The power plant is a reality now and the dollars started rolling in yesterday.........Focus now shifts to power alcohol.Thumbs up for Evans.

God gives,mugikuyu takes.

@Obi,

Sorry for not responding on time..............All the 3 products are cogenerated.Briefly,in a cane factory,optimal production mix for every 1 tonne of sugar cane should give you 100 kg of sugar,100 to150 units of power (KWh) and 10 litres of power alcohol (ethanol).Of the 100-150 power units produced,15% is usually reserved for consumption by the factory and the rest exported to grid..........Money is in both power and ethanol since the initial capital for this plants is small and the plants themselves have minimal maintenance cost......MSC crushes 350 tonnes of cane per hour which accounts for 70% of the kenyan sugar industry capacity per hour.


God gives,mugikuyu takes.

@ Njung'e

Mumias are Simply passionate about this Idea but its Contribution to their Revenue Downline is Currently Inconsiquential...at that pace give them 10 more years to realize any Material Profit.. hoping that by that time they wont have gone Belly-Up!

Sample This;

You say these pple Churn 350 Tones of Cane per Hr..so if 1Ton of Cane makes 1Ltr of Chang'aa,it means thery produce 3500 Litres (350 * 10 ) of Alcohol per Hr and so in 24 hrs (assumming 24hrs No-Stop Operation),it means 24hrs*3500ltrs=84,000 ltrs perday & Night. So,monthly production is 84,000ltrs * 30days=2,520,000 litrs per month.Revenue Per month is 2,520,000Ltrs *40 bob/Ltr (assumed)=shs,100,800,000

Annual Revenue (assuming shutdown 3months) 100,800,000*9months=907,000,000shs in Revenue.

Once the above is Taxed at 30% (900m-270m=670m ) EPS contribution is less than .40 cts

So the big Question is,is this Urgument Holding any water??

and is so,do you think this ADDED Profit gives yu the courage to buy Mumias


M'c Kende Siafu !

@Eddie

Good trial.... Now,do your calculation again and include the kilowatts,possible benefits from economies of scale. That could get us closer to a better EPS. Add the possible favourable increase in market perception of the company's diversification - and lets the estimated market share price...

Some deals are like glass. Sometimes it's better to leave them broken than try to hurt yourself putting it back together.

...plus reduced expenses...read no more elec costs. @eddie,thats quite a lot of cash man,why the skepticism? I just didnt get ua point.

Truest proverb: Mwenda pole hajikwai