Will24 Nov 2011 21:25
I suggest you read through the reports on the bio futures website ..
The plant has 200k tonnes a year capacity
The company can make money 2 ways
1.Buying raw palm processing it and selling it
2.Processing as agent known as tolling when they charge a fee for processing other palm oil ,
Number 2 is interesting as from the results they made 20 quid a tonne from jan to jun - small scale but if they did that for 200k tonnes..that's 4 mill gross pa ..
even if it cost 50% to process (it won't) then that's 2 million a year net ..
Market cap now is 5 mill gbp...vs 2 mill net a year...
This is a very undervalued share in a low risk growth business ...the price is down like all others thanks to aimegeddon ...