Back of the envelope:Capacity with BPL: 150M l/yearMargin: ~20c...

Back of the envelope:

Capacity with BPL: 150M l/year
Margin: ~20c / l - maximum earnings $30M / year
P/E say 10
Shares on issue ~ 1.5B
Target at full production: 20c

When the contract kicks in we'll doing ~40 M l/year (not including BPL production) so I'm hoping we'll get some way towards a 5c target near term. Note that with the acquistion we have a number of bills to pay over the next few years which will weigh on the price.

The local marketplace for Biodiesel is friendlier now with measures in place to combat overseas dumping. I do however want to hear more positives from the government with regard to reducing our dependence on overseas oil.

I can't see any returns to the pre GFC prices for this one due to dilution. Never nice but sometimes necessary, three hurrahs to management for keeping the pulse during the walking dead years.

The main risk is the price of oil which has been swinging around far too much lately. Not even going to take a stab at where it will be year's end. Excise will start kicking in soon and head to 19c/l by 2015. This will put considerable pressure on margin though it appears that the biodiesel lobby is making some headway on having the government review the excise model.

DYOR.