So, according to the PPY HY report: ?All available veneer...

So, according to the PPY HY report: ?All available veneer produced is currently sold to an Egyptian purchaser to satisfy an initial order of 10,000 sq m of trimmed veneer?.?

1000 sq m was dispatched in Q2 and ?a second tranche of veneer was dispatched to Egypt to fulfil the order mentioned under Product Development above?.

So by deduction, ALL of two months+ production was less than 9000 sq m of veneer. If a banana trunk yields say 5 sq m of veneer then this equates to less than 1800 trunks in total. (I?m guessing how much veneer comes from each ?billet?, but I hope it?s more than 5 sq m, otherwise things are worse than even I think!) At the last stated production rate (in last years HY report) of 197 billets (trunks) per hour- plus the claimed 60% efficiency increase giving 315 billets per hour- there has been the equivalent of 6 hours continuous production to make this 9000 sq m. What have they been DOING for the rest of the two months????

Oh dear, either the machine is horribly slow or there is something missing in the reporting.

The HY shows sales of NIL (revenue is pretty much all bank interest), no inventory value, and trade receivables of just 99k (Egypt?), which seems to confirm that nobody wants to buy any veneer. Despite Tout Bois, Five Star Finishers, Transform Australia, Jaguar cars and all the other people supposedly trialling the product nobody is buying. Note from the 2010 annual report: ?Our European distributor, Tout Bois, has recently reaffirmed their demand for large quantities of our veneer to be supplied to certain specifications.? Even the Egyptian sale is merely to trial low value ?flooring?- is this connected with the Flexura flooring company from Belgium that was mentioned from early 2010?.

380k cash plus recent cap raising of 1.4m means, with a cash burn of around a million dollars per quarter net, there will need to be another capital raising by May, unless the Egyptian white knight rides in. I can?t see a new raising being as high as 12c so more price pressure?.

Tell me I?m wrong! I so wanted this concept to succeed.