They seem to have locked up their PDF files so have supplied this the long way!!
Looks like a bottom drawer case.
Commsec research report dated 22.3.07 buy/outperform valuation $1.77
"The Darwin plant has not completed commissioning. The plant is able to produce in line with name plate capacity and meets specification standards, but not under continuous production. Over 2 m litres of biodiesel production awaits distribution. Lurgi plants (as is being used for this Darwin plant) have proven to run at 110% to 120% of name plate capacity. However, further filtration upgrades are required for the Darwin plant to hit these targets. Filtration problems have been successfully overcome at other Lurgi plants. Full capacity is expected to be reached by 30 June 2007, and commissioning will occur during this time. This horizon is longer than expected and comes as a disappointment to BEI and NFL. In other news, long-term supply agreements are currently under negotiation with multiple suppliers. Senior NFAL management are currently in Asia negotiating these contracts at "a significant discount to the current spot price". Long term supply agreements would significantly de-risk operations. Recent delays with the commissioning of the Darwin plant, although disappointing, will place NFL in a good position to have the three larger wholly owned plants in Singapore running in line with expectations. Investors should remember that 2H08 and FY09 is the focus of the NFL valuation."
Regards
BGC Price at posting:
0.0¢ Sentiment: None Disclosure: Held
