The main activity of Biofuels is the large scale production and exploitation of biodiesel and glycerine following the construction and commissioning of the initial plant.

Biodiesel is produced from vegetable oils and, as an environmentally friendly product, can make a significant contribution towards reducing green house gases and meeting Kyoto targets.



RNS's from BFC can be viewed at:

http://www.uk-wire.com/cgi-bin/index?search_type=3&words=bfc&go.x=17&go.y=8

http://www.biofuelscorp.com/

>> hlyeo

What makes you think they should always move in the same direction?

BFC is settling back to a new trading base, whilst DOO which got to its peak earlier is now exploring a gentle rise off its new base.

Both should be a constant opportunity of buying in the dips, and even trimming at the peaks if you can spend that much time watching, over the course of the year until they start producing a regular cash stream when they will probably become less volatile.

Their principle difference will remain that BFC is a hardware company, building plants, but not growing them, whereas DOO is more a software company growing the plants, but not investing in building them. The latter get the edge in my estimation by JVing on the plant (construction that is).

My favourite plant is of course the dog rose.

SD

And of course neither stock is a dog...eh SD.

rgrds
gk

The cat's whiskers, definitely! gallick.

oh dear !

Where are they going?http://bfc

Don't ASC me! Looks like a really good dreary down-hearted day to BUY more.

SD

Grabbed some more at 230p. ;-)

Cashed them in +8

Food for thought (excuse the pun)


Published on 7 Mar 2005 by Dow Jones / Yahoo. Archived on 8 Mar 2005.

Biodiesel Boom Raises Ethical Issues -Analyst
by Benjamin Low

KUALA LUMPUR (Dow Jones)--High crude oil prices may have galvanized bio-diesel production, but some questions are now being asked in industry circles about the ethics of using a limited edible resource to meet the world's energy needs, said an influential edible oils industry analyst.

Dorab E. Mistry, director of London-based Godrej International, said he opposes the practice of burning what is an essential food item and believes non-governmental organizations in Europe, where the bulk of the world's bio-diesel is produced, will soon raise their protests.

"The NGOs in Europe will realize the folly of burning an edible oil for fuel and get in on the act," Mistry said in an interview on the sidelines of the recent annual palm oil price outlook conference in Malaysia.

Even the need for cleaner-burning fuel sources for environmental reasons doesn't entirely justify the use of vegetable oils such as soyoil, palm oil and rapeseed oil, he said.

"Clearly, there are alternatives to reducing carbon emissions by using better technology and that is the way forward; not burning an essential edible oil," said Mistry, who has been involved in the trading of edible oils for more than 25 years for India's Godrej group.

Ambitious Targets For Bio Fuel Production

The European Union has been at the forefront of bio-fuel production, setting a target of replacing 2% of the region's fossil fuel requirements by end-2005.

Industry publication Oilworld has said the European Union's bio-diesel output could touch 2.4 million metric tons to 2.6 million tons in 2005, sharply exceeding the 700,000 tons produced in 2000.

The bulk of Europe's bio-fuels are derived from rapeseed oil. Oilworld estimated that close to half of all of the region's rapeseed oil output could go toward bio-diesel production this season.

It would be acceptable to burn edible oils for fuel in times of severely low prices caused by a glut to protect the interests of farmers and producers, Mistry said.

However, for edible oils, now isn't the time as the supply and demand are at a balance and prices are attractive for producers, he said.

"So for that reason, I would ask the people who are planning to use government subsidies for burning oil to go easy," he said.

Mistry forecast global edible oils supply and demand to grow at an even rate of about 5% in the year. Estimates from other edible oils analysts such as Oilworld and James Fry have also indicated marginal differential between supply and demand growth.

By subsidizing the production of bio-diesel, governments may be preventing edible oils from being put to better use, namely as food for the world's population, Mistry said.

"They are also subsiding ethanol from beet and corn, where there is definitely huge overproduction so, that can continue. But for vegetable oils, where there is a tight supply and demand situation, subsidies should be taken out."

Currency Changes May Spoil Bullish Mood

Meanwhile, Mistry said palm oil market players need to be cautious about the bullish price forecasts made by industry analysts at the annual price outlook conference held in Kuala Lumpur March 2-4.

Analysts, including Mistry, had forecast palm oil prices to range from about MYR1,300/ton to MYR1,500/ton in 2005.

At 0930 GMT, the benchmark May CPO contract was trading at MYR1,434/ton, up MYR46 from Friday's close.

While the projections point to further upside room, Mistry said market players shouldn't "get carried away."

That's because a revaluation in Asian currencies, including the Malaysian ringgit, may be possible in the coming year.

There has been persistent speculation since late last year that the Malaysian ringgit, pegged at MYR3.8 to the dollar, would be revised to a stronger rate if China revalues its currency, the yuan.

"I think it's generally accepted that if the yuan is re-valued, other Asian currencies which are also seen to be undervalued, like the ringgit, will also be re-valued," Mistry said.

"We have to take that into account that it will happen in the next 12 months."

A stronger ringgit would put downward pressure on the ringgit price of Malaysian CPO as there would be limited room for an adjustment in the dollar-denominated export price, he said.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Very interesting, gallick.

It confirms the question, if not the answer, I have over palm oil favoured by BFC as opposed to jatrpopha favoured by DOO. I tend towards DOO as the cleverer long-term play - jatropha beans are, I believe, poisonous and therefore are not part of the potential food chain.

SD

RIGHTS ISSUE IN THE MORN AT FAVOURABLE PRICE.

ROUGHLY WHAT PRICE YOU RECKON THESE WILL BE AFTER THE RIGHTS ISSUE.

Not sure anyone mentioned rights. Let's keep things straight here.

As an aside, any financing depends on size and discount to recent overall price. I've seen some placings/rights move as little as 5%, others more. Given the potential I wouldn't suspect it would be greatly discounted.

We'll see.

>> SD

I think DOO looks good long term. Would you caution against going in now after the recent rise, or do you think it has good support at these levels?

P.S. There is no point in asking you an easy one after all!!

rgrds
gk

On the rise again. Can't see the existing high of 285p holding out for more than a week or so at this rate.

rgrds
gk

gallick - I did write a very elegant answer to your enquiry yesterday, but I must have hit the wrong button.

in brief again - given the indeterminate nature of both BFC and DOO charts consolidating around the 250 and 450 mark respectively at present after their rapid recent rises, I would not on current evidence want to buy above 200 and 400 respectively.

Any slight bad news could bring them down. If they continue up, then I'm in already. If there is further news, this could change my mind about adding to my holding.

Depends ultimately, not on where they've come from and what you already hold (Mr Market has no memory of such things), but on your timescale to reap positive results - the longer the safer to buy any time, the shorter the more important timing becomes.

DYOR as ever.

Any conflicting views - interested to hear

SD

For release not later than 7.00am 11 March 2005


Biofuels Corporation plc


Placing and Open Offer to raise 32.7 million and Revised Credit Agreement

Biofuels Corporation plc ('Biofuels' or the 'Company'), which is seeking to
establish one of Europe's largest biodiesel plants, announces that it has agreed
revised credit facilities with Barclays Bank plc ('Barclays') and is proposing
to raise approximately 32.7 million (30.6 million net of expenses) through a
combination of a firm placing of 3,336,956 new ordinary shares and a placing and
open offer to qualifying shareholders of 10,873,328 new ordinary shares each at
230p per share.

Highlights:

Proposed firm placing of 3,336,956 new ordinary shares and proposed
placing and open offer of 10,873,328 new ordinary shares at 230p per share to
raise approximately 32.7 million (30.6 million net of expenses), which has
been fully underwritten by Collins Stewart Limited ('Collins Stewart').

Collins Stewart, nominated adviser and broker to the Company, has
today conditionally placed with institutional and other shareholders 10,873,328
new ordinary shares subject to clawback to satisfy valid applications by
qualifying shareholders under the open offer.

Sean Sutcliffe, chief executive, Robert Green, finance director and
Clare Spottiswoode, non executive director have all agreed to subscribe for a
total of 76,087 of the firm placing shares.

Revised credit facilities agreed with Barclays for up to 22.5 million
in aggregate comprising 13.0 million of term and 9.5 million of working
capital facilities.

The Directors believe that the Placing, together with the revised
credit facilities should ensure that the Group has sufficient resources to
complete the construction of the first plant and commence operations whilst
providing flexibility to commence development of a second Plant when
appropriate.

The Directors of Biofuels are of the opinion that, on the basis of
assumptions set out in the prospectus to be issued later today, the Company is
capable of making 14 million pro forma operating profit in an illustrative
twelve month period. Excluding the impact of commodity hedging costs, this pro
forma figure would be approximately 30 million. These figures assume the
Company is well established with a successful production record enabling it to
access the best markets for its products at market rates.

Evidently some strong belief in this company from the market.

14.2m (47% of existing shares in issue) shares to be issued at 230p added to the 30.2m existing shares now at 273p should average out at 44.4m shares at 259p.

So somethings holding the SP up - seems the prospect of completing the first plant, getting properly capitalised (incl. new agreement on debt with Barclays) and intimations of further plants, together with the prospect of 30m pre-tax profit pro forma once hedging contracts have washed through are to everyone's liking.

Propsective pre-tax PE of 3.84 appears to be cheap - allowing 30% tax gievs a net PE of 5.49 still cheap. Maybe they're right.

Holding on for the ride.

SD

Based on actual profit rather than pro-forma profit the current market cap of 80m will increase to 112m after the share issue. Thus leaving them on a pre-tax PE of 8 once the first factory is complete and up and running.

If they built a second factory of the same size out of the money from this placing that would leave them with a PE of 4. But the RNS implies that the money raised will only be enough to start the other factory. Also there appears to be the implication that no timescale has been set for starting this second factory.

There are risks of any number of things that could happen between now and the target required to produce a profit of 14m per year:

'well established with a successful production record enabling it to
access the best markets for its products at market rates'.

My feeling is that this share is a little overpriced at the moment.