RE:Echelon Wealth - Buy - $1.00 target Just like McWhirter, Echelon blindly buys mgmt BS that co. will be able to sell its renewable diesel for $1.60/litre when traditional biodiesel is at $1.25/litre. Why the hell would a blender pay a 28% premium to use renewable diesel? The govt. mandated blending levels mean biodiesel works fine in winter conditions. Analyst should assume Cielo will not receive more than the biodiesel price.
"Cielo has sold small quantities of renewable diesel in the past, however, this sale marks the first commercial pre-sale of 60,000 litres. Cielo received $1.25/litre from the purchaser, which is much higher than the cost to produce the renewable diesel, including the pending projected costs to lower the sulphur content to meet the diesel industry’s spec."