ADA-ES, Inc. (ADES) is looking to generate up to $6 million per year for each refined coal facility, and the company expects three facilities to be finalized by the end of summer with one more completed by the end of 2013, says Michael Durham, President and CEO of ADA-ES, Inc.
“The main goal is to get the remaining refined coal facilities up and running under long-term agreements. So to give you some metrics, we’re averaging about 3 million — each facility being about 3 million tons, and so each facility that we get up and running this year and next, our share nets out at a segment margin of about $1.70 per ton, so that each facility will start generating for us $5 million to $6 million a year of this segment income,” Durham said.
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Durham expects each facility to be a significant financial contributors to the company’s earnings. With three facilities projected to finalize by the end of summer and one more completed by the end of 2013, Durham is confident in how each will be a steady source of income in the future.
“We only have 10 million shares, so that becomes $0.50 to $0.60 per share for each one of these, and again, that ends up being a continuous source of margin income over the next eight years. So each one of these is very significant, and we recently announced that we are very close to having three of these finalized before the end of the summer and then at least one additional facility completed before the end of the year, and all of them will produce very significant and ongoing contributions to our earnings,” Durham said.