Navy,I honestly don't think NFL should consider taking full...

Navy,

I honestly don't think NFL should consider taking full ownership of the Darwin Plant unless they have lots of spare money floating around they don't know what to do with.

In the short term they still need to raise some money to complete the Singapore Plant. I would assume that they will be able to raise this money reasonably easy because of the Glycerine Refining Margins available.

As for the comments regarding signed contracts for delivery of Refined Glycerine, I don't really know why they need to bother, Demand greatly exceeds Supply for refined Glycerine.

And as for the best thing they can do with the spare money when they have some, instead of spending it on a Darwin buyout , I would suggest:

1. Clearing up the debts associated with Singapore
2. Involvement in Projects that will supply Refined Vegetable Oils to Singapore
3. Building the New Plants in Singapore with an additional capacity of 1,800 Million Litres of Biodisel per year

That should take at least another 5 years. I would estimate the cost of building the extra Plants in Singapore would be at least $400 million dollars given recent estimates of $US1 per USG per year in building Biodiesel Plants. (sorry can't remember the source for that $US1 quote)


As for Darwin, that has given them real world experience in the construction and operation of Biodiesel and Glycerine refining plants. I would assume it should at least be able to break even now with Glycerine Refining, but unless they get serious and start planting lots of crops in the North of Australia for Biodiesel Production, there is no point spending any more money there. If they DO start planting lots of Biodiesel crops and get contracts in place, it would be well worth even building new production facilities alongside the current production facilities in Darwin.


To me the value of this company at the moment is just in their Glycerine Refining capabilities, but if we pause to speculate what might happen if Crude Oil Prices keep on rising and the Vegetable Oil Prices go down ...