|horrific / disparate / wild / wasted tens of $millions / slash costs / going bust / little too late / do any worse. I take it your not going to buy in, bluebadger !.
Agta were cash rich and they spent the money on a broad set of assets in various contries to spread the risk. Unlucky for them that EBOLA hits Sierra Leone and Mozambique is experiencing military tension that as forced them to scale back and re-ajust. Unlucky rather than bad judgement from the bod.
All that and more is priced into the share price and they have money in the bank so on a risk reward basis i bought back in. No good for trader's (thankfully) but a stock that may surprise in the future ! or not as the case may be.
You pay's your money and take's your chance's.
|Another horrific set of results.
AGTA purchased too many disparate assets and invested too much of its cash in wild ideas without any of them proving themselves. It's wasted tens of $millions.
Finally the management realises that it must slash costs to prevent going bust. It may be to little too late. At least some of the management has changed - the new lot can't possibly do any worse. Unfortunately, there's still no sign of AGTA becoming a profitable business.|
|Agriterra narrows loss despite beef difficulties
African agricultural company Agriterra announced its audited final results for the year to 31 May on Friday, with a group loss for the year from continuing operations - which excludes the results of the discontinued cocoa operations - of $7.68m, down from $8.21m.
The AIM-traded firm said excluding non-recurring impairments recorded against property, plant and equipment in the Beef division of $3.07m, the loss decreased by 44% to $4.61m.
It said the decrease in loss reflected both an increase in gross profit of $1.25m, primarily in the Grain division, combined with a decrease in other operating expenses of $2.22m, primarily in the Grain division and central corporate overheads.
Overall, the operating profit of the grain division was $0.81m compared to an operating loss of $2.13m in FY2015, while the operating loss of the Beef division, excluding impairments of property, plant and equipment increased to $2.91m from $2.32m.
“The African agriculture market remains an area of growth potential, with Mozambique having particularly strong prospects because of the eagerly anticipated establishment of a liquefied natural gas industry in the north of the country,” said chair Caroline Havers on the firm’s outlook.
“As and when this industry gains significant development and production traction in Mozambique, it is expected to significantly change the economy of the entire country, which will translate into consequential growth in our revenue potential.”|
|Africa focused agribusiness sells off planes and helicopters to step up its feed activities
By Jane Byrne, 04-Aug-2016
Cattle ranching, grain and cocoa agribusiness group, Agriterra, has disposed of some of its aviation assets to fund a feed venture in Mozambique.
Bit more detail in the link above.|
|beggars belief that they had three private aircraft , but at least common sense has prevailed and they are sold for c£400K net . That's 25% of the whole market cap...hence the small share spike. Will also reduce operating costs by hundreds of thousands.
Liquidation of the herd will generate several million in cash by the look of the last accounts and leave a profitable feedlot and a profitable retail operation . If they could sell or rent the land they own , there is value of a multiple of the current share price .
A big IF , but they seem to understand there is asset value there and which should be being released back to shareholders.|
|I agree Paul, let the beef side tick over for now with local cattle owners taking the ownership risk and use some of the glut of cash to advance either:
a) cocoa assets. 90% of worldwide production is from family owner 2-5 hectares therefore providing a real opportunity to consolidate
b) palm oil assets on Dekeloil business model (build the mill & use local hectares to make up the production whilst yours is growing to maturity)|
|I don't hold AGTA although I did a few months back.
The news yesterday is obviously disappointing for holders and worse for those who live in the area.
However though perhaps the mms marking the bid share price down hugely to 0.16p is understandable given the tensions in the area for the AGTA cattle business, their keeping the offer share price up at level which creates a c. 43% difference between bid and offer seems (to me) appalling.
Given the reasons for the mark down surely any PI who would still wish to buy would be taking a risk so what is the point of the 43% difference? Is the 43% difference intended to deter buyers or is it to give mms extra profit if a PI buys and the local tensions subside?|
|maybe its time to accelerate the cocoa contract|
paul the octopus
|so what would you call then if the cattle disappeared instead? better to sell the beef, cut the running costs, cut the financing cost or pay the debt while keeping the land.cattle everywhere, specially on AIM ranch.rns had it so clear."the Company has begun destocking its cattle in order to safeguard and crystallise its considerable livestock capital."|
paul the octopus
|Sensible yes. But the timescale for any reasonable returns has just disappeared over the horizon and away|
|More like a sensible decision given the circumstances.|
paul the octopus
|Typical African investment. It makes no sense sadly to invest in countries where either corruption or conflict prevail. A very bleak outlook indeed. What the solution is I am not sure, probably better education, it's not money though.|
|Game Over !|
|here is the Mrs http://www.cedr.com/solve/profiles/?p=carolinehavers|
paul the octopus
|New director - I am back in with a few at 0.25p.
Level 2 did not look quite so weak at current share price though far more importantly
despite ISIL and other thugs in Africa, that continent's farming and business has to improve.|
|AGTA is now down more than 90% since I joined. I expect it'll go all the way to £0, the way the management is burning its way through their remaining cash.|
|Agriterra Warns Of Possible Hit From Growing Mozambique Problems
LONDON (Alliance News) - Agriterra Ltd on Thursday said the political situation in Mozambique has continued to deteriorate in 2016, and while its operations have not been affected so far, there is a possibility the problems will have an impact in the future.
In Mozambique, the country has been plunged into chaos amid ongoing clashes between the government led by the Mozambique Liberation Front, or Frelimo, and the Mozambique National Resistance, or Renamo, a guerilla group.
This situation has continued to deteriorate in 2016 and local Renamo militias have become entrenched in rural areas such as the Tete and Manica provinces, where Agriterra has a number of its operations.
Agriterra runs maize and beef agriculture operations in Mozambique and cocoa operations in Sierra Leone.
The Renamo militia presence in Tete and Manica present a major risk of ongoing attacks on vehicles on the main truck roads in the region, despite efforts by authorities to broker a solution to the problem, it looks possible the conflict will continue, Agriterra said.
To date, Agriterra said it has not suffered any economic loss from the problems, but it is possible its operations will be disrupted in the future, particularly its maize purchasing operations which reach into the Manica, Sofala and Tete provinces. Movements of its beef products also could be affected.
In addition to the conflict, Mozambique is suffering currency devaluation. Since May 2015, the Mozambique metical has depreciated 50% against the dollar and 20% against the South African rand. This has had a major impact on the purchasing power of the local population, Agriterra said, though its grain operations have benefited from lower production costs.
However, the metical is set to fall further as it faces pressure from reports of alleged undisclosed government guaranteed borrowings of over USD1.1 billion, around 10% of the country's gross domestic product.
Due to the undisclosed borrowing, the International Monetary Fund has suspended additional emergency lending amounting to around USD155.0 million for Mozambique and has suspended any policy support programmes.
As a result, local currency markets will suffer further, and the value of the metical is drifting lower, which may hit sales for Agriterra's grain and beef divisions and which will increase the cost of imported supplies, hitting margins.
Agriterra said it has started the new season buying campaign for its grain operations and has agreed a USD5.5 million loan with its lender to support working capital needs for the division.
For the beef arm, sales have fallen due to the struggling natural resources sector in Mozambique, particularly on wholesale contracts.
Agriterra shares were down 6.2% to 0.272 pence.
By Sam Unsted; firstname.lastname@example.org; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.|
|My track record with African focused companies is as follows
Lonrho - LOST (when taken out)
Zambeef - LOST
Agriterrra - LOST
Cambria Africa - formaly Lonzim - Loosing but forever hopefull
I will not be buying into the African dream again, although i still beleave, long term and if you had lots of money to spread around, you would pick a multi bagger at some point. Sadly i do not and will not !.|
|That would be because I have shares in this one.|
|Plenty of aim companies in Africa yet this is the only one that I know of that crashes the share price everytime something bad happens there!|
|Well, I did have these on the back burner, but I've turned the hob completely off now. No wonder no-one invests in Africa!!|
|Said that the response would be political. Just have to wait and see.|
|I suspect it may have something to do with this: