Update from Speculator:Fish farmer upgrades sales targets, plus...

Update from Speculator:
Fish farmer upgrades sales targets, plus profit in 2008-09

Impatient shareholders knocked 3c off the price of Australis Aquaculture (AAQ.AX


AUSTRALIS AQUA8 September,200808/09/2008 21:19 Sydney, Australia.
Price Change % Change
0.260 +0.010 +4%

Company overview
Real-time quote
AAQ.AX , 0.260, +0.010, +4%) last week to close at 25.5c after the company reported an entirely expected loss of $4.4 million loss for the year to June 30.

Despite a 28 percent lift in sales of barramundi to $5.975 million from its Turner Falls fish farm (90 minutes west of Boston, USA), the company’s loss was due funding the expansion of its fish stocks. Fish biomass in the latest year rose 262 percent from 106 to 278 metric tonnes, a level consistent with the company’s 1000 tonnes/year US output target.

Sales in the last quarter were running at an annualised rate of $8 million. For the current 2008-09 year, chairman Ian Mitten in early July had forecast sales of between $14-$20 million. Last week’s announcement upped that to between $16-$21 million with first sales from its fish farm development in Vietnam. Revenue is targeted to treble over the next three years with greater margins and lower costs expected from the Vietnam project.

As earlier reported, Australis was granted a licence in June to establish a barramundi hatchery, nursery and grow-out facility on a 205-hectare site in central Vietnam. This will eventually dwarf the American operation by ten times with a planned capacity of 10,000 tonnes/year of fresh and frozen barramundi. A capital raising is probable within six months to partially fund $6-$10 million of planned expansion and establish sufficient infrastructure in Vietnam to support an initial 3500 tonnes/year operation.

AAQ shares have halved in price this year, down from 50.5c to 25.5c, giving the company a market capitalization of $23 million. The Speculator is already invested and plans to hold for recovery and growth.

Recently appointed chairman Ian Mitten (previously the founding managing-director of Tasmanian salmon grower Tassel Ltd) and his board will be working hard to get the share price up with hopes of making a placement in coming months.