I would expect margins on incremental oil sales will be a lot higher than 20%....probably closer to 80% as harvesting and processing costs for oil are $207/l and marketing & sales ~5% of proceeds.
It is excellent news that mgt have found a distribution partner in another industry & geography. However I would argue Mr Market has already assumed a $US4,500/kg price for all oil (= $US 167k/t for heartwood) sales over the coming 5 years and so there will be no change to earnings expectations. So I agree with your perspective that this announcement is not 'an epic game changer'.
This is a good HotCopper board; lots of different insights and views, with respectful conversations.
TFC Price at posting:
$1.52 Sentiment: Hold Disclosure: Held
