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

[shasta]

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.

Must say after JAT's diversion into coal i kinda lost interest, the alternative energy sector is stagnant at present with the oil price making producers, refineries, petrol stations & customers all relatively happy, in the $US75 - 85/bbl range

I'll re-evaluate the alternative energy companies i follow, when the oil price is north of $US100/bbl

[snackpack]

A Chinese cornerstone shareholder has been announced. Headline as follows:

Mr Li Xipeng of China Infrastructure Investment Corp. commits to buy an initial 17.1 million Jatoil shares (13.04%)
· Commits to an extra $1.536 million if the proposed Blackrock coal purchase
proceeds
· Mr Li to buy first rights to invest directly in Jatoil’s Indonesian biofuel and coal
assets.

Mr Li bought in at 0.04c per share with the following quote:

Mr Li said: “I have been looking for an asset like Jatoil for some time. I like the Jatoil’s
focus on conventional energy for the present, with an equally important focus on
renewable energy for future generations. Both fit well with my investment and business
plans over the next decade.”
The funds raised from both transactions will be used by Jatoil for working capital as it
continues to operate its current projects and moves to expand its jatropha joint venture
with Waterland and the Blackrock coal projects."

I note due dilligence for the coal assets has not been completed yet.

[snackpack]

Thinking further, I wonder what the business interests are likely to be in regard to Chinese market access. For starters, there is Jartopha oil once production ramps up, sales of jatropha by-products (seed cake, I think it is called), crops that are grown concurrently with jatropha and coal if due diligence supports buying into the venture. I am unsure if there would be any transfer of cultivar technology to China. It could be another earning stream, as arguably, JATOIL is developing a wealth of cultivation data and plant technology.

But I note too that the company has a relatively small market cap, where it could just be bought out with multinational petty cash. Hopefully not at this stage.

[shasta]

Thinking further, I wonder what the business interests are likely to be in regard to Chinese market access. For starters, there is Jartopha oil once production ramps up, sales of jatropha by-products (seed cake, I think it is called), crops that are grown concurrently with jatropha and coal if due diligence supports buying into the venture. I am unsure if there would be any transfer of cultivar technology to China. It could be another earning stream, as arguably, JATOIL is developing a wealth of cultivation data and plant technology.

But I note too that the company has a relatively small market cap, where it could just be bought out with multinational petty cash. Hopefully not at this stage.

Far too small in size & scale to have any international company running the ruler over them, which is good, so long as they can keep raising capital.

I see some sense in the coal project, but it kinda conflicts with Mr Li's & his renewable energy focus!

Not sure where China could/would fit in, but Vietnam, Laos, Thailand etc gives JAT plenty of room to expand into

China is moving more towards nuclear energy, based on the sheer number of reactors they have planned

[snackpack]

I think the nukes are more for domestic power demand, where jatropha oil is good as a vehicle/aircraft fuel. The coal would have more industrial applications, but I don't know the grade they potentially have. I am puzzled too, but think that in general terms, the Chinese are long term strategic thinkers. Mr Li is probably positioning himself for when full production kicks-in in a few years. Like you I don't get the coal except as a short term cash generating vehicle and a method of generating shareholder value. I think they will spin it off or sell it when the jatropha enterprise stands on its own feet to get back to core principles.

[snackpack]

Jat announce that they have completed due diligence on Blackrocks coal resource. They estimate between 36.4 million tonnnes and 43.1 million tonnes of coal. More than 30 outcrops and several measured thicknesses greater than 6 metres. Jat will issue 25 million JAT shares to Blackrock after the 4 to 1 share split. Jat shares closed at 4.5c on over a million shares volume (9% gain). More Blackrock coal assets are to be tested and more detailed info coming in February according to the news release.

[snackpack]

JAT shot up 16% today to 5 cents; about 7/10th's of a cent rise on 500,000 shares traded. No news today so I wonder if it has something to do with people positioning themselves ahead of the 1 for 4 share consolidation coming soon?

Any ideas out there?

[snackpack]

JAT have released a huge amount of info regarding the coal mine buy as part of the Extraordinary AGM document. I haven't grasped the implications yet as it is a big read. Basically, name change to "Jatenergy", share consolidation, large coal bearing estate in a proven coal area, first production in 6-9 months at a small mine close to a port followed by mining a larger resource further inland in 2-3 years. The small mine will give early cashflow and has about 0.6mt of coal at a possible sale price of $97 per tonne. I did not note an estimate of mining costs per tonne, but I have only scanned the document thus far. JAT are portraying the coal as good quality thermal grade coal, though I need to learn more of the terminology to understand the calorific and impurity data.

[snackpack]

The JAT roller coaster is still running with a recent decline on news that the Blackrock coal project has not passed due diligence. The wording of the statement infers there may be trouble or at least a setback with the proposal. Latest news out states that they have sold 200 tonnes of Jatropha oil to the airline industry. Jatropha oil is gaining prominence with EU airlines actively seeking out stocks to meet new carbon reduction and sustainability requirements. Lufthansa has visited the company as part of their research.

[snackpack]

JAT is about to start trading energy commodities as a core part of the company business. Still mentioning coal for short term gains and securing project capital through asian markets. Quite high volume traded today.