May. 14 at 4:34 PM
$LOCL Agreement with Cargill really going to do wonders for the cash flow statement going forward. No cash payments on interest for 2 years really hammers home the adj ebitda to cash flow proxy (excluding balance sheet movements of course). Freed up over 200m of funding through Cargill agreement w/lowered interest expense plus the preferred. At the previous 16m shares outstanding that was = to
$12.75 per share of capital freed up, even over
$7 for the current 28m potential full share count (cost of capital aside of course on the preferred).
Looking pretty good, plus that project Thor 20% yield improvement, run rate that’s nearly money straight to gross profit, fixed costs stay fixed and variable should be limited to energy & a hint more labor but not to much since it doesn’t seem to be a major process overhaul. Basic economics, will really juice up margins and operating cash flows
