News blog
GEM Biofuels
- BY: Andrew Hore |
- POSTED: 16/04/2009 |
GEM Biofuels says that says that a company that was going to take more than half of its production of crude jatropha oil has gone into administration.
GEM intends to grow jatropha in Madagascar and Natural Fuel Ltd had agreed to take 55% of future production. The deal was signed in February 2008 and the oil was going to be delivered to NFL’s Singapore bio diesel facility.
The administrators are looking at options to restructure NFL. GEM will not start production until later in 2009 so this will have no short-term effect on the company. However, there is no guarantee that NFL can be successfully restructured.
GEM has planted 55,700 hectares of land and intends to increase this to 200,000 hectares. Mechanisation should cut operating costs by as much as 30%. GEM says that it has not been hampered by the civil unrest in Madagascar.
At 23.5p a share, GEM is valued at £6.49m. GEM raised £3.5m, or £2.7m after expenses, at 60p a share when it floated on 19 October 2007.
RAB Special Situations owns 53.8% of GEM.
GEM has switched its nominated adviser and broker from WH Ireland to Shore Capital.
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