Ann: Annual Report to shareholders-AYB.AX, page-3

Agree with all you say...

Plus more...

For the first time I have read or can remember reading that there are conditional sales contracts in place on the 3 remaining farms, surely there must be an expiry date?

2 or 5 farms could very well be profitable in their own right, on paper when run by, say, a "family" It might be a bit different when those farms must carry a listed company with directors twiddling their thumbs, secretary and all the corporate baggage. $216K in directors fees last fin. year. ($150K for Duckett)

This company, for whatever reason has lost $3.543M over the last 2 fin. years = an average loss of $1.761M per annum. ($682K and $2.861M approx. and respectively)

With 2 farms how could this company even manage to put a reasonable dent in this type of loss?

The farm, corporate overheads and KMP costs for AYB will only increase if AYB get them! They talk about debt and equity funding for the first 2. Then they talk about predominately debt funding the first 2. They are talking about raising $15M (6000,000,000 shares @ $00.025 ea)

Assuming they debt fund all 5. Debt funding is one thing, but to service a total debt of $13m for 2 and $33m for all 5?

Interest only of say 10% = $1.3m and $3.3m respectively when averaged, adds an avg. of $650k approx. to each farms overheads. And from what I can make of it they are trying to finance the majority or all the purchase price with debt. So AYB could have zero or close to zero equity. The whole deal sounds just a little ambitious, but then under ICBC Capital they said they were trying to raise $50M to purchase and improve(?) the same 5 farms. Now they are only trying to raise up to $48,000,000.00 (CR and max. debt)

((Note - 10% pa interest is probably low if based on zero or near zero equity))

In my opinion Fiji is one out of the deslerate box.

I am sure someone will correct me if any of my opinions, figures or understanding of the annual financial report is wrong.


Anyone know if the new prospectus disclosure rules for capital raising that are showing up with miners trying new ventures apply in this sector? They are very comprehensive.