TIDMAGTA
RNS Number : 7175G
Agriterra Ltd
11 June 2013
Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector:
Agriculture
11 June 2013
Agriterra Ltd ('Agriterra' or the 'Group')
Operations Update
Agriterra Ltd, the AIM listed pan-African agricultural group, is
pleased to announce an operations update for the year ended 31 May
2013 across its cattle ranching and maize farming/milling
facilities in Mozambique and its cocoa trading operations in Sierra
Leone.
Mozbife: Cattle Ranching, Mozambique
-- 146% increase in revenues from beef operations to US$2.2m (2012: US$0.9m)
-- Successful expansion of cattle operations - herd size
increased by 49% and currently stands at 6,869 (2012: 4,601
head)
-- Pedigree breeding herd at Mavonde Stud Ranch and Vanduzi
expanded by 118% to 1,525 head - capacity to expand to 4,300 head
at Mavonde alone through dam irrigation
-- Achieved average dress out weights of 215kg and average wholesale price of US$4.40/kg
-- 2,145 animals slaughtered including 1,497 head processed at
the Mozbife abattoir (2012: 1,076 head)
-- Achieving average value of US$117 per carcass from "fifth
quarter" (the skin, offal, hooves and head)
-- Two beef retail units now operating in Chimoio and Tete -
four further units planned for commissioning by Q4 2013
-- Strong trading achieved at retail units - averaging daily
sales of US$3,200 and US$2,800 at Chimoio and Tete respectively
-- Fencing, bush clearing and borehole drilling projects at both
Dombe and the new Irmaos Ranch continue
-- Four new centre pivot irrigation systems currently being
installed at Mavonde Stud Ranch and Vanduzi farm to increase
irrigated pasture potential
DECA & Compagri: Maize Milling and Farming, Mozambique
-- 61% increase in revenues from maize milling business to
US$15.6m (2012: US$9.7m) - record turnover for DECA and Compagri
facilities
-- 68% increase in maize milled to a total of 46,600 tonnes at
DECA and Compagri (2012: 27,690 tonnes)
-- 59% increase in maize sold to a total of 34,500 tonnes at
DECA and Compagri (2012: 21,717 tonnes)
-- 4 percentage point decrease in grain milling yield to 74% due
to adverse weather conditions (2012: 78%)
Positive pricing environment for maize meal - achieved average
price of US$432.96 per tonne (2012: US$413.80)
Tropical Farms: Cocoa Trading & Plantation, Sierra Leone
-- Expansion into cocoa plantation development to facilitate
commercial large scale cocoa production
-- 1,600 hectares of land acquired to date for plantation
development - additional 3,150 under negotiation
-- 200 hectares cleared to date and 250,000 seedlings due to be planted by August 2013
-- Investment in infrastructure including the construction of a
2,000m(2) processing facility in Kenema and a larger collateral
management warehousing facility in Freetown linking up-country
cocoa growing and buying infrastructure with the export markets
-- Small harvest in Sierra Leone impacted on cocoa and coffee
trading business - sold 1,200 tonnes of cocoa (2012: 1,250)
-- 12% decrease in revenues from cocoa trading to US$2.9m (2012: US$3.25m)
Agriterra Director Andrew Groves said, "This has been a
transformational year for Agriterra, where a combination of growth
and investment has enabled our beef business to start generating
material revenues for the Group. Together with record trading from
our grain business, I am delighted to report that revenues across
the Group increased by over 50% during the year to US$20.8m.
"Growth and investment remain our key focus over the coming year
and beyond, with the expansion of our chain of beef retail units
being a critical objective. Trading at the first two units in
Chimoio and Tete has been strong, with each generating
approximately US$3,000 turnover per day. With this in mind, the
expansion of this high margin business remains extremely important
to the Group.
"Investment will also be crucial to our cocoa operations in
Sierra Leone, where our team are making excellent progress in
establishing a commercial large scale cocoa plantation together
with the necessary infrastructure to provide access to export
markets. Whilst a disappointing harvest impacted on cocoa and
coffee revenues this season, the development of our own plantation
provides additional security of supply in the years to come; a
highly important consideration when negotiating long term sales
agreements with confectionary companies.
"Agriterra remains in the enviable position of being able to
support this rapid growth through the deployment of its own
treasury. We currently have a healthy cash balance of US$18.5m and
are actively pursuing payment of compensation equating to
approximately US$17.8m, in partial recompense for the work
undertaken and investment made by the Group on the Block Ba oil
project in South Sudan, as referred to in previous announcements.
Further updates regarding these proceedings will be made in due
course."
** ENDS **
For further information please visit www.agriterra-ltd.com or
contact:
Andrew Groves Agriterra Ltd Tel: +44 (0) 20 7408
9200
David Foreman Cantor Fitzgerald Europe Tel: +44 (0) 20 7894
7000
Rick Thompson Cantor Fitzgerald Europe Tel: +44 (0) 20 7894
7000
Andy Cuthill MC Peat & Co LLP Tel: +44 (0) 20 7104
2332
Susie Geliher St Brides Media & Finance Tel: +44 (0) 20 7236
Ltd 1177
Notes
Agriterra Ltd is an AIM listed agricultural company with five
divisions: beef, maize, cocoa, fruit and palm oil. Its cattle
ranching business, Mozbife, has a herd in excess of 6,500 head, a
land holding of over 21,000 hectares, a feedlot, a 4,000 head per
month capacity abattoir and retail units. In addition to selling
meat from its own herds, throughput for the feedlot and abattoir is
supplemented with cattle bought in from local communities. The
Company also owns a proximal banana plantation and macadamia
orchard.
The Company's maize buying and milling operations, DECA and
Compagri, are located in Chimoio and Tete in central and
north-western Mozambique respectively. These collect maize from
circa 350,000 farmers using the Company's own vehicle fleet,
process it into maize meal, the African staple, and then sell it
back to the local market, into supermarkets and to the World Food
Programme.
Agriterra's cocoa business is based in Sierra Leone, through its
100% subsidiary Tropical Farms Limited, which includes buying,
trading and production operations. The Company holds over 1,200
hectares of land for cocoa cultivation and also has a strong buying
register with three main hub stores, 41 satellite stores and a
direct buying register of more than 3,500 farmers across the
country. Its strategy is to establish itself as a secure,
sustainable and traceable source of supply to meet the requirements
of the major cocoa consumers who are placing increased emphasis in
this area.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCFMMFTMBIBBIJ
Agriterra Ld (LSE:AGTA)
Historical Stock Chart
From May 2024 to Jun 2024
Agriterra Ld (LSE:AGTA)
Historical Stock Chart
From Jun 2023 to Jun 2024