re: ann. out Well to me, there is more positive than negative...

re: ann. out Well to me, there is more positive than negative news in the latest announcement.

Train #1 has started processing Crude Glycerine this week.
Train #2 is undergoing commissioning tests
Train #3 expected to follow in mid March

Perhaps we could reasonably expect 2000 tonnes of Crude Glycerine to be processed in this quarter and perhaps 10000 tonnes of Crude Glycerine in the following quarter, leading up to full production in the following financial year.

Other good news is that they have identified 80,000 tonnes of Crude Gylcerine so that believe they should be able to run the Glycerine Processing facilities at full speed for the rest of 2008.

The final piece of good news is that an Audit is to be carried out to check that they can produce "Kosher" grade Gylcerine which sells at a premium.


For the first part of the bad news, they need to raise some more Capital, which was something I was hoping was not going to occur. Provided this does not occur through the selling of more shares this shouldn't have an unduly negative effect on the share price.

Perhaps the most important part of the bad news was that they had a $30 million non cash provision for impairment of the loan to NFAL.


Just remember folks, if the share price stays below 33 cents up until the end of this financial year, we don't have to worry about the dilution effect of 50 million options on our existing shares