Comments on CEO Interview

It seems that Domacom's CEO statements regarding the Bio Hub are at odds with those of Casino's Richmond Valley Council (RVC).

According to RVC's minutes of the Council meeting on the 15th August 2017, Council have approved their Officers to enter into negotiations with Utilitas to lease for 30 years Council land adjacent to the Casino sewage treatment plant.
Not as we have been advised by Domacom who would purchase land and lease to Utilitas for 5 0r 10 years.

The deal as outlined by Council seems to be to pump biogas to Utilitas on adjacent Council land and in turn for Utilitas to supply electricity to the sewerage treatment plant. In addition council intend to negotiate with Utilitas processing of some green bin garden and food waste as further fuel stock.

As a observation this proposal is currently being pitched on a gross return of $350,000 per annum before taking into account any costs. I am skeptical that the additional headline 15 -20% per annum growth flowing from the development phase will materialize for investors.

There seems to be no information currently provided about Domacom's liabilities or impacts of environmental bonds, the impairment of assets due to remediation costs, depreciation of Domacom's plant and Equipment over its economic life and the fundamental risk of timing gap mismatch over the 30 year proposal to lease Council land to Utilitas.

It would seem that Domacom's CEO should provide even a basic feasibility study to demonstrate the viability of this project. Advising shareholders and sub fund investors on some thing as simple as how many Megawatts of electricity this plant is targeted to produce would be better than providing us with a glossy tourist brochure on the population of Casino and distance to the nearest airport.

As an aside I noted that Utilitas 25% listed shareholder - Australia China Holdings AAK was recently delisted from the ASX.