director spends $86,337 on market , page-19

analyst reports are interesting

http://carbonconscious.com.au/site/files/57583/%282009-11%20Alto%29%20CCF.pdf

and

http://www.carbonconscious.com.au/files/19/files/Alto%20CCF%20research%20report.pdf

They changed the figures for the value of carbon credits without changing the value they create. Previously 20-30 now 20-25 but still 200-450 per year.

Per hectare basis
$800 gross profit per hectare planted in the first year (design and plantation fees, excludes
land cost)
$15 gross profit per hectare per year for 15 years (management fee, includes land cost)

So they aren't expensing land acquistion costs on purchase but amortising it over the useful life. Not sure what percentage they amortise a year.

Business models seems to be geared towards an upfront fee with a small ongoing profit until year 15 which is highly sensitive to increases in the price of agricultural land. THis previously went up when plantation land was picked up for MIS projects and I imagine this would be the case for CCF although would take longer as they are using marginal farm land.

So kicker comes from carbon credits generated year 15+ as these would accrue to CCF.

Given gross profit per hectare is supposed to be around $800 (excluding land costs) vs average land purchase costs of $875, cashflow would be marginal (there is 2m of management expenses not yet accounted for increasing with the size of plantings), it may be positive as some land purchase costs would be included in the continuing op-ex.