JATalert ..... astrostuff update ... :)

[shasta]

JAT - Focus on Indonesia after strategic review

http://www.stocknessmonster.com/news...E=ASX&N=607065

JAT's 46% owned Vietnam project will be written down to $0, showing a $2.5m impairment

JAT will now focus on Jatropha biofuel & Coal projects in Indonesia

JAT - To commence regular biofuel output after new plantation purchase

http://www.stocknessmonster.com/news...E=ASX&N=608605

Fantastic that they are now in production & will give the market weekly updates

JAT should re-rate accordingly

Disc: Nil

[snackpack]

Excellent news. Still a long road to hoe, but regular income is certainly a bright spot.

[upside_umop]

Shasta, any idea if this will be cashflow positive?

Jatropha sounds good and all, but aren't economies of scale pretty key?

Also, what benchmark does Jatoil usually sell at?

[shasta]

Shasta, any idea if this will be cashflow positive?

Jatropha sounds good and all, but aren't economies of scale pretty key?

Also, what benchmark does Jatoil usually sell at?

Good questions UU

Size & scale is certainly an issue, but having PT Waterland onboard is helping them increase there size, & focus in Indonesia

As for cashflow positive will have to wait for the quarterly, im guessing this quarterly will be negative, but they do have sufficient funds

[snackpack]

latest newsletter states that JAT are still undertaking due diligence on the coal mine merger, and are happy after a site visit. The idea is that the coal mine will provide significant cash to further the Jatropha plantations. Interestingly, crude oil only provides 25% of profit where other inter-crops are likely to add profit, such as natural sweetener plants. Making fertiliser and other by-products will also help diversify the product list. They are developing a Jatropha variety that will produce 25% more oil, soJAT are heavy into R&D which is good.

[COLIN]

Weren't Air New Zealand trialling jatropha in their jets? I don't think we have heard much, if anything, about that lately. Hope it wasn't the oil that Qantas found on their 380's, the "oil where it shouldn't be!"

[upside_umop]

Weren't Air New Zealand trialling jatropha in their jets? I don't think we have heard much, if anything, about that lately. Hope it wasn't the oil that Qantas found on their 380's, the "oil where it shouldn't be!"

I thought it was Algae from some ponds up in Marlborough way. Potentially doing both.

I like to keep an eye on these sort of stocks, but none have caught my fancy with any real sound economics. Will JAT actually be cashflow positive anytime soon from Jatropha tree operations? I haven't seen any presentation/informatioin yet that shows they will.

[snackpack]

I understand JAT to be in the initial development stage. Until the do the mass planting and the trees mature the yield will be relatively low. Thrown into the mix id development and improvement of varieties of Jatropha plants. Arguably, these new strains need to be identified, cross pollinated, oil output quantified after maturation (3-4 years or so) and planted en-masse until they mature. As an interim, they are investigating cash crops that can be grown concurrently with Jatropha. The coal merger is another method of gaining quick cash to fund further plant development, land acquisition and planting processes.

None of this will happen anytime soon, other than potentially selling coal in 9 months or so.

[COLIN]

I became most wary of investing in alternative energy projects after getting burnt 2/3 years ago with outfits like VIR, PAX, IFG and WHN. There may be the odd exception around, but my advice would be to tread very carefully, unless of course you wish to invest for high-minded reasons other than to preserve/enhance your capital.

[snackpack]

JAT have a recent interview on boardroom radio. Basically summing up the latest report, explaining the coal mine concept (short term high cash flow, get some traction in the share price, provide funds for more jatropha planting) and making positive statements about progress o the jatropha front.