Zenergy International Inc. (ZENG)

[Tadaaa]

Unprofitable Conclusions ??, here are the Assumptions:

To show how this facility would have performed in the past, the monthly profitability time-series is started in January, 2005. Although this facility would not have been in production at this time (built in 2007), it provides a perspective on how this facility would have performed historically.

Revenue, costs and net returns (profitability) are shown monthly per gallon of biodiesel and per 100 pounds of soybean oil. Also, biodiesel and soy oil price breakeven levels are computed.

Major assumptions and characteristics of the biodiesel plant model

1)  Turnkey biodiesel production facility
2)  Facility built in 2007
3)  Nameplate capacity of 30 million gallons
4)  Facility construction cost (including working capital) of $1.57 per gallon of nameplate capacity
5)  Lender finances 50 percent of the project
6)  Equity financing of 50 percent of the project.
7)  Plant operates at 100 percent of nameplate capacity
8)  Conversion factor of 7.55 pounds of soybean oil per gallon of biodiesel
9)  A gallon of biodiesel produces .9 pounds of glycerine.
10) Natural gas requirement of 7 cubic feet per gallon of biodiesel
11) Typical input costs for an Iowa soybean oil biodiesel facility

The monthly profitability of this hypothetical plant is computed by using the monthly market prices for biodiesel, soybean oil, methanol and natural gas. Each month the analysis is updated with the previous month’s prices. If any of these price data series do not fit your situation, you can enter an adjustment factor that will increase or decrease the coefficients in the price data series. All other variables are held constant throughout the analysis.

Input coefficient adjustment. Although we believe the coefficients in this model are a good representation of a soybean oil biodiesel plant, the user has the ability to change any of the input coefficients in the economic model to fit a special situation. A change in an input coefficient will be reflected in the analysis tables and graphs.