BIOX Corp (TSX-BX) FQ3-2012 Update

Wed, 2012-08-15
Energy & Resources

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Title: Company Report: BIOX Corp (TSX-BX) FQ3-2012 update - OVERWEIGHT - Q3 results below estimates due to short-term industry-wide turbulence; fundamentals intact; revise target price downward but maintain Overweight

Synopsis: In FQ3-2012 (CQ2-2012—BIOX’s fiscal year-end is September), BIOX recorded revenues of C$10.1 million, which is slightly below our forecast of C$11.7 million due to the lower-than-expected RINless biodiesel sales volume. As a result of the lower sales volume and RIN inventory write-down, net loss before one-time and non-recurring items was C$3.0 million, which is below our forecasted net loss of C$1.5 million. The spread between B100 prices and feedstock costs (soybean and yellow-grease) have remained tight for FQ3-2012. We do, however, remain optimistic about BIOX and the biodiesel industry, as governments continue to support the biodiesel industry. We will likely revise our target price upon further development of the RIN program.

Report length: 7 pages (excluding legal disclaimer)

Miller Chu
Peter Fang, CFA