QIN bought 40 tonnes of grower owned wood for AU$131/kg. This...

QIN bought 40 tonnes of grower owned wood for AU$131/kg. This converts to AU$3540/kg of oil equivalent at a 3.7% yield, or around US$2690/kg. QIN's average sale price in H1 FY17 was $US3906/kg for its oil. Hence this buying of grower owned wood is definitely not a Ponzi scheme, but is a legitimate commercial transaction with a good profit margin.

The only question is when will the timber or the processed oil be sold. Given the large unmet market demand for wood in India and China and the growing demand for QIN's quality oil, I have concluded this will not be long, and have decided to maintain my long investment position.