NDG's earnings are very sensitive to price of both recycled paper and containerboard. Fluctuations in these prices could lead to material changes in earings. With current net dept to equity close to 100%, the company relies on bank borrowwings to finance part of its working capital and capex. Should the banks unexpectedly withdraw their facilities, the company may encounter liquidity problems. In addition, the company's earnings growth is based on expansion plans. If the company is unable to obtain sufficient funding, the expansion may fall short of the company's target.