Exhibit 2

DIAMOND CHEMICALS (A)

Frank Greystock's DCF Analysis of Merseyside Project
(Financial values in millions of British Pounds)

Assumptions
Annual Output (metric tons) 250,000 Discount rate 10.0% PRODUCT CANNIBALIZATION
Output Gain/Original Output 7.0% Depreciable Life (years) 15
Price/ton (pounds sterling) 541 Overhead/Investment 3.5%
Inflation Rate (prices and costs) 0.0% Salvage Value 0
Gross Margin (ex. Deprec.) 12.50% WIP Inventory/Cost of Goods 3.0%
Old Gross Margin 11.5% Months Downtime, Construction 1.5
Tax Rate 30.0% After-tax Scrap Proceeds 0
Investment Outlay (mill.) 9.00 Preliminary Engineering Costs 0.5
Energy Savings/Sales Yr. 1-5 1.25%
Yr. 6-10 0.8% 144.7175
Yr. 11-15 0.0%
33437.5
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Year Now 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
1. Estimate of Incremental Gross Profit
New Output (tons) 267,500 267,500 267,500 267,500 267,500 267,500 267,500 267,500 267,500 267,500 267,500 267,500 267,500 267,500 267,500
Lost Output--Construction (33,437.5)
New Sales (Millions) 126.63 149.06 153.53 158.14 162.88 167.77 172.80 177.98 183.32 188.82 194.49 200.32 206.33 212.52 218.90
New Gross Margin 13.8% 13.8% 13.8% 13.8% 13.8% 13.3% 13.3% 13.3% 13.3% 13.3% 12.5% 12.5% 12.5% 12.5% 12.5%
New Gross Profit 17.41 20.50 21.11 21.74 22.40 22.23 22.90 23.58 24.29 25.02 24.31 25.04 25.79 26.57 27.36

Old Output 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000
Old Sales 135.25 139.31 143.49 147.79 152.23 156.79 161.50 166.34 171.33 176.47 181.76 187.22 192.83 198.62 204.58
Old Gross Profit at 11.5% 15.55 16.02 16.50 17.00 17.51 18.03 18.57 19.13 19.70 20.29 20.90 21.53 22.18 22.84 23.53
Incremental Gross Profit 1.86 4.48 4.61 4.75 4.89 4.20 4.32 4.45 4.59 4.72 3.41 3.51 3.62 3.72 3.84
CANNIBALIZATION OF ROTTERDAM OUTPUT
LOST OUTPUT 17500.00 17500.00 17500.00 17500.00 17500.00 17500.00 17500.00 17500.00 17500.00 17500.00 17500.00 17500.00 17500.00 17500.00 17500.00
VALUE OF OUTPUT 9.47 9.75 10.04 10.35 10.66 10.98 11.30 11.64 11.99 12.35 12.72 13.11 13.50 13.90 14.32
GROSS MARGIN OF OUTPUT 1.09 1.12 1.16 1.19 1.23 1.26 1.30 1.34 1.38 1.42 1.46 1.51 1.55 1.60 1.65

INCREMENTAL GROSSS PROF 0.77 3.35 3.45 3.56 3.66 2.94 3.02 3.11 3.21 3.30 1.94 2.00 2.06 2.13 2.19

2. Estimate of Incremental Depreciation

New Depreciation 1.20 1.04 0.90 0.78 0.68 0.59 0.51 0.44 0.38 0.33 0.43 0.43 0.43 0.43 0.43
3. Overhead 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
DEPRECIATION ON TANK CARS 0.40 0.32
4. Prelim. Engineering Costs 0.00 SUNK COST WHICH IS IRREVERSIBL COST
5. Pretax Incremental Profit (EBI (0.43) 2.31 2.55 2.38 2.67 2.35 2.52 2.67 2.83 2.97 1.51 1.57 1.63 1.69 1.76
6. Tax Expense (0.13) 0.69 0.77 0.71 0.80 0.70 0.75 0.80 0.85 0.89 0.45 0.47 0.49 0.51 0.53

7. After-tax Profit (0.30) 1.62 1.79 1.66 1.87 1.64 1.76 1.87 1.98 2.08 1.06 1.10 1.14 1.19 1.23
8. Cash Flow Adjustments
Less Capital Expend (9.00)
Add back Depreciation 1.20 1.04 0.90 0.78 0.68 0.59 0.51 0.44 0.38 0.33 0.43 0.43 0.43 0.43 0.43
TANK CARS 0.40 0.32
Less Added WIP inventory 0.31 -0.47 0.00 0.00 -0.01 -0.03 -0.01 -0.01 -0.01 -0.01 -0.05 -0.01 -0.01 -0.01 -0.01
SAVINGS IN NWC AT ROTTERDAM 0.25 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01
After-tax Scrap Proceeds 0.00
8. Free Cash Flow (9.00) 1.46 2.19 2.69 2.85 2.87 2.21 2.27 2.32 2.36 2.42 1.45 1.53 1.58 1.62 1.66

NPV = 7.60 DISCOUNT RATE OF 10% 16.60 WITHOUT TO CASH OUTFLOW

IRR = 23.53% FISHERS EQUATION (1+NOMINAL INTERST RATE)=(1+REAL INREST RATE)/(1+ INFLATION RATE)
PAYBACK PERIOD= 3.93 1.10 = (1+REAL INREST RATE) / (1+0.03) 6.80%
REAL INTEREST RATE IS 6.8%
NPV DECISION RULE: ACCEPT PROJECT IN NPV>0 ACCEPT
IRR DECISION RULE: ACCEPT PROJECT IF IRR> DISCOUNT RATE, HERE IRR 23.5% IS > DISCOUNT RATE WHICH IS 10%
CUMULATIVE CASH FLOW (9.00) (7.54) (5.34) (2.65) 0.20 3.07 5.28 7.55 9.86 12.23 14.64 16.09 17.62 19.20 20.82
PAYBACK PERIOD IS BETWEEN 3 TO 4 YEARS
PAYBACK PERIOD DECISION RULE IS ACCEPT IF PB PERIOD < MIN ACCEPTABLE RECOVERY TIME

LIFE OF THE PLANT 15 YEARS

ANNUAL DEPRECIATION RAT6.67 FREE CASH FLOW
DOUBLE DECLINING 13.33 FROM YEARS 1 TO 10 EBIT
YEARS 11 TO 15 STRAIGHT LINE (TAXES)
ADD-DEPRECIATON
(CAPEX)
YEAR COST DEPRECIATION RATE AT 13.3% BOOK VALUE (INCREMENTAL NET WORKING CAPITAL)
0 9.00
1 7.80 1.20 7.80
2 6.76 1.04 6.76
3 5.86 0.90 5.86
4 5.08 0.78 5.08
5 4.40 0.68 4.40
6 3.81 0.59 3.81
7 3.31 0.51 3.31
8 2.86 0.44 2.86
9 2.48 0.38 2.48
10 2.15 0.33 2.15

11 2.15 0.43 1.72

12 1.72 0.43 1.29
13 1.29 0.43 0.86
14 0.86 0.43 0.43
15 0.43 0.43 0.00

DEPRECIATION OF TANK CARS

USEFUL LIFE 10 YEARS
DEPRECIATION RATE 10%
DOUBLE DECLINING METHO20% FOR YEARS 1 TO 8 PAGE 4 FOOT NOTE
STRAIGHT LINE FOR YEARS 9-10

YEARS COST DEPRECIATION BOOK VALUE

0 2
1 1.60 0.40 1.60
2 1.28 0.32 1.28
3 1.02 0.26 1.02
4 0.82 0.20 0.82
5 0.66 0.16 0.66
6 0.52 0.13 0.52
7 0.42 0.10 0.42
8 0.34 0.08 0.34
9 0.17 0.17 0.17
10 0.17 0.00

NET WOKING CAPITAL

CURRENT ASSET - CURRENT LIABILITY

CURRENT ASSET (CASH OUTFLOWS)

RECIEVABLES
CASH
INVENTORY

CURRENT LIABILITIES (CASH INFLOWS)

PAYABLES
SHORT TERM PROVISIONS
OUTSTANDING PAYMENTS

NET WORKING CAPIT 3% OF COST OF GOODS SOLD

COST OF GOOD SOLDSALES VALUE LESS GROSS PROFIT

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
SALES 126.63 149.06 153.53 158.14 162.88 167.77 172.80 177.98 183.32 188.82 194.49 200.32 206.33 212.52 218.90
GROSS PROFIT 17.41 20.50 21.11 21.74 22.40 22.23 22.90 23.58 24.29 25.02 24.31 25.04 25.79 26.57 27.36
COST OF GOOD SOLD 109.22 128.56 132.42 136.39 140.48 145.54 149.90 154.40 159.03 163.80 170.18 175.28 180.54 185.96 191.54
WORKING CAPITAL 3% OF COGS 3.28 3.86 3.97 4.09 4.21 4.37 4.50 4.63 4.77 4.91 5.11 5.26 5.42 5.58 5.75

CURRENT SALES 135.25 139.31 143.49 147.79 152.23 156.79 161.50 166.34 171.33 176.47 181.76 187.22 192.83 198.62 204.58
CURRENT GROSS PROFIT 15.55 16.02 16.50 17.00 17.51 18.03 18.57 19.13 19.70 20.29 20.90 21.53 22.18 22.84 23.53
CURRENT COGS 119.70 123.29 126.99 130.80 134.72 138.76 142.92 147.21 151.63 156.18 160.86 165.69 170.66 175.78 181.05
WORKING CAPITAL NOW 3% OF COGS 3.59 3.70 3.81 3.92 4.04 4.16 4.29 4.42 4.55 4.69 4.83 4.97 5.12 5.27 5.43

ADDITIONAL WORKING CAPITAL 0.31 (0.16) (0.16) (0.17) (0.17) (0.20) (0.21) (0.22) (0.22) (0.23) (0.28) (0.29) (0.30) (0.31) (0.31)
INCREMENTAL NWC 0.31 (0.47) (0.00) (0.00) (0.01) (0.03) (0.01) (0.01) (0.01) (0.01) (0.05) (0.01) (0.01) (0.01) (0.01)

ROTTERDAM LOST SALES 9.47 9.75 10.04 10.35 10.66 10.98 11.30 11.64 11.99 12.35 12.72 13.11 13.50 13.90 14.32
ROTTERDAM LOST PROFIT 1.09 1.12 1.16 1.19 1.23 1.26 1.30 1.34 1.38 1.42 1.46 1.51 1.55 1.60 1.65
ROTTARDAM COGS SAVINGS 8.38 8.63 8.89 9.16 9.43 9.71 10.00 10.30 10.61 10.93 11.26 11.60 11.95 12.30 12.67
WORKING CAPITAL SAVINGS AT 3% 0.25 0.26 0.27 0.27 0.28 0.29 0.30 0.31 0.32 0.33 0.34 0.35 0.36 0.37 0.38
INCREMENTAL NWC SAVING 0.25 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01