Renesola - Chinese Solar Panel/Silicon Recycling

We need to be clear about the fact that Lemmings recent figures are too high by a factor of 4.

Q4 is due to produce 18MW.

18MW / 2.4W per wafer = 7.5m wafers.

7.5m wafers x 40 cents saving per wafer due to in house slicing = $3m extra Gross profit when all wire saws are functional i.e. Q1.

There were 5 wire saws installed in Q3 and 19 being installed in Q4. Let's say then that SOLA sees approx. half of the full benefit of the full 24 wire saws in Q4, the uplift in GP would be $1.5m.

Since Q3 profit was $7.923m off 13MW, pro rata Q4 should be $11m before the benefit from the wire saws minus some in house wire sawing costs, so likely to be around $12.3m, giving $26.9m net profit for the Full Year or 13.7p. (Have to say I am assuming the eps will be worked out on the full 100m shares but that isn't the weighted average for the year as the bulk of the shares have only been in existence since, I think, May or some time? clarification on how this might affect the no. of shares used for 06 would be helpful?)

Q1 07 won't be a lot more as SOLA will be running at full capacity as the new furnaces won't be online til Q2 and Chinese New Year Feb 18th will no doubt be a holiday for the workers. Q1 will benefit from the full $3m lift in GP however from wire saws.

After that, of course, it all kicks off :¬)

Russ