Key comment from today's announcement is in the headline: "AHF Directors confirm that the Camperdown Dairy Park project is on track and on time with settlement of the land purchase scheduled for Thursday, 16 November 2017."
So, when was this first known?
For a price sensitive announcement, how does this correlate to the Chair's disclosure of no "black out" events applying in respect of recent purchases made.
Mind you, the original announcement dated from 19/12/16. For a then stated "modest" acquisition, it has taken 11+ months to get to now. Can't see however where the following was referenced in the July 11 strategy release:
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"As disclosed in the Strategy Overview released to ASX on 11 July 2017, Camperdown Dairy Park land is proposed to accommodate a significant new end to end processing factory which will received fresh raw milk in multiple segregated milk silos to ensure milk origin and can be traced back to the production farm and specialised milk such as Jersey, Free Range, Organic, Goat and Biodynamic milk can be managed. The separation ensures the integrity of the Camperdown Dairy ‘Own Brands’."
A word check shows up no reference to "Camperdown Dairy Park land" in that strategy release unless you are relying upon the words: "is aiming to establish the Lead Roles/Facilities", from p10 of the strategy release.
Then again, at the same page 10, the farm values were stated at ~$30M (reference to farms only not to farms + biological assets):
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"By extracting some or most of the approximately $30m of Farm Assets capital".
In today's announcement, they are now being stated at $28M in reference to both farms + biological assets (previously, it was farms, only):
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"This is planned to be funded by a combination of joint venture partnerships and a reorganisation of the Group’s approximately $28 million of assets allocated to direct farm and livestock ownership with a view to minimising dilution of existing securityholders."
In AR17, biological assets were valued at $5.43M (n9). The farms were valued at $19.46M (n11).
Farm segment assets were put at $29.7M at Jun17 (n24) as opposed to the above calculation of $24.89M.
The rest of the assets were valued at (n11):
* plant & equipment ($5.83M including a heavy proportion of CDC PQE assets ==> $3.83M at time of acquisition in Apr16 (n21); and
* leased PQE ($800K).
So, not certain whether Jul17 included both farms + biological, or just farms, and whether this now means something altogether different in Nov17.
Mind you, if one takes farms at $19.46M, biological @$5.43M, PQE @$2M (per n11), and leased PQE @$800K (ditto, n11), then you get to ~$27.7M which is quite close to today's $28M but only with the inclusion of PQE, and the biological assets. Conversely, if this is the new farm value (excluding the other items mentioned), then why hasn't there been a separate announcement concerning a material change in farm holding values? Given that there has been no other announcement made suggests that what is now being discussed is farm + equipment + biological assets whereas this wasn't what was being discussed back in Jul17 (where farms, that is, land, only was being referenced, not the whole kitchen and kaboodle as now seems to be the case).
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