BioNitrogen Holdings Corp. (BIONQ)

[Longgg]

The US imports the majority of the Urea consumed from the Eastern Hemisphere where natural gas prices are much higher, in fact the price of natural gas is so high the government often subsidizes the product. Will low US prices make US production cheaper, sure. Will that dramatically impact our company, I don’t think so. Way back when BION released the very first investor fact sheet I challenged this very concept, Adam told me the math was predicated on $10 natural gas price which was in fact low for the Eastern Hemisphere at the time.

I would suggest low natural gas price in fact is a competitive advantage, here is why:

1) BION has significantly more margin due to much lower cost (raw material feed stock as well as capital investment), if it gets into a bidding war we will prevail.

2) The plants are designed to produce Urea from either proprietary Bio materials -OR- natural gas, if the price ever gets cheaper to run gas then we simply flip the switch. Again our fixed overhead burden is so dramatically lower than traditional plants we will generate greater ROI.