March 12, 2007 – High Level Feasibility Report
Winfield Resources Limited (TSX VENTURE; WWF-News) announced today that it is in receipt of TDI Technology’s FEASIBILITY Report for a proposed new integrated ethanol-feedlot facility to be located near High Level, Alberta.
Vancouver, British Columbia - The highlights of the High Level Ethanol Report are as follows:
Financial: The study demonstrates through financial modeling that an Ethanol manufacturing integrated feedlot business can generate very strong financial returns. The average 5 year annual revenue will be $25 million and the earnings before interest, taxes, depreciation and amortization (EBITDA) are $8 million or 33% based upon 90% debt financing. The capital cost is $27 million with the ethanol plant costing $23 million, the feedmill of $2.4 million and power plant at $1.5 million.
Strategic: The ethanol market penetration with oil industry and the Governments of Canada and the United States have political determinations have assured the market for Ethanol, to be sure, is here to stay. There is a strong history of rising ethanol prices and rising demand in all areas of North America. Current projections for the netback on ethanol sales is $0.72 per litre. The successful Pound-Maker AgVentures business model integrating ethanol and cattle feedlot is a proven and sustainable commercial business with Pound-Maker having withstood $0.32 ethanol, withdrawn government tax rebate, buyout of Husky Energy and Saskatchewan Wheat Pool shareholdings and then the Canadian cattle BSE infection and the US border closing hit. The High Level region selected for this company operation is a strong agricultural area with many natural agronomic, geographic, climatic and infrastructure benefits accruing to the business. The raw product prices will be the lowest in Western Cnanada. Rail and Highway systems are both available. The area is noted for natural sun, soils and moisture cellulose production, both feed stocks of this company.
The report has been forwarded to qualified lenders and we await their comments.
