Australis Aquaculture (ASX: AAQ) is pleased to update the market on its significant progress in increasing sales and in diversifying its sources of supply:
Strong Sales Growth:
Fish sales for the December quarter are expected to be up 60% over the September quarter. Sales growth is due to increased fresh product availability from the Company’s Turners Falls facility and the commencement of sales of frozen product to US retailers.
Vietnam Joint Venture:
Final negotiations have now been completed between Australis and its Vietnamese production joint venture partner. The Company expects final legal documentation to be completed during the first half of January to be immediately followed by submissions to the government for approval. As previously articulated, the agreement provides Australis with access to seawater leases that the Company believes are sufficient to produce 10,000 TPA of barramundi.
US Production:
• Total production inventories, excluding hatchery stock, exceed 1.3 million fish. • Healthy numbers of fingerlings are in production at the Company’s US hatchery. • The Company believes that it remains on track to meet its 1,000 TPA sales target within the current quarter. Other Supply Creation Initiatives: • Exclusive relationships have been established with four Southeast Asian processing facilities. These relationships provide Australis with significant additional capacity to process and package sourced product to meet its requirements. • Supply of high quality, salt water barramundi is building steadily, with an increasing volume of product both in production and in transit to the US for distribution. • Proprietary quality assurance measures are continuing to identify and screen out third-party produced fish containing banned substances. The Company believes that its aggressive testing and quality management systems provide a unique level of assurance in which only the safest, highest quality product will reach its customers.
Australian Sustainability Award:
On November 30, Australis was named as a winner in the 7th Annual Australian Sustainability Awards, receiving the “Special Award for Environment”. The awards, which are sponsored by Ethical Investor Magazine, recognize excellence in Australian Stock Exchange listed companies across corporate sustainability factors. Australis was also a finalist in the Sustainable Small Business category. The Australian Sustainability Award adds to the growing recognition provided to Australis by environmental groups over the past twelve months.
AAQ Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
