long term contract for aaq - 300tpa achieved, page-14

To give some idea, of prices etc. the farm gate price for barramundi in Australia is $9-10 kilo. Now most Australian barra farmers sell into the domestic market because they can't get much more than the domestic price if they sold to the US. Lets say that taking into account they sell at average of $12-13 aus per kilo(because they will get about $15 for live fish). If they sell 300 tonnes ,if, because lets not forget that the entire US currently only consumes 200 ton of Aussie barra. They will have to do a whole heap of marketing to get that much extra barra sold, and I bet that will mean cost cuts to tempt new consumers.
so 300 000 @ $12 = $ 3600 000.
Now the average break even cost in australian operations is approx $6-7 kilo of fish.
so 300 000 @ 6= 1 800 000
Thats a very rough profit of $ 1 800 000 at the very most.
If you take a couple of dollars from the sale price and add on a couple of dollars to costs, profit is gone.
I personally don't hold AAQ, but I would purchase at a price down near IOP.
Aquaculture is a growing business(pardon the pun) but excluding the very profitable Southern BlueFin Tuna and Pearl operations it will not make you wealthy.
As soon as Australian aquaculturists find a market cheap asian producers flood the market.
So my final observation is that it's way overpriced.