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Kevin Quon

 
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  • Solazyme: Why This Green Company Looked To The Oil Fields [View article]
    Run Rickey,

    I actually never compared encapso with orange oil as their current uses possibly address different markets within oil field services. Szym has an algal solvent that it has compared with d limonene and that link is found in the article (sorry hard to copy and paste on phone). You'll need to translate Portuguese though. Szym hasn't talked much about its d limonene mimetic but it's given a few mentions from time to time in conferences.

    As for well comparisons, most have just been compared against similar wells in the same area by the same operator. It's unknown if those wells were using lubricants but it's difficult to believe they werent.

    Kevin
    Jul 14 03:59 PM | 3 Likes Like |Link to Comment
  • Solazyme: Why This Green Company Looked To The Oil Fields [View article]
    Haha. Nice thought.
    Jul 14 03:01 PM | 1 Like Like |Link to Comment
  • Why Solazyme Expects To Make An Impact In Food Applications [View article]
    No. I agree with what Doewap said below. I would also add that it appears like they're stemming the reaction with their statements. What will most likely happen next (based on their initial statements) is that they will go on the attack w/ evidence-based support from the intelligencia + green groups.
    Jul 11 06:36 PM | Likes Like |Link to Comment
  • Why Solazyme Expects To Make An Impact In Food Applications [View article]
    Its all about the properties of the algal flour. Lucrative or not, it's got the properties that are hot right now and will continue to be for the foreseeable future. The target margins suggest that it will indeed be a very lucrative product line. Time will tell, but I remain confident of the product line's success.

    IFT2014 suggests that algal flour was a hot item. Roquette is definitely making a push for relevance, and we all know they basically stole our tech and are currently selling the same thing (but hey, leave it to the lawyers to come to a resolution over that one... in the mean time no harm in two separate companies selling a good product w/ limited supply):

    http://bit.ly/1iFV1kt

    And just to preempt a thought, SZYM's IP position looks much stronger in terms of the ingredients (Roquette's IP is more about mfg process). Also the JV agreement is pretty clear that IP is SZYM's upon dissolution. Most likely outcome IMO is that Roquette pays a fee for sales made and/or maybe will continue to sell or will be forced to stop. Not a lawyer, but that's my guess.
    Jul 9 10:42 PM | 3 Likes Like |Link to Comment
  • Why Solazyme Expects To Make An Impact In Food Applications [View article]
    User_1681, that's a list of strategic advisors, but not a list of consultants. He's contracted for up to three years (http://bit.ly/1mLaIYN) :

    "In connection with Dr. Dillon’s resignation, the Board approved the entry by the Company into a Transition Agreement and Release (“Transition Agreement”), a Consulting Agreement (“Consulting Agreement”) and a Separation and Release Agreement (“Separation and Release Agreement”) with Dr. Dillon (collectively, the “Dillon Agreements”). Under the Separation and Release Agreement, Dr. Dillon will receive a lump sum payment in the amount of $312,000, payable upon effectiveness of a release, and COBRA reimbursement for up to two years. Under the Consulting Agreement, Dr. Dillon will perform consulting services for the Company, including intellectual property support and such other services as may be mutually agreed, for up to three years, for a cash fee of $48,000 per year in years one and two, and no cash fee in year three. Dr. Dillon’s equity awards will continue to vest for the duration of the Consulting Agreement, provided he continues to provide consulting services to the Company."
    Jul 9 10:39 PM | 2 Likes Like |Link to Comment
  • Why Solazyme Expects To Make An Impact In Food Applications [View article]
    Geosteam,

    I'm glad you're taking the time to dive deeper into the research. You're really hitting key points that few understand or are willing to learn. It is a truly powerful position to be in to have the advantage of being one of the most efficient (if not the leader) in oil creation. More so as one capable of rewriting the rules of how oil is made. This company will take time. But it's done immeasurably well all things considered. It's unfortunate Wall Street really doesn't understand the story yet.

    -Kevin

    p.s. Harrison Dillon was the patent lawyer, not Wolfson. Technically, HD was co-CEO at one point in time though, so your statements not far off. But just thought I'd mention that. HD's talent is still being utilized to some degree as he's working as a consultant for SZYM now, especially in the IP field.
    Jul 9 01:16 AM | 3 Likes Like |Link to Comment
  • Why Solazyme Expects To Make An Impact In Food Applications [View article]
    To be more direct: They use & recycle CO2, but probably not in the manner that you imagine. The company isn't trying to turn steel mills into feedstock generators. (Although indirectly this could be true given that there are companies now trying turning such gasses into sugars.)

    -------------------
    It's my personal belief that the industry is going to struggle with gas as well. Just as the novelty of "free" sunlight wore off when companies realized that only the top layer of the pond gets the sun, I believe there'll be similar issue w/ the carbon density of gas. Lets be honest: it's more productive to drink a glass of water (sugar) than get a mouthful through raindrops (gas). Just my two cents on the issue. There's only been one company that I've seen which is attempting to make a dense energy product (ie. oils) from gas and even they are in the VERY early phases of development: Kiverdi (http://bit.ly/1oggD4L) (probably where szym was back in 2006)

    -Kevin
    Jul 4 03:04 AM | Likes Like |Link to Comment
  • Why Solazyme Expects To Make An Impact In Food Applications [View article]
    Nothing is a given yet. They usually let us know 2 weeks in advance of when it is. Presumably it's around that time period.
    Jul 4 02:55 AM | 1 Like Like |Link to Comment
  • Why Solazyme Expects To Make An Impact In Food Applications [View article]
    Jands,

    It's metric tons. So approximately 2200 lb. As for the cost of production, consider this: It takes approximately 3 MT of sugar to produce 1 MT of oil.

    Sugar costs also account for more than half of the total production cost (per words from Wolfson on my last visit - http://bit.ly/NLwWu8). At the same time, using commodity raw sugar costs for your calculations wouldn't be truly representative. Sugar contracts include additional costs that an onsite location wouldn't incur (ie transportation). Additionally, SZYM has already hedged the risk of sugar costs to its partners in exchange for some of the upside gain.

    More importantly there is the question of sugar quality. It hasn't been disclosed what kind of sugars are now being used, but it's understood that SZYM has a feedstock flexible system and can run on sugar juice & waste molasses as well. Patents show that the process even works better on cellulosic sugar sources (unfortunately cellulosic sugars are still ramping to be a realistic feedstock) & on waste glycerol.

    Regardless, the cost of production will vary from product to product as do the average sales prices. For example it costs >$1 mil/MT to create Alguronic acid, but it also sells for about $4 mil/ MT. On the other hand, biofuels are expected to be produced at <$1k/MT while selling for a mere $1500/MT. The key point here is that margins are what matter in the end, and right now the company believes they're margin estimates remain accurate.

    Target Gross Margin estimates: (http://bit.ly/1ogeki6)
    Fuels/Chemicals >30%,
    Nutrition >40%,
    Oil Field Services >50%,
    Skincare/PersonalCare >60%

    The only field's margins that we can verify to date is skin care/personal care due to the success of Algenist. In itself, I believe this shows the accuracy of the company's estimates. SZYM is now profitable in this division & has been supporting gross margins between 60-70% for at least 2 years. It's helped slow down the cash burn... but that cash burn wont reverse until large scale capacity ramps up for the oils and other bioproducts. New plants take 12-18 months to hit nameplate capacity.

    Either way, hope you look into it further. I always enjoy helping those who have an interest.

    -Kevin
    Jul 4 02:51 AM | 1 Like Like |Link to Comment
  • Why Solazyme Expects To Make An Impact In Food Applications [View article]
    RWRATTI,

    Here's a good look at SZYM's process by some students: http://bit.ly/1pzQjb1

    "Gas" is the new focus item for industrial biotech, so expect more of these kinds of companies. Unfortunately they're having issues of how clean the gas needs to be (which is why ethanol plants are better than steel plants), of getting the costs down (waste gas isn't as free as one might imagine), & getting enough yield out of it. There are still huge problems with scaling up & finding a higher valued end product as well for most of these companies (gas only has so much carbon in it). SZYM's decision to go the oil route rather than something like ethanol was very well thought out, and it's paying off now.

    Kevin
    Jun 27 08:41 PM | 2 Likes Like |Link to Comment
  • Why Solazyme Expects To Make An Impact In Food Applications [View article]
    Mungbean,

    I think you might be confusing the nutrients of the algal flour with the algal oil. Two separate products.

    Kevin
    Jun 24 06:59 PM | 1 Like Like |Link to Comment
  • Why Solazyme Expects To Make An Impact In Food Applications [View article]
    Kian Wee Tian,

    Thank you, and by all means feel free to do so. As for the heterotrophic process, it's what gives the company an advantage really. For starters, heterotrophic algae has a much higher lipid yield over autotrophic algae. The approach also gives more control over both the process and the end product's design. Even as the development of low-cost sugars are becoming a reality through new methodologies (ie. cyanobacteria, supercritical water, cellulosic sources, etc.)

    Kevin
    Jun 24 09:07 AM | Likes Like |Link to Comment
  • Why Solazyme Expects To Make An Impact In Food Applications [View article]
    tondi01,

    Much appreciated. Thank you for following and I wish you the best in all your endeavors.

    Kevin
    Jun 23 07:17 PM | 1 Like Like |Link to Comment
  • Why Solazyme Expects To Make An Impact In Food Applications [View article]
    Seth,

    I do. I've already tried it on a visit to the company's HQ and it's pretty good as it hardly differs from the control at all. Most cases you can fool yourself as to which is which. This isn't typical green algae with a fishy taste. It's naturally bland due to the mfg process. In the case of ice cream I even liked it better (than the haagen Dazs control). It didnt ice as much and tasted slightly creamier. But I'm just an opinion. You'll have to wait and find out when it hits the store. Taste is in the mouth of the beholder?

    Kevin
    Jun 23 04:00 PM | 5 Likes Like |Link to Comment
  • Why Solazyme Expects To Make An Impact In Food Applications [View article]
    According to a previous presentation during the offering, there are at least 10 potential partners in the works for additional mfg. capacity. I believe szym will be highly focused on clinton and moema for the coming year though. Yet i wouldn't rule out an announcement on a new upstream partner over the next year however.
    Jun 23 03:34 PM | 3 Likes Like |Link to Comment
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