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/

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.

Having been one of the biggest bulls of late... I have to say that I am now out of this one for the time being. Though I may jump in again at a later date.

>> talsii

I hope for you sake you did not get out before the 11% rise today.

Like SD I am going to hang in there.

>> SD Agree with the sentiments in your previous post

rgrds
gk

Boooiiiinnngggg!!! said Zeberdee

Make that 18%

Astonishing
gk

Still has further to go yet, my target is 3.50 next week!

interesting price localsonly - any reason why you care to share with us?

SD

I think 350p is reasonable price for BFC.

Shares in Biofuels Corporation (BFC) edged 47.25p ahead to 300.5p after it said it had secured funding to build Europe's largest biodiesel plant. The company said it had agreed revised credit facilities with Barclays and was proposing to raise approximately 32.7 million pounds before 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 at 230p each. Biofuels also said that the plant would be capable of making 14 million pounds proforma operating profit in an illustrative twelve month period. Excluding the impact of commodity hedging costs, this it said this proforma figure would be approximately 30 million pounds.

hlyeo98 - saw that - very positive news that the SP rose strongly on news of imminent dilution!

Still holding BFC and DOO - latter looking toppy, former supported as above, but long term if I had to choose I'd say DOO had the edge due to its raw materials, low transport costs and JV capitalisation, albeit selling into cheaper local markets.

Both exciting stocks which I take particular pleasure from having "discovered" for myself without the aid of tipsheets or BB's which I was ignorant of at the time I bought.

I shall watch closely next week and probably set a tight 10% stop loss, to buy in lower if possible. Approaching time to take out my original stake, especially DOO now within a whisker (dog's not cat's of courser) of tripling my investment.

SD

SD, I was working on a 38% up tick from the base price before the movement started at 2. Actually, to be perfrectly honest, I was surprised by the strength of the move upwards after the announcement on Friday and there is a near short term chance that it could go further, as always DYOR and this one will be fun to trade next week!

big gains next week i expect,bit hot this sector at the moment with DOO as well.

Yes, localsonly, I was pretty surprised that it went so far. Here's a strong mention in the Times from Saturday

March 12, 2005

Biofuels shares soar as it wins backing for new plant
By Peter Klinger

SHARES in Biofuels Corporation, the AIM-listed company that wants to turn palm oil into diesel fuel, soared 15 per cent after it secured sufficient funds to build Europes biggest biodiesel plant on Teesside.

Biofuels said yesterday that it would raise 32.7 million through a placement and open share offer. The fundraising, priced at 230p, has been underwritten by Collins Stewart, the stockbroker, which will pick up any shortfall. The fundraising will also expand Biofuelss capital base by 30 per cent.

News of the fundraising sent Biofuelss share price 39p higher at the close to a record 300p. Biofuels listed on AIM last year.

Sean Sutcliffe, who became chief executive in January, said he expected the firms plant at Seal Sands, Teesside, to be completed by July, with full-capacity production of 250,000 tonnes of biodiesel by September.

Biofuels has already forecast that a full year of production should generate 14 million operating profit. The forecast will increase to 30 million from 2007 when various commodity hedges put in place by previous management expire.

The profit forecasts are scheduled to multiply if Biofuels delivers on its strategy of building a network of biodiesel plants across Europe. The inaugural plant is expected to cost 28 million but subsequent facilities are likely to be cheaper.

Mr Sutcliffe said that Biofuels had yet to make a decision on where to build a second plant, although the most likely locations would be either next to the Seal Sands facility or in north-western Europe.

Petroplus, a Dutch oil refiner, has committed to buying up to 75,000 tonnes of biodiesel a year, which it expects to blend with mineral diesel before selling the blended diesel to motorists. Biofuels expects to sell the rest of its biodiesel production into Europes spot market.

Mr Sutcliffe said that normal diesel engines could run on his companys biodiesel. However, engines fuelled purely by biodiesel would not be covered by car manufacturers warranties. He expects commercial diesel blends to contain about 5 to 20 per cent biodiesel.


The strong oil price and more frequent articles about peak oil must also have a positive effect for alternative fuels currently and for the future. I think, like you and bigbobjoylove, there is further to go with BFC and DOO in tandem (I guess anyone in one is in both, or at least very aware of both) next week - let's hope it's more roller coaster than helter skelter when it gets to the top.

SD

Ah SD you are familiar with the peak oil concept. The well kept secret is starting to get around.

rgrds
gk

This will be brewing up tomorrow.

Been a funny morning for the sp. Lots of buying pressure since mid-morning but there seems to have been a resistance to letting the price increase, and at the first excuse of a couple of sells it drops back. Can someone interpret what the mms are up to?

I imagine even MMs have to take profits sometime. I expect they are glad to offload a little at this exalted price and not take any more on. Maybe the SP has reached its next level of consolidation for a while, or just a pause for breath - can't blame it.

SD

On refelection, I've taken a third of my hoding out, just to lock some in at this level aftert a very good run up from 111p. Leave the rest to ride for now.

Just been notified that I can have 6 shares for every 17 I held at 5pm on March 8th for 230p per share.

Not too difficult a decision with the sp at its current level!