Landkom is fast becoming one of Europes largest producers of high value agricultural feed stocks including oil seed rape (OSR) and wheat for the biofuel and food markets. The company's production is centred in Western Ukraine where the land is amongst the most fertile in the world. In 2007 the company will have planted 10,000 hectares of land for harvest in 2008.

Demand for feedstock in markets in Europe and the rest of the world is likely to outstrip supply for several years to come. European Union (EU) biodiesel, which has been mandated for a 5.75% biodiesel blend rising to 10% by 2020, is likely to result in a demand/supply imbalance in the world OSR and wheat market.

Landkom is well positioned to take full advantage of opportunities due to its geographical location in Europe, modern farming methods, low cost operations, better than average yields and flexibility of crop.

Landkom is a major positive contributor to the economy as we are now fully utilising former agricultural land which was fallow.

Raised 50.1million through its placing on the 15th of November 2007 at a price of 50 to 52p a share

Current Targets (Expected upgrade and update on planting in March 08)
Current rights to 50,000 hectares (10,000 planted) and a target to increase this to 350,000 hectares

Landkom Homepage

Landkom International Plc
28 January 2008


28 January 2008


LANDKOM INTERNATIONAL PLC


Landkom fully endorses proposed EC biofuels sustainability criteria


Landkom International PLC (AIM: LKI, 'Landkom' or 'the Company'), the Ukrainian
producer of high-value oil seed rape and wheat, fully endorses and supports the
transport biofuels targets and the strict environmental sustainability criteria
for biofuels proposed on 23 January 2008 by the European Commission.


In particular, Landkom supports the proposals relating to restrictions over the
use of forested land or land designated for forestry for crop production and
measures to be taken to reduce environmental damage by de-forestation.


All of the land leased and cropped by Landkom is non-forest arable land, which
has traditionally and legally been designated and used solely for the production
of crops such as wheat and oil seed rape for many decades and in some cases for
centuries.


Landkom aims to produce First Quality OO Grade Oil Seed Rape with full
provenance and adheres where possible to EU quality control standards and other
control assurances from field to silo.


Environmental impact studies commissioned by Landkom confirm that it does not
fall within any of the proposed EC criteria regarding environmental
sustainability. Moreover, the EU restrictions fully complement Landkom's
environmental and ethical ethos.


In addition to meeting all of the proposed environmental standards, Landkom's
activities are increasing levels of employment and social cohesion in the
region; are resulting in greater productivity from land that has been idle for
over a decade; and are supporting further investment into the local economies of
the regions in which Landkom operates.


Richard Spinks, Landkom Chief Executive, commented:


'We are fully compliant with the proposed directive from the European
Commission. We take our responsibilities regarding environmental sustainability
and climate change very seriously and we therefore welcome and fully support the
proposals.


'Getting this right is important. We not only have the ambition to become
Europe's largest single sustainable producer of oil seed rape and wheat within
three years but are also making a significant contribution to the improved
standard of living of the people living in the regions where we operate. This
supports the Regional Administrations' ambitious plans for social welfare and
economic improvement.'


For further information:


Landkom International Plc

Hmmmm you've got my attention, its just getting the time for any research, 10,000hectares doesn't sound like a great deal, i had a quick look at their site but do we know cash position, market cap etc...?

Big write-up in Shares Mag 7th feb.
Market value 195m
As quoted "No forecasts are available but this should change after it's upgrade goes public next month (March)."
3-4% spread on the sp & looks like it may be tricky to trade any substantial quantity. Worth watching, imo.

Through O8 this should press ahead strongly, am in only as of a few weeks ago. As Harrycat says an update is due in March when it is very likely the 10'000 hectare prediction will be upgraded significantly. So I've bought in before that date and expect to see solid progress continuing as the industry and Landkom continue to find favour in the market.

A few months ago Investors.Chronicle also ran a similar article, citing LKI as a strong buy.

What about funds, any risk of dilution/placings?

Data very sketchy at the moment.
No historic or prospective PE & no yield figures.
Target of total of 60k hectares by end of '08.
The attraction of this stock is definitely the current price of soft commodities, but the slightest hint of a poor harvest would knock the sp badly.
Probably best to await figures in march to have a better idea of the financing.

The IPO on the 15th of November 07 raised approx 50.1 million for spending on planting, machinery and increasing the company's land bank. I doubt they would have extinguished all of this cash already but I would not rule out a fundraising in 2009.
They will also be recieving revenues from the harvest in July and August which should heavily support the company through 2008. Would suggest buying before the news in March, but this of course depends on any aversion to risk

RNS this morning...

LONDON (Thomson Financial) - Landkom International PLC said it has produced its first biofuel, which it can use to cut the running costs of its fleet of trucks and tractors.

The Ukraine based feed stock producer said the cost of a litre of its own-produced bio-diesel is 30 cents, or about a third of the current cost of the diesel with which it will be blended, initially in a 20 pct bio-diesel and 80 pct diesel combination.

Landkom, which spends 2 mln usd a year on mineral diesel fuel, said the biofuel has been produced from its non-core crops on existing marginal land. TFN.newsdesk@thomson.com yos/ukn/slm

Good to see Chief Exec supporting company with cash...
This RNS from 25.01.08...

LONDON (Thomson Financial) - Ukraine-based feed stocks producer Landkom International PLC said chief executive Richard Spinks bought 13,300 shares at 76 pence each, taking his stake in the company to 11.41 mln shares or 6.03 pct.

Certainly had a good start to trading...

Had a read of Farmer's weekly, old habits die hard!Talks about agriculture becoming more important now than since the war due to rising population, prosperity therefore demand for exotic foods, reduction of agricultural land by growing housing pressures, falling agricultural yields, higher input costs and wilder weather. Not sure whether it is easier to just buy cfds/ spreadbets in soft commodities which will only benefit from all of the above as well as a falling dollar. Difficult to appraise the management, politics risk of disease involved in Landkom's venture and commodities will always have some intrinsic value whilst shares can ultimately become worthless or diluted.

Have wheat and corn futures on watchlist with spreadbet, but looking at this type of company, in its infancy to cover agricultural would be a favourable exposure and with no running costs of SB or CFD's...

Share price powering ahead. My stake is via a quarterly spreadbet with IG-index

Good news today. Landbank predictions at 115'000 hectares by the end of 2008. Currently at 76'000.

Hope everyone bought in before the update,

Good results and plans... future is bright for this co, imo

Looking very good here, been acquiring some stock of late.

2 to come. Oil is 129

That makes oil $254 pb!!! I think not! :o)

The production is planned to increase 30% a year.
Given their performance this year, the increase can be much more and much more productive than the current levels.

Their cost is very low... Watch and learn... DGO was 10p when I suggested to buy!