Agriterra Ld Share Discussion Threads

[the count of monte_cristo] 02/8/2013 20:13

hxxp://www.bernama.com.my/bernama/v7/wn/newsworld.php?id=967096

Mozambique's Macadamia Nuts Exported To China

MAPUTO, Mozambique, July 30 (Bernama) -- The Mozambican company Macs-In-Moz has exported its first crop of macadamia nuts to South Africa and China, reports Mozambican news agency, AIM.

Macs-In-Moz is based in Sussundenga district in the central province of Manica. It currently has two hundred hectares of macadamia trees.

According to the chief executive of Macs-In-Moz, Howard Blight, the first crop of nuts amounted to ten tonnes. The company exported six tonnes of nuts to South Africa and China, at an average price of US$4 per kilogramme.

The exports are in shell as Mozambique lacks any cracking facilities locally. However, there are plans for a facility for the 2015 crop.

Macs-In-Moz used the other four tonnes of nuts in its rapidly expanding nursery. In its first season, the nursery produced 110,000 young trees for planting. This year, the nursery's output could approach 300,000.

According to Blight, "the area is in a boom phase with many South African farmers securing leases to plant macadamia and avocado".

Blight speculates that within fifteen years Mozambique could become a major macadamia nut producer, based on favourable climatic conditions and rapidly improving infrastructure.

Macs-In-Moz is promoting a development model of 100-hectare orchards. These commercial hubs will provide management expertise to smaller community owned farms.

According to agronomist Philip Lee, "the establishment of a macadamia nut industry in Mozambique offers the country an ideal opportunity to participate in a high value export product with the potential to provide thousands of jobs that will include the development of the small-holder sector".

Mozambique currently has about a thousand hectares of macadamia orchards.

-- BERNAMA

[the count of monte_cristo] 25/7/2013 07:57

hxxp://africaoilcorp.mwnewsroom.com/press-releases/africa-oil-spuds-ekales-1-well-in-kenya-tsx-venture-aoi-20130724088826700

...Africa Oil CEO Keith Hill commented, "The Ekales prospect is probably one of the lowest risk prospects in our inventory. The proximity and similarity to the existing Ngamia and Twiga discoveries give us a high degree of confidence that we will find oil and continue to build the discovered resources necessary for commercial volume threshold. Our pace of exploration and appraisal continues to accelerate with the anticipated arrival of three additional rigs in Kenya and Ethiopia in the next 60 days for a total of six rigs, four of which will be operated by Tullow Oil." The recently announced Etuko discovery, on the flank of the Lokichar basis has opened a new play fairway and provided further confirmation of the world class potential of the Lokichar Basin."

In the South Omo block in Ethiopia, mobilization of the OGEC 75 rig to the Tultule location is underway. This prospect is located 4 kilometres from the Sabisa-1 well which was recently abandoned after proving the existence of the essential hydrocarbon elements of source, seal and reservoir in this frontier basin. It is being drilled on a well-defined horst block feature which should provide good trapping characteristics. The Company holds a 30% working interest in this prospect along with operator Tullow Oil Plc (50%) and Marathon Oil (20%).

The Etuko well in Block 10BB, where an oil discovery was recently announced in shallower reservoirs, has now reached a total depth 3100 metres and log and MDT evaluation have commenced. The rigs for the Ogaden Basin (Block 7&8) El Kuran-3 prospect in Ethiopia (Africa Oil non-operated working interest: 30%) and the Block 9 Bahasi prospect in Kenya (Africa Oil operated working interest: 50%) are in country and spud of El Kuran-3 is expected in August and Bahasi-1 in September. One additional lightweight rig has been contracted for testing and drilling operations in the Lokichar Basin and should also be operational in September.

[m1das_touch] 24/7/2013 16:07

Patience needed with this one, a share to tuck away and not think about too often! I expect ongoing volatility, but feel confident in the long-term potential here.

Just re-read the interims and was struck by the outlook statement, which may provide some encouragement to nervous holders as well as an important reminder that we're still in the 'investment stage' with this little company and that AGTA is a long-term prospect...

"Your Board is focussed on headline growth and margins of the Group. To reiterate, we are currently in the investment stage of our development and as a result focussed on establishing a strong foundation for scalability. Our investment programme is aimed at creating a vertically integrated agriculture business which when mature, will generate significant revenue and profits. Our strong cash position will allow us to fund our growth strategy without dilution which I believe marks us out amongst our peers. With the world's expanding population and evolving dietary needs, the rising African demand for meat and the long term pricing fundamentals for most commodities, Agriterra, with its multiple revenue streams, is well positioned for future growth."

[the count of monte_cristo] 23/7/2013 17:30

Closing price of 2.14p, gradually creeping back up.

[the count of monte_cristo] 22/7/2013 14:02

hxxp://news.sl/drwebsite/publish/article_200523268.shtml

ANOTHER GOOD NEWS: Sierra Leone Increases Food Production
Jul 19, 2013, 17:02

[riskybiznizz] 22/7/2013 08:34

Be VERY quick. Battered share price expected to rebound hard throughout this week...

19 July 2013
FRONTIER MINING LTD
(�Frontier5533; or �the Company�)
Publication of Expert Independent Report
Frontier Mining (AIM:FML), the AIM listed exploration, development and production company focused on Kazakhstan, announces the publication of an Independent Expert Report, by Wardell Armstrong International, entitled �Review and Preliminary Valuation of Baitimir Project Located within the Naimanjal License Territory NE Kazakhstan, dated 16 July 2013.�
Wardell Armstrong International (WAI) is an independent engineering and environmental Consultancy, which has provided the mineral industry with specialised geological, mining, and processing expertise since 1987. WAI was commissioned by Frontier to prepare a scoping report to include a preliminary financial evaluation, based on data provided by Frontier up to 25 December 2012, of the Baitimir project. The project is located within the Naimanjal license, and is comprised of the Baitimir, Yubileiny and Beschoku copper deposits.
This report documents the geological block preliminary modelling and mineral resource as at October 2012, and is a non JORC (2004) compliant desktop report.
The results of the financial modelling show that, when applying various discount rates between 8% and 20% the model produces Post Tax Net Present Values of US$17 million and US$67 million respectively based on income from the recovery of copper, silver, gold, magnetite and molybdenum. The internal rate of return (IRR) for the Baitemir and Beschoku projects are approximately 40% with a payback period outlined in the report of 2.73 years. Wardell Armstrong estimates that the cash operating costs over the life of mine are approximately US$10.01 per ton of oxide ore processed and US$19.79 per ton of sulphide ore.
DCF Model Results (Before Funding and Debt Service):
NPV@ Discount Rate
8%
USD$m
67
NPV(Base Case) @ Discount Rate
10%
USD$m
53
NPV @ Discount Rate
15%
USD$m
30
NPV@ Discount Rate
20%
USD$m
17
IRR
%
40%
The review and preliminary valuation support Frontier Mining�s view that Baitimir is an attractive project with robust economics. Frontier will keep all options open as to the optimal development strategy for the Baitimir whether that be from its own resources, through joint venture or through the sale of the project to a third party.
A full copy of the report can be found on Frontier�s website: www.frontiermining.com
Frontier Mining Ltd
Yerlan Minavar
[phone]
Libertas Capital (NOMAD)
Sandy Jamieson
[phone]
RFC Ambrian (Broker)
John Harrison
Richard Morrison
[phone]
Walbrook PR
Walbrook IR
Lianne Cawthorne (Media Enquiries)
Paul Cornelius (Investor Enquiries)
+44

[the count of monte_cristo] 20/7/2013 15:38

Mozambique: Signs of "White Smoke" in the Negotiations Between the Government and Renamo

hxxp://www.nation.co.ke/News/africa/Progress-welcomed-in-Mozambique-peace-talks/-/1066/1917260/-/3mhlx5/-/index.html

[the count of monte_cristo] 20/7/2013 00:44

Quick question is his price of $1400 per tonne correct, it is late and I may be wrong but I thought we were standing close to $2,400 per tonne currently?

hxxp://www.icco.org/statistics/cocoa-prices/daily-prices.html

[swooped] 19/7/2013 13:29

A nice write up also from niepomucen on iii, always good to hear the other side, your comments would be appreciated and interesting I'm sure

------------------------------

A few splashes of cold water:

- cash burn. Between January 2013 and the end of May the company managed to get through $10 million. Now of course this money was invested in something more durable than a plastic cricket set, and is very much showing up in the asset column of the bs, but still, "cash rich" is a passing phenomenon and one we shouldn't get to attached to. Unless South Omo strikes, and barring a change of stragegy, I reckon the cash will have gone within 2 years (admittedly, South Omo looks likely to deliver - which will mean $7million more after tax, NOT the $10m everyone keeps mentioning). When will profits take up the slack?

- South Sudan's compensation is being completely discounted in the share price and that's for a reason - noone can work out how on earth they can come up with the money. It's one thing raising enough for some stationery to send us a letter, but quite another to dig up 11million quid.

- Deca and Campaghri. I'm trying to work out if these - which generate 75% of the company's turnover - are anything more than charitable enterprises. When are they ever going to turn a profit? They've been around for long enough. I'm just not sure that the business model adds up - helicoptering cash across the country to pay peasants for a few bags of corn which might or might not be sold after a whole load of expensive processing and storage. Certainly, if the final results for 2012-2013 show that they failed to make at least $2m in PROFIT on such high turnover in a relatively strong market then I'll be very disappointed. In my calculations of the comapny's worth and few worth DECA and Compagrhi currently rate $0.

- In my op. there are two possible sources of huge riches, as things stand at present. The first, the Jewel of the Zambezi, if you will, is Mozbife. Under any fairly positive scenario (ie. excluding: civil war, foot-and-mouth, brand meltdown, cows not feeling horny enough etc) this company's future profits alone generate valuations multiple times what the whole of Agriterra is currently worth. The co has more than sufficient land, it has a compelling strategy and a market gap begging to be filled. In the past (2008 - 2010) they failed to live up to targets/expectations, but hey, they were learning how to be farmers. Now they know and there's nothing in the way apart from the Acts of God/rebels.

- I'm all in support of cocoa plantations but on the scale they're approaching it this'll never be more than a nice contribution to the company's overall performance (eg. 4000 hectares yielding 1300kg per hectare sold at $1400 per tonne = $7million gross), nice, but not megabucks given risks and the amount of time involved.

- The other potential "jewel" is in my op the 45,000 hectares they have leased in Sierra Leone. They haven't yet finally decided what to do with 'em, and the amount of cash needed to get that sort of landmass into production would be phenomenal, but at the same time it's the sort of scale that could make us rich. Just a pathetic $100 of profit from each hectare would be $4.5m of profit, justify a valuation of $45m on a pe of 10.

[the count of monte_cristo] 19/7/2013 13:02

Thanks swooped, I have read that document before. Good to see the price of Cocoa almost back to 2,400 US$

[swooped] 19/7/2013 11:45

Thanks CMC your comments are appreciated.

I found an article from June which has a nice write up, I guess it may have been posted here by now but thought I would share if it had not.

Specific though to your economic statement the article states;

Sierra Leone was the fastest growing country last year, according to the World Bank. Its economy experienced growth that is as rare today as Fancy Red diamonds. GDP increased a whopping 18 percent.

hxxp://moneymorning.com/2013/06/20/where-to-uncover-a-sweet-investment-in-africa/

[the count of monte_cristo] 19/7/2013 11:30

Good post Swooped, thanks for taking the time to complete this write up and to share it with us PIs on this bb, I for one appreciate it.

I guess the perceived political risk has caused the recent decline in the share price, personally I think it is overdone but I guess the market hates uncertainty, also the failure of Sudan to pay us the money on time and the uncertainty surrounding this have not helped.

However longer term, this looks like a potentially excellent play on Africa and Agriculture, Moz & Sierra Leone are two of the fastest growing African economies and indeed I think both may be in the top 10 fastest growing economies on THE planet. This is where I want exposure to, I accept this exposure comes with risk and volatility but I have done my dd and now have to wait for the returns, which I believe will come in time.

I think within a few years AGTA will be the largest cocoa producer in Sierra Leone and perhaps the largest Agri business in that country, as they now are in Moz. I however would like to see them enter another country such as Tanzania or Ethiopia.

[swooped] 19/7/2013 10:52

Why I will be buying heavily into Agriterra

• 146% increase in revenues from beef operations
• herd size increased by 49% and currently stands at 6,869 (2012: 4,601 head)
• Pedigree breeding herd by 118% to 1,525 head - capacity to expand to 4,300 head at Mavonde alone through dam irrigation
• 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
• Four new centre pivot irrigation systems currently being installed
• 61% increase in revenues from maize milling business
• 68% increase in maize milled
• 59% increase in maize sold
• Positive pricing environment for maize meal - achieved average price of US$432.96 per tonne (2012: US$413.80)
• 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
• 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

• revenues across the Group increased by over 50% during the year to US$20.8m.
• Trading at the first two units in Chimoio and Tete has been strong, with each generating approximately US$3,000 turnover per day
• A healthy cash balance of US$18.5m

• actively pursuing payment of compensation equating to approximately US$17.8m

Current Market cap = 1,216,818,478 (shares in issue) 0.02 (sp) £24,336,370

$17.8m compensation = 17.8 / 1.52 = £11,710,526 or 48% of current Market cap.

Now on the basis that as a company it revenue is increasing massively and we are at early statge plantation and growth, imagine what the figures will be like next year and if compensation comes in that alone will rocket the share price

Now bear in mind we are at an approximate 2 year low, possibly to be expected as we have been through a massive investment and consolidation phase but revenues increased this year alone by 50%.

My view is we are massively undervalued and I cannot find another company in this sector or indeed on aim where the potential to get in at the bottom on a fast expanding and revenue increasing business presents itself, I will be adding to my position.

GLA I think we have a peach here in an economically rising area of the world and happy to follow the growth of this company.

Comments welcomed

Swooped

[funtimejonny] 15/7/2013 19:04

Nowt wrong with takin a wee profit may. Think this may have further to go though. Im hangin in for the long game meself. Good news expected soon on residual oil interests and long term prospects for cocoa look very good as well.

[maytrees] 15/7/2013 14:41

Greetings Jimmy and all

jimmy12345 is probably right but I took profits today on a bird in the hand... basis.
Good luck to all holders

[jimmy12345] 14/7/2013 15:21

This was 6p then we got a load of cash for an old asset we might have got nothing for. Then it just kept dropping and dropping while the news on agri buisnesses progress got better and better.Selling now is plain stupid, uless your desperate for cash

[scruff1] 12/7/2013 20:13

swooped (762)
Good answer. Not been in too long. Interesting. Cheers.

[maytrees] 12/7/2013 16:45

Appear to be a spate of late buys. If so augurs well for next week.

[ged5] 11/7/2013 14:24

A video about Vale but shows a clip about agriculture in the region. Thought it might be of interest to some here.

[maytrees] 11/7/2013 13:10

swooped - lol

[swooped] 11/7/2013 12:24

Do you really want an answer to that question on a AGTA bulletin board....ADD, ADD, ADD, ADD, ADD, ADD,ADD, ADD, ADD,ADD, ADD, ADD,ADD, ADD, ADD,ADD, ADD, ADD.....no but really ADD seems a screaming buy to me

[maytrees] 11/7/2013 11:24

Sells now. To add now or not at c. 2p?

[swooped] 11/7/2013 08:31

Selling point is purely a factor of personal preference and greed, my point being is the sector that AGTA sit within is one of my safehavens, we're not an oil explorer where everything can fall on the drill bit, foodstuffs and acreage will always be required and on a technical basis the chart certainly bottomed recently. The overall trend has in fact been a very slight incline since Jan 2011 although I'm sure for some this may feel wrong and opposite to their portfolio position if they got in above todays prices. Personally we have IMO bottomed at the recent 1.65p mark and should now have a steady climb, the top of the current long term trend would predict 4.1p as a profit point however, if we broke this I would tend to hold and place this area as a stop loss.

[scruff1] 10/7/2013 21:27

swooped
Point being - for we who are in at sub 3p what is the selling point