3 million in the last year and only generated cash from operations once in the past 5 years.
Bumpy ... the cash burn isn't always linear with SYNM. A cash call from DF will cause it to drop significantly in one shot. There appear to be some concerns that this could happen, given the negative margins recently. Any thoughts there?
JKL has an excellent point..."things" happen......regularly.......somehow i dont think TSN is in any mood to support this venture further...time for them to produce....and yes, that was ANOTHER prerecorded announcement...
That is why I have been saying that it is good that SYNM has not been producing. These have been very negative times for BioDiesel. Margins however have not been negative for SYNM for some time. Depending on if you use 2012 or 2013 RINs, they could be coming back on line at just the right time. Yes cash burn isn't linear, but look at the max and mins during a very difficult time. Even if you repeat the worst quarters, you still have plenty of cash. Production has been picking up, they have the new processing equipment and margins are picking up. Facts are two or three months in a row should give DF a pretty nice war chest of cash. Even if they shut down due to margins, SYNM would only be losing about $2.5 million a quarter in cash. Bottom line, production looks to be coming on line at just the right time, and after a solid production run they should have plenty of cash. Also, if the Tax Credit gets passed, the cash burn issue should become mute.