G'day mate....just a quick one - the annual report suggests the...

First 5 Last

Share
Profile

Follow
R08

2,702 Posts.

151

03/10/16

20:29

Post #: 19591880
Share

Originally posted by MeToo ↑

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.

Expand

G'day mate....just a quick one - the annual report suggests the aggregate figure for the 5 farms in total to be $33m.

(I can see how you may be confused though considering in past Ann's the aggregate of the 5 farms was disclosed as being $50m and $48m respectively on separate occasions. Maybe they have been waiting for the land prices to drop....Lol, considerably it seems.)

PDF Price at posting: 2.9¢ Sentiment: Hold Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

LPE

Sales growth pushes Lovisa's fortunes (and shares) upwards

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

SIG

Dale Gillham's weekly wrap: Sigma-Chemist Warehouse merger creates pharma powerhouse

Week 47 Wrap: HotCopper users' most watched; Brent lifts on Putin's scary letter; RFK dents CSL

PYC

Scientific conference spotlights PYC's work on blindness disease treatment

DUI

Panic, paranoia, and gangland politics: HotCopper users react to Dubber's missing $26M

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

HotCopper Highlights: Your most watched stocks for Week 47, 2024

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

There are more pages in this discussion • 2 more messages in this thread...

First 5 Last

Add PDF (ASX) to my watchlist

G'day mate....just a quick one - the annual report suggests the...

Top Stories

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Sales growth pushes Lovisa's fortunes (and shares) upwards

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

Dale Gillham's weekly wrap: Sigma-Chemist Warehouse merger creates pharma powerhouse

Week 47 Wrap: HotCopper users' most watched; Brent lifts on Putin's scary letter; RFK dents CSL

Scientific conference spotlights PYC's work on blindness disease treatment

Panic, paranoia, and gangland politics: HotCopper users react to Dubber's missing $26M

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

HotCopper Highlights: Your most watched stocks for Week 47, 2024

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing