Well I had great doubts in my mind before I read through the announcement, but it really does sound good.
Although $A15M will be required to fund the development over the next 5 years, only $A1M will be required in the current financial year, and they do not expect to have to raise capital by selling more shares as has almost every other Biofuels company.
The end result will reduce their feedstock costs by about $A100 a Tonne. This is equivalent to about 10 cents a Litre or 15 cents a share based on my rough calculations.
Interesting that this announcement was mentioned in my "Interesting Depth" blog and after someone bought about 1,000,000 shares in SBI this week ...
SBI Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
