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Their 3D rendering on their website makes it look like they will be on the parcel fronting the canal. I didn't think this property was owned by the Port though.
Phillip
They say that they'll be set up to receive wood by barge, rail, and truck so I imagine they will have a variety of sources and costs will vary by contract and transport method. My guess is that barge will be the cheapest, followed by rail, and then by truck. With the chipping plant at the Port of Natchitoches on the Red River, my presumption is the bulk of the wood will be chipped and stored there and the Baton Rouge plant will bring in the chipped material for processing.
Phillip
Finally the meat and potatos we've been looking for. Great find.
Phillip
Other tenants at the Inland Rivers Marine Terminal include a heavy lifting company and a cement mixing company. 'Sounds like a one stop shop in your own living room for building a pellet plant.
www.portgbr.com/content/21-inland-rivers-marine-terminal
•Mammoet USA South Inc., specializing in engineered heavy transport and heavy lifting. www.mammoet.com
•Katoen Natie Gulf Coast, Inc. offers polymer packaging services to area petrochemical clients including warehousing, packaging and transloading of polymers with fully automated packaging lines for bags, supersacks and boxes. www.katoennatie.com
•South Lousiana Cement provides import, mixing and distribution of cement. www.slacement.com
•Dow Chemical Company, leasing a 10-acre marshalling yard for containers. www.dow.com
Volume is definitely up and the MACD and accumulation charts look good. Where we go from here and the timing I'll leave to the crystal ball to predict. I'm just glad to have verifiable news. The next 90 days of this lease option will be a go or no go for the company. If financing doesn't come through, I wouldn't be surprised to see the 90 day term extended if the Port doesn't have another tenant lined up.
Phillip
It looks like the conference will have a financial component on the agenda. That and networking may be good for them, but I doubt contracts would be inked at an event like this. Maybe a foot in the door here and there, but the attorneys and time would be involved in any deals so I wouldn't be hopeful of any major announcements coming out of the conference in the short run. Being a fledgling industry though, they will be rubbing elbows with the right people.
Phillip
My guess is that BMSPF will spend the next 90 days in this option agreement working on the financing issue. They have a purchase agreement with LG that they've stated won't go anywhere if their schedule slips. They have a design that is shovel ready after site specific modifications are made. They have a site selected on the Mississippi River that can bring in raw materials from the entire midwest that also has access to ocean bound shipments to the rest of the world. I think they will be getting their pink ribbon out and packaging this bundle up to sell to financial backers. The multimillion dollar question is what else are they going to throw into the package? They've already stated they would give up 30% equity in the plant. What about shares to the prospective investor? May cause dilution, but may be nice to have deep pockets that would be motivated to try to increase share price. Anyway, lots of possibilities, but in thinking about this Baton Rouge site, I think it just may be the competitive advantage that may set them apart. Float raw materials down river, then ship them out further down the river. Sounds cheaper than hauling in, processing, hauling out, loading a cargo ship, then sailing away.
I'll be the first to admit that I don't know the first thing about constructing a pellet mill or what it will cost but I have been involved with public works construction projects for about 15 years. Actual construction costs fluxuate temendously based on region, cost of building materials, debt servicing costs, current economy, etc. I've seen projects with a $900,000 engineers estimate come in at $2 million and vice versa. The thing that BMSPF has going for it is a lot of unemployed construction workers willing to work cheap, oil is reasonable, transportation of heavy materials can be offloaded by barge, the construction cost index for Baton Rouge I'm sure is cheaper than here in California,and environmental permitting and mitigation is likely minimal in La. They could have flood plain studies that need to go through FEMA, but I imagine that's an area that has already been studied to death and their project would just be an adder to one that has already been done.
What bothers me more than anything is the overly ambitious construction schedules and timeframes we keep getting. In my eyes they've lost more credibility on that front and that's why I follow this stock so closely. They're plenty of eyes on my large cap stocks to keep them honest, but with penny stocks, you can lie and get away with it.
No, but I tried contacting the Port and have been requested not to contact them. I suspect we'll have to wait until the press release or meeting minutes uless someone else has some inside information.
Phillip
The Baton Rouge Port Commission doesn't meet until 5:00 PM local time. I don't know what time zone they're in, but my guess is we have an hour or two before the meeting starts and a couple of hours until the meeting finishes.
Phillip
Here's a map of all of the land owned by the Baton Rouge Port Comission. I can't find a 90 acre parcel, but maybe they're carving a piece out of the 190 acres fronting the canal. Or combining a couple of other parcels.
Port Owned Land
Phillip
Location Map of the Inland Rivers Marine Terminal where BMSPF is negotiating a lease:
www.portgbr.com/popups/location.html
Google Earth View
Phillip
I have the same concern about share dilution, but there's a couple of things that alleviate my concern. With the amount of money required to fund these projects, they could never issue enough shares and find enough buyers at the current prices to get what they need. The other thing is that they've indicated that their intent is to use debt servicing for a portion of it and an equity stake in the pellet plants for the rest. I don't like giving up equity, but ownership of 70% of a pellet plant is better than 100% of no pellet plant.
Phillipp
Thanks. That's a good find.
Why do you say that? Do you have a link?
I saw that also. These wild price swings with only 200 shares at a time mean nothing. Volume and price gets my attention.
This outfit looks like a cookie cutter of what BMSPF is saying that they're doing.
Point Bio Energy
Phillip
It's in the MD&As on the Sedar website.
It's a plant in Baton Rouge.
Phillip
Thank you for that post. I suggest everyone read the MD&A's since this sheds some light on what's going on. Here's a quote:
"Plans to build a pellet plant in Cowichan Lake B.C. have been put on hold as a better opportunity became available in the Southern United States. The opportunity to build a much larger plant capable of producing up to two million tonnes per year with cheaper fibre and labour costs is too appealing to not proceed.
The Company was approached by a government entity (“GE”) to determine if we had an interest in building a pellet plant in their state. We have been requested to maintain confidentiality with respect to the specific location until such time as we are in a position to formally announce commencement of construction. They presented us with a very attractive package of benefits if we located a plant in their state. The Company’s management team spent a week traveling the specific state with a representative of GE where we looked at potential plant sites and met with various politicians and potential fibre suppliers. The results were so positive the decision was made to proceed with the development of a facility in the state. We have looked at sites large enough to house our first plant with a capacity to produce one million tonnes of white wood pellets in Phase One. Phase Two will see production increase to two million tonnes per year and the conversion from white pellets to torrefied pellets."
Phillip
I've been monitoring the Cowichan Valley Regional Board Meeting Agendas/Minutes. All other rezoning has to go to their Board so I presume this one does also. They also have a list of all of the permits pulled on their website. So far nothing for BMSPF. Here's the URL:
http://www.cvrd.bc.ca/
Phillip
The answer is "no" and "no". They have to rezone the property and subdivide before they can start building. Neither of those have occurred yet.
Phillip
Interesting article just released:
http://www.environmental-finance.com/news/view/2484
A couple of points I took from the article:
- Ensuring the sustainability of biomass fuel is “the biggest unquantified risk” facing Drax, operator of the UK’s largest coal power plant, according to its head of environment.
- Power producers are walking away from biomass produced in developing countries (one was a $194 million investment).
- Producers are choosing secure North American biomass producers.
- Vattenfall has a target to replace 50% of the hard coal used in its power plants with biomass by 2020 and has other pilot projects going on in Europe and Canada.
Phillip
True, but my point was that it always seems to be at the end of the day on Fridays that this happens. 'Just wondering what the intent is of these trades or if there's a reason other than bumping up the share price for the weekend.
Does anyone know why we have these end of day paint jobs on Fridays? I'm curious why there always seems to be a spike on Friday afternoons before the closing bell.
Phillip
Another bullish article on the future of biomass:
http://biomassmagazine.com/articles/6130/d-c-clean-energy-investor-calls-biomass-secure-solution/
Phillip
I think it's going to be a little while. They need financing, rezoning, and subdividing before they can even break ground. The raw materials and fabrication of plant equipment I imagine have a lead time also. Personally, I wish there was more information released to investors, but at the same time I'm glad they aren't issuing PRs with a bunch of promises and deadlines that aren't met. I think they learned their lesson with their October 2011 groundbreaking.
Phillip
Since previous press releases have indicated that they are looking for a joint venture to raise the remaining capital that they need, I would think that finding that partner would be one of the next press releases. If you don't have the money, you can't break ground. Then again, they could put it all in one package and announce the joint venture partner and ground breaking date into one PR, but they still need to rezone and subdivide.
Groundbreaking won't happen any time soon. If they reported groundbreaking, I would probably exit my position because I know it wouldn't be true. I think the more likely press releases would be to report: permit was applied for, rezoning is going to the council, joint venture parter found for balance of construction costs, property has been subdivided, etc.
'twasn't me this time.
I have an impartial source that has been responding to my inquiries, but I've been a pest so at some point I think they may stop responding. I shot them another email and I'll get back to you.
Wierd, my trade notification was sent to me, but there's no record of the transaction occuring in my brokerage account. There are some funny things going on here.
That was me. I took my all or none order off and they did a partial fill at 0.07. I didn't know I had two higher orders above mine.
It could be. I tried to put a limit order in and it would only let me do 50,000 increments. I placed one order, hit the back arrow on my browser to put another order in and notice it kept my 50,000 in the number of shares field so I placed another order. Being in a hurry, I didn't notice that it changed the limit order to a market order and I accidently sold 50,000 shares at 0.007. Man was I ticked, but didn't have anyone but me to blame.
Thank God for averaging down.
Scroll down to the "Metrics" section in the article at the link below. It provides the typical construction costs for torrefication plants.
“Torrefied Wood, A Bio-Energy Option That Is Ready to Go”: A Biomass Digest Special Report
Phillip
I had a buy order in at 0.008 all day also. 0 shares filled.
Yep. It seems like someone is painting this higher on Fridays before the weekends also. I wonder what their comission is to buy 1000 shares at 0.011. I don't quite understand this rationale.
The MACD cross is ohh so close from occurring. It's like watching it happen in slow motion.
Full STO looks like it has been below 20 for a while. Maybe if all the stars are aligned, we'll have the beginnings of a good Christmas run.