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/

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!

Good - I can start to rebuild my holding at an excellent price. My notification willl take a little longer coming as it does via Crest.

SD

Yes 6 for every 17 is good. I still had some left on friday morning so I will benefit from this.

I have already short sold the new issue shares.

I am very interested in buying PD Ports.Epic PDP.
As they have facilities for specialist edible oils handling,will they be used for rapeseed and palm nut oil handling by Biofuels?I presume that they will be buying already processed oils.
Biofuels state that the price of rapeseed and palm oil will be cheaper than last year.Their estimates of future income are based on these prices.Does this mean that they have already bought their oils for 2005,or is this just an estimate.They will be buying these commodities in dollars.Has a possible appreciation of the dollar been taken into account?
Have a look at PDP anyway.There proximity to the growing Eastern European market,which they point out looks promising.
Ethel

I,ve been notified of the new share issue by Halifax. They want paying on or immediately after 31 march. This Open offer may or maynot be comfirmed at the EGM to be held on 6 April.If it is comfirmed I cannot sell until 8 April.Do you normaly pay upfront in these situations. Also, if it is such a good deal the likes of me dont normaly get a lookin. Your comments would be appreciated.
This thread has gone very quiet which is not very promising.
Dave

davehmiller

It's a good offer - at 230 per share. Be pleased the directors are letting all shareholders get access to this. They obviously think everyone will want it and more. The usual reason for restricting placings to institutions is to be sure by arrangement that the full quota will be taken up. There is no such concern here.

If you think the price is going to fall between 31st March and 8th April, you can always sell your existing holding any time from now (I top-sliced before I heard the news, but those I sold still qualify for the rights issue - so life can be pretty advantageous), so your max exposure is 6/23 of your prospective holding - it's not a bad risk, given I cannot see the price falling anywhere near 230 - even if fully diluted by new issue the post-issue SP comes to 285. If you think it will fall below 230, do not subscribe for the rights issue and sell everything you have on Monday at 8.00am sharp at any price.

They're not raising it to cover a loss or convert debt into equity - they're raising it to expand into a pre-sold market supported by government benefits (20% rebate on tax for biodiesel) and other macro economi-social positive circumstances.

SD

>> Good call SD and thanks for the maths.

I can see that it may be prudent to cash in some chips now, on the basis that you will be picking up some cheaply - and of course there is always the dilution effect (vis a vis the offer).

However, clearly the SP is temporarily in "no mans land" and has hit an unsettled patch, as a result of the new offer. The point is that in my view, on the basis that it is impossible to call a top - one should not attempt to do so. Meaning, that although the SP has soared - who is to say that there is not more to come, albeit that there will be short term fluctuations.

In short I remain v. bullish of this stock - and don't forget that the biggest trading crime (quite literally) is to NOT TO RIDE YOUR WINNERS. I think I will ride this pony (and trap) a little longer.

I hope to be telling that I told you so, when it hits 400 p (which seems to be a nice round number, 50p above localsonly call).

rgrds to all
gk

gallick - I guess a "virgin" share (i.e.one on its first vertical slope of the chart with no developed form to guide you and no profits yet either) is impossible to call, other than, if it's gone this far it will go further as long as the fundamentals don't change - but you can't tell what will happen tomorrow, only next year. So it's just a matter of your time scale - hold forever and ignore all dips and peaks. Or top-slice to take out your original costs and ride the rest for free, possibly adding back in on any major dips, thus increasing your holding over time for the same original cost. This is what I've done.

see you in 5 years' time, when we can say in unison "told you so!"

SD

With the price falling back towards the 259 average post issue announcement price as per my earlier post 156 - which is sort of coincident with a minor consolidation around the 250 mark, my buying finger is starting to itch a little (a bit higher than my previous 200 buy limit in light of recent unexpected strength). With current market sentiment being generally negative, we may fall back to nearer the strong support level of 200 (once a well established resistance level, then broken is now a good support level). So the 230 rights price might be a good buy limit to aim for - the price should not fall much below here for long, since supported by the placees.

Might also be worth waiting to see how strong the take up on the rights issue is (fully subscribed I hope!) to guage sentiment be fore deciding on a buy price.

Even with the rights issue, I wouldn't mind a whole chunk more at the right price, 'cos I'm sure we'll be back over 300 as we come on stream in September/October (subject, God forbid, to any further delays).

Similarly on DOO, we're falling back towards 400p where we first paused on the way up. That remains my buy limit for now.

DYOR

SD

If there were any further delays then the SP would have a long way to fall.

True - but I suspect they have had to convince the placees of the upcoming issue that they are heading down the home straight to production as announced by now. So I do not seriously anticipate any further delays.

Wow - my last post of 2 days ago now seems like a long time ago. I have reduced my holdings and may do again tomorrow if the trend continues. I'm certainly not buying until I see an uptrend again. Although a dilution seems to make sense, even the 230p purchase area could come under pressure. Agreed this should be much higher in a year/6 months, but I do not like sitting tight and seeing gains ebb away.

rgrds
gk

edit: Should of clicked Back to List not Post Reply