14 Dec 2006admin correction● Neutral
Corrects the open briefing: Beatrice biodiesel production is expected to start in September 2007, not December 2007 as stated earlier.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
5 Dec 2006capital raising announcement● NeutralMajor
Secures a A$40 million placement of 114.28 million shares at 35c, subject to a mid-January 2007 shareholder vote, replacing the failed Amaranth note. It includes a A$10 million bridging loan from BlueCrest, converting to shares, and a A$25 million Cornell equity line. The price is well below the earlier 52c.
1 Nov 2006quarterly activities report● Neutral
September quarter report: construction began at both Beatrice and Swan Hill; Amaranth's US$30 million note was not taken up after its losses and a replacement is being advanced. More than US$20 million is committed to Beatrice, and a US$25 million Cornell equity line is being finalised.
29 Sept 2006annual report● Neutral
Lodges the audited 2006 annual financial report. The cover letter carries no commentary of its own; the preliminary results were already released on 14 September.
29 Sept 2006capital raising announcement▼ BadMajor
The board withdrew the Swan Hill placement resolution (up to A$31.2 million at 52c) at the shareholder meeting, saying the share price and sector sentiment made terms unattractive. Beatrice has US$28 million senior debt, a US$5 million working capital facility and US$2 million tax increment finance; a replacement convertible note is conditional on due diligence.
28 Sept 2006investor presentation● Neutral
Conference presentation on Beatrice biodiesel, with cash of A$12.06 million at 31 August and about 90 million fully diluted shares. Both plants are described as under construction and expected to be operating by late 2007. Largely repeats known facts.
21 Sept 2006capital raising announcement▼ Bad
Withdraws the 52c share purchase plan while the board reconsiders the institutional placement pricing, and returns funds already received. It intends to restructure and reinstate the plan at a price consistent with the placement.
20 Sept 2006debt financing▼ BadMajor
Terminates the exclusive US$30 million convertible note deal with Amaranth after Amaranth announced substantial trading losses on 18 September, and starts renegotiating with another institution's term sheet. Senior debt has credit approval. This undermines the Beatrice funding package announced on 23 August.
14 Sept 2006annual report▲ Good
Unaudited full-year result to 30 June 2006: profit A$4.146 million versus a A$4.14 million loss, helped by the Denco sale (A$8 million plus A$1.5 million costs). No dividend. Swan Hill construction has begun and full finance for the A$75 million cost is still being arranged.
30 Aug 2006regulatory community update▲ GoodMajor
Groundbreaking held 28 August for the Beatrice biodiesel plant in Nebraska, described as a US$52.5 million, 50 million gallon facility. Civil work starts early September and operation is scheduled for Q3 2007, so the project moves from development to construction.
25 Aug 2006capital raising announcement● Neutral
Offers eligible shareholders a share purchase plan of up to A$4,992 (9,600 shares) at 52c, a 14% discount to the 60.49c five-day average, closing 21 September. It matches the Swan Hill placement price announced 23 August; the plan is capped at 24.4 million shares.
What it means for a shareholder
9,600 new shares at A$0.520 to raise about A$4,992. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
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23 Aug 2006capital raising announcement▲ GoodMajor
Beatrice gets a US$60 million package: US$30 million senior debt plus US$5 million working capital, and a US$30 million convertible note. Swan Hill funding starts with up to 60 million shares at 52c (up to A$31.2 million), then a share purchase plan, a A$20 million standby facility and project debt.
14 Aug 2006investor presentation● Neutral
August market update says Swan Hill construction is planned to start in August 2006 and Beatrice funding is in place subject to documentation and shareholder approval. Swan Hill capital cost is now estimated at A$75 million, up from about A$65 million quoted in June.
31 July 2006quarterly activities report▲ Good
June quarter report: completed the A$12.45 million placement, signed CHS soy oil and offtake contracts, and agreed exclusive conditional term sheets for full Beatrice financing. Swan Hill long-lead items committed; ethanol sites in NSW and WA optioned.
6 July 2006director officer appointment● Neutral
Carla Andres, a US biofuels lawyer and existing board member, becomes CEO of the US subsidiary, renamed US Canadian Biofuels Inc. A US headquarters is planned for Green Bay. Beatrice financing talks with lenders are said to be at the definitive stage.
4 July 2006regulatory community update● Neutral
Says recent Australian biodiesel legislative changes do not affect its plans, as it has no immediate Australian biodiesel developments and keeps a watching brief. Notes a US bill to make the US$1.00 per gallon biodiesel tax credit permanent.
3 July 2006asset acquisition disposition● Neutral
Issues 1.5 million shares to the Beatrice seller's company, Monte Cristo, as the second tranche for the Beatrice acquisition. Paid so far is A$300,000 plus 3 million shares, out of A$600,000 plus 5 million shares in total.
3 July 2006material agreement▲ GoodMajor
Buys back Multiplex's rights to construct its Australian projects, paying 800,000 shares as full settlement. This frees the company to finalise construction contracts for Swan Hill; Multiplex was its former major shareholder.
9 June 2006investor presentation● Neutral
CEO interview on Swan Hill ethanol: cost about A$65 million, commissioning targeted for Q4 2007, construction rights bought back from Multiplex. Proceeding on equity because no fuel ethanol offtake contracts exist yet; more capital being raised.
7 June 2006investor presentation● Neutral
Conference presentation repeating known facts: cash A$17.5 million, both projects 100% owned, market capitalisation A$52 million at 65 cents. Phillip Toyne is listed on the board and Rob Pedulla as financial controller and company secretary. No new announcements.
26 May 2006contract award▲ GoodMajor
Beatrice signs a three-year deal with CHS Inc to buy all its crude soy oil, with a 12-month extension option. Together with the earlier biodiesel offtake, this resolves the open feedstock thread and supports project financing for the plant.
24 May 2006investor presentation● Neutral
CEO interview on Beatrice biodiesel: stage two capital estimate rises to US$45 million (from US$35 million) due to extra storage and higher commodity and construction costs. At US$3.00/gal he expects US$50 million annual EBITDA. Soy oil contract at final draft; land contracts due June.
15 May 2006director officer appointment▲ Good
Conservationist Phillip Toyne, former head of the Australian Conservation Foundation, joins the board as a director from 15 May 2006. The company says his environment and government experience suits its plan to expand biofuels investment across regional Australia.
4 May 2006director officer appointment● Neutral
Roberto Pedulla, recently made group Financial Controller, becomes Company Secretary, replacing David Lymburn, who held the role for three years and stays on as a non-executive director. Administrative handover.
3 May 2006other● Neutral
Technical brochure on Axens' Esterfip-H biodiesel process, the technology planned for Beatrice. It carries no company news or new figures.
2 May 2006contract award▲ GoodMajor
Beatrice Biodiesel signs a five-year take-or-pay deal to sell all of its 50 million gallons a year to CHS Inc's UBE unit, with an option for twelve more months. This offtake contract supports project financing for the plant, targeted for operation in late 2007.
28 Apr 2006quarterly activities report● Neutral
March quarter report: Beatrice acquired, Swan Hill and Beatrice committed, and the 41.5 million share placement raised $12.45 million. All corporate debt repaid, and the 27 April meeting passed all resolutions. Detailed engineering has begun on both projects.
28 Apr 2006investor presentation● Neutral
Presentation from the 27 April general meeting, repeating known facts. It shows cash of A$17.5 million and about 79 million shares on issue (87.9 million fully diluted), with both Swan Hill and Beatrice projects described as 100% owned.
24 Mar 2006agm notice● Neutral
Notice of a late-April shareholder meeting to approve the 41.5 million share placement and director options: 3 million for the chairman and 600,000 for each non-executive director. Share price hurdles were raised to 55, 65 and 75 cents after the share price rose.
17 Mar 2006capital raising announcement▲ GoodMajor
Raises $12.45 million through a placement of 41.5 million shares at 30 cents, subject to shareholder approval. Funds $9.3 million to start building the Swan Hill ethanol plant in Victoria and $2 million for Beatrice biodiesel; more funding is still needed.
What it means for a shareholder
41.5m new shares at A$0.300 to raise about A$12.4m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
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