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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (93854)	11/21/2007 10:42:19 AM
From: johnlw	Read Replies (1) \| Respond to of 206181

So they are going to be allowed to import this feedstock? Can truck it from Prince George to Washington cheaply? Seems like a bit of a stretch. When this happens, VPI will be perfectly situated to grab the pine beetle devastated trees from British Colombia for next to nothing - and margins will explode, earnings right along with them.

To: LoneClone who wrote (93854)	11/21/2007 10:47:46 AM
From: Archie Meeties	Respond to of 206181

Problems: They are touting ethanol from cellulose, but state that initially they will generate ethanol from corn. The infrastructure and process for the two feedstocks is different, its an either/or proposition. If they are going to use pine bark to make ethanol, and thats the appeal of the area, then they should just demonstrate their capacity to do that profitably now. As it is they are not going this route, suggesting that they don't have the know how to do cellulostic ethanol. Also, this "Profits from the production of 100 million gallons of ethanol are projected at $28 million using negotiated and contracted corn prices of $3.20 per bushel and ethanol prices in Washington State of $2.20 per gallon." I'm lost as to how their can be an believable projections of cost 2 years in advance. If they had actual hedging in place then they could make reasonable estimes. They do not have hedging, as they have no production.