Essentially, the company says that it can turn the $4-per-kilogram silicon metal produced at its Becancour operation into more than $60-per-kilogram solar-grade silicon at a fraction of the cost of other producers.
"Timminco has developed a breakthrough innovation," Mr. Schimmelbusch said. "We have developed a new process to produce solar-grade silicon that is significantly cheaper. We are very proud of this achievement."
Mr. Schimmelbusch says that the company will vigorously protect its proprietary process and has already applied for a patent.
According to Timminco's leader, the company has a number of competitive advantages including its patent-pending low-cost proprietary process, ready access to hydroelectric power, constant supply of raw materials and easy access to transportation.
"Combined, these make Timminco a force to be reckoned with in the solar energy industry," Mr. Schimmelbusch proclaimed.
Mr. Schimmelbusch went on to say that customers and a leading analyst have validated the company's process. That may be something of a stretch, particularly when it comes to customers validating Timminco's black-box project.
Timminco reportedly has received positive feedback about its upgraded metallurgical silicon from customers, but early assessments of relatively small shipments of the company's product should not necessarily be construed as a validation of the secret proprietary process.
"We received an extremely positive endorsement of our manufacturing process and production capabilities from PHOTON Consulting, the leading analyst for the solar energy industry," Mr. Schimmelbusch said.
It is not clear just how PHOTON attained its ranking as the leading analyst for the solar energy industry, but Timminco's paid-for "operational review report," delivered by solar booster Michael Rogol, was indeed extremely positive. In fact, outside of the pages of a paid tout sheet, it might be difficult to find more extremely positive cheerleading.
As previously noted by Stockwatch, Mr. Rogol's so-called operational review report was extremely long on bullish, perhaps even fantastic, financial projections and remarkably short on any details about the company's ballyhooed breakthrough process to produce solar-grade silicon.
Mr. Schimmelbusch worked some of Mr. Rogol's financial ruminations into his May 29 presentation, taking care, of course, to give full credit to the compensated consultant. After all, notwithstanding the fact that Mr. Rogol's calculations were based on information provided by Timminco, it might be unseemly, if not downright foolish, for the company to take ownership of such lofty projections.
According to Mr. Rogol's "realistic" assessment, Timminco could produce 20,000 metric tons of solar-grade silicon worth $1.3-billion and realize an operating profit of $1-billion in 2010.
It is not clear whether Mr. Rogol gave any thought to the notion of gouging when forecasting a rather amazing operating margin of 80 per cent.
After touching briefly on Timminco's plans to spruce up its magnesium business for divestiture and the company's hope that it will eventually be able to unload its interest in an aluminium wheels operation, Mr. Schimmelbusch wrapped up the dog-and-pony show with some final words about the upgraded metallurgical silicon project.
"Based on the progress we have made in respect to production levels, the number of customer agreements and the purity levels, I believe we are well on our way," Mr. Schimmelbusch said before inviting questions from shareholders.
Big player
The first question was posed by an investor who wanted to know something about Timminco's majority shareholder, AMG Advanced Metallurgical Group N.V., which controls approximately 52.6 million shares representing more than 50 per cent of the company's outstanding stock.
"Can you tell me about this large shareholder and what would happen if they wanted to sell?" the investor asked.
"They don't," Mr. Schimmelbusch replied, chuckling.
The investor wanted that response fleshed out a bit and Mr. Schimmelbusch obliged, beginning by explaining that AMG is a public company trading on the Euronext exchange in Amsterdam. As a matter of possible interest, he provided the company's trading symbol.
"AMG is a global specialty metals and specialty metals technology and engineering company," Mr. Schimmelbusch continued, noting that the company went public last July with "a very successful public offering."
It was indeed a successful public offering, both for AMG, headed by Mr. Schimmelbusch, and its founder and largest shareholder, Safeguard International Fund L.P., also headed by Mr. Schimmelbusch.
