The costs and prices are attained from information
presented in the appropriate chapters
within the feasibility report. In assessing the
accuracy of the estimated costs, we look at
three broad possible results: base case, best
case, and worst case cost. The case price sensitivity
is calculated using quotes received from
potential suppliers, Internet research, intuitive
calculations, and various assumptions. These
unit cost results were applied to three different
Array lengths (50, 100, and 200 kilometers);
each length with its own determined field efficiency
(63%, 100%, and 200% relative to the
100 km value of 45%).
The scope of this report does not cover multiple
periods or valuations. It focuses on the initial
capital outlay and the annual costs of platform
operation. Prospective future costs and valuations
will be examined in detail during the next
phase, when additional information regarding
the masses of plastic to be captured over
the years and sales prices of relevant plastic
quality will be gathered to assist in those calculations.
From there we will be able to predict
more accurately the potential cash flows from
sales and any return on investment.
Capital and operating expenditures do not include
amounts for insurance, harbour costs,
transport, or installation. In calculating the
costs, certain assumptions are made by using
exchange rates and approximate costs of fuel.
Hedging against currency exchange, inflation,
and fuel price fluctuations, as well as accounting
for professional service fees, will be considered
in more detail during the coming phases.