Agriterra Ld Share Discussion Threads

[peartreegardens] 26/9/2013 14:01

thanks Count

[multibagger] 26/9/2013 13:41

Thanks Count - much appreciated !

[oiht] 26/9/2013 10:21

Thanks for sharing Count.

[swooped] 25/9/2013 20:24

Count, brilliant update thanks for the effort involved

[the count of monte_cristo] 25/9/2013 11:01

SITIAIN - In regards your question; i would like to know who the maize business stands on its own too. This is Euan Kay as the country manager (see below).

Share price action yesterday is all par for the course, some profit taking after a bit of a rise. Personally it does not bother me (other than not looking as good in paper value) as its the long term, where the share price will be in 2,3 or 5 years that is of interest.



Euan Kay, Executive Director
Mr. Kay has extensive experience in the sub-Saharan agricultural sector, managing the Company's subsidiary DECA since inception in 2005. He is based in Mozambique full-time and oversees all operational activities at DECA, Compagri and Mozbife.

[opaldouglas] 25/9/2013 10:16

TCOMC - many thanks for updating us.

[sitiain] 25/9/2013 09:41

thank you for your time spent.
it is a strange share.
the involvement in agri funds seems the only short term thing
that will move the price.
but lets hope the numbers are good
i would like to know who the maize business stands on its own too.
very frustrating to see it hit down again afer some interest, clearly a big
over hang, probably a volume seller.

[the count of monte_cristo] 25/9/2013 08:28

Good Morning All - Please see the answers to our questions below. The reason they took so long to be answered was due to (as explained by Saint Brides Media) a combination of lots of different people, in different countries, holiday season and a newly appointed CFO. Enjoy the read over a coffee this morning.

Agriterra – Shareholder Q & A

Dear Directors,

Please find below, a list of questions created by a number of long term shareholders in AGTA, we would be very grateful if you could take a look at these questions, and where possible, provide answers to these questions. We appreciate that in some cases you may be restricted as to what you can say. Please note that the answers to these questions will be circulated on the ADVFN bb.

1) Are the directors considering using media, such as video interviews, to more regularly engage with both current shareholders and potential shareholders, plus to create more regular company presentations to keep investors appraised on developments? It would be nice to have a bit more visibility and communication from the directors.
a. The board are very cognisant of the importance of engaging with shareholders, however with the main operational team being permanently based in Mozambique and Sierra Leone, it can prove difficult to achieve this. Several of the management from both Mozambique and Sierra Leone are planning a trip to the UK before the end of the year and we will definitely try to organise presentations and video interviews to maximise their exposure.

2) Is the company considering off take agreements for the cocoa with major international clients and can they forward sell the cocoa to generate revenue?
a. This is definitely an area of interest for the Group and the Board are actively discussing various options in this regard.

3) Has the company considered working with the World Bank (IFC) or other African investors to expand its geographical reach?
a. The management have been discussing the possibility of working with the World Bank (IFC) and African investors in order to expand the Company's operations and will announce any material developments in this regard if/when they happen.

4) Is the company strategy still on target to expand into other countries and potentially other food commodities? If so would Nigeria, Tanzania & Ethiopia be among the top destinations for the expansion strategy?
a. The Company would be targeting countries with high local demand for agricultural products and favourable climatic, agricultural and political environments for the expansion of its operations. Tanzania, Ethiopia and Nigeria are all very interesting jurisdictions for Agriterra and would be considered for areas of expansion.

5) When can we expect the first beef exports to Saudi Arabia and the Middle East?
a. The Company is targeting the export of beef to Saudi Arabia and the Middle East in H1 2014 – further announcements regarding this will be made in due course

6) How many people are currently employed by AGTA? As a significant investor and job creator in the current countries we operate in shouldn't we be promoting this a bit more? Not only do we provide a valuable sustainable business but we also provide a critical logistical solution to remote farmers who may otherwise have no way to sell their products.
a. The management in Mozambique and Sierra Leone both work hard to promote their operations in-country, and have built solid relationships with many key decision makers in both local and national governments.

7) Looking at the shareholders list there are no major Agri funds on board, why do you think this is and do you think we may see some funds start to take more of an interest and shareholding in AGTA?
a. The Board speak to potential institutional investors regularly and believe that as Agriterra develops and moves towards profitability, this will attract more funds and institutions to invest in the Company.

8) If the share price is so undervalued, as has been reported by directors in recent Proactive interviews I believe, why aren't the directors/management using this as an opportunity to acquire shares in the open market?
a. The Board are constrained by various regulatory protocol as to when they can buy shares in the Company. At the moment, as the final audited results are due in the coming weeks, the Company is deemed to be in a close period however I will highlight your point to the Board for future reference.

9) How is the pursuing of the payment of compensation equating to approximately US$17.8mrecompense for the work undertaken and investment made by the Group on the Block Ba oil project in South Sudan, progressing?
a. The Board continue to actively pursue the compensation payment however they have not received an amended definitive date for issuance. Further announcements will be made in this regard when appropriate.

10) How is the development of the TFL infrastructure from Freetown to up-country Sierra Leone – 15 acre collateral management facility in Freetown and 2,000m2 site in Kenema, progressing?
a. The Kenema warehouse is now nearing completion and should be operational in November 2013. The Freetown facility is still in the early stages of development.

11) Looking at the management structure the directors have a diverse range of business interests, with the growth and development of AGTA how can the directors, specifically Phil Edmonds and Andrew Groves find the time to fully manager AGTA? Is this not a concern for shareholders in terms of focus on the business which must be a challenging full time occupation as it is, without taking into account the growth path ahead and any further expansion which may occur in other geographic areas?
a. Phil Edmonds and Andrew Groves have appointed highly experienced management teams in both Mozambique and Sierra Leone to lead the day-to-day operations, in addition to being supported by board members such as Euan Kay and senior management including TFL MD Adrian Simpson, to ensure the different divisions are running smoothly and expanding in line with expectations.

12) Why do you think the share price is currently sitting at 2.2p (as at Fri 9th August)? What catalysts are there in the short, medium and long term which may move the share price? What as shareholders do we have to look forward to for the remainder of the year?
a. There are numerous value catalysts to look forward to with Agriterra. In the short term, the retail business in Mozambique looks set to expand rapidly, which will drive increased revenues and higher margins for the Group. In the medium term, as the cocoa plantation begins production, this will significantly enhance revenues and margins and offer further expansion opportunities both in product range and geographic reach. Longer term, the beef division will reach the crucial critical mass required to slaughter animals at full capacity and thus generate much higher revenues for the Group.

13) In 2014 there will be elections in Moz, many commentators see further political instability between now and the elections, the recent instability resulted in RIO temporarily shutting down its mines in Moz and knocking share prices for all Moz focused companies (such as BHR and AGTA) do the directors have any views on the run up to the 2014 elections and the potential impact on the company?
a. Whilst it is very difficult to judge these situations with any kind of accuracy at this point, the personal view of the management in Mozambique is that there will be little change or interruption to day to day activities.

14) Are the directors disappointed that the market thought so little of the sale of S Omo to Marathon? And what is the CoS of receiving a further consideration from them for this asset?
a. The Board took the decision that as an agriculture company, it had a responsibility to dispose of its legacy oil assets in order to generate the maximum value for shareholders through the increased investment in its core operations. It could be seen that some investors believed that the big pay day for Agriterra would come when it resumed activities on its oil assets, however with the huge dilution that would come from participating in the exploration and development of these assets, the Board took the view that it would be prudent to crystallise the value of the assets now and focus on development of its revenue generating assets. All of the results from exploration at South Omo have been encouraging so the Board remains optimistic of receiving further consideration in due course.

15) What is happening with the Conakry port development?
a. With the rapid expansion of its beef and cocoa operations, the Board have decided to concentrate on bringing these to fruition in the near term rather than diverting resources to the Conakry port.

[sitiain] 24/9/2013 14:19

we do appear to have a hefty seller here.
the ownership on bloomberg is very old with only the last 70,000 being added by
US Global the biggest holder with 107,710,000 shares.
second biggest holder LIBRA have 52,729,574
they dropped 10.45 mio on their last update 9/13/2012.this shows they are down to 4.97 percent.
i think AIM rules is under 3.00 percent so no clues.
the board dont really have to worry about the share price too much i guess due to the fact they have money .
so.....
until the seller gets lifted we have to wait.
its a shame they dont go on a road show and get some support but i guess they are too busy running the business.
a bit frustarting but there you go.

[the count of monte_cristo] 24/9/2013 08:41

The other day someone asked about the 10,000 head of cattle figure and whether the company would stop at this, well just the Dombe ranch potentially can support 20,000 head, so I guess this shows the potential as well as the long term target. Plus of course we also have the Mavonde and the Irmaos ranches, so I guess the MC Peat note of a long term target of 30,000 head is probably fairly accurate;



...capable of supporting in excess of 20,000 head

[multibagger] 23/9/2013 18:08

Thanks for your good wishes eipgam which I reciprocate...seems unlikely for this Christmas but may be the next one ? Happy to be proved wrong :)

[eipgam] 23/9/2013 15:46

It would be nice if you made £25k profit in time for Christmas?

[multibagger] 23/9/2013 15:38

Picked up a little over 200k just now...500k bought by me today. I think this has a lot of potential...

[swooped] 23/9/2013 14:05

Bit of T/A on AGTA

[the count of monte_cristo] 23/9/2013 12:23

Thanks Swooped, will take a look at LEK but with oil shares I am only in one, which is GKP.

Good points SITIAIN, you have a nice holding with FRX. Out of all of my holdings, I personally believe MNC has the greatest potential for gains. AGTA is more of a slow burner.

[sitiain] 23/9/2013 12:01

count , i have frx for years pre list as i know them from other deals.
im kind of hot/cold about that one.
ive got 8 mio shares at 1.25, but ive had them for years and didnt sell when they were 4 pence,.
they , should with luck get somewhere.
i think they have spread themselves a little thin..........
but
they know more than me about running a business.
they desrve a break i guess.
i dont buy any off take agreement yet but with a license and a pfs
they might get something in the next 6 moths which is what they need.
my money is on them going back to the market however which is stopping it going over 2 pence.
i hope im worng

[swooped] 23/9/2013 11:55

Count, I consider myself lucky in that much of the faith I gained to buy into this share was of the back of guidance from your brilliant and unending research, same also for OBT, both now making me good money, thanks.

As a bit of a share back have you had a look at LEK, a very possible flyer, gone up a little already but still close to the original II's buyin price of 39p and the talk is off a major find also in a sidetrack they are currently conducting. Most seem to think 70p is the starting rating when news is announced, also nice to see the brilliant research from Zengas on the board

[swooped] 23/9/2013 11:36

44.34% up, not far to get the first bagger, brilliant share

[the count of monte_cristo] 23/9/2013 11:35

M1das - that was my thinking, hopefully an Agri fund or an African fund. Be interesting to see if we do get a shareholding update at somepoint.

I would have been buying more over the last few weeks but this is already my largest holding, will continue adding as and when funds permit though.

SITIAIN - early days yet, nice rise today but still very early days. This will get interesting for me when it is around the 10p level, will take time to get their though, IMHO.

P.S. If you have time worth doing some DD on two stocks, MNC (Copper) and FRX (IO and Manganese).

[freddie01] 23/9/2013 11:32

Breaking even now. Yippeee. Much more to come here over time.Many haven't woken up to this stocks potential yet.GL all.

[m1das_touch] 23/9/2013 11:31

All those automated trades have a feel of an institutional investor building a position.

[vyke82] 23/9/2013 11:29

Suddenly ppl realising the amazing value here

[m1das_touch] 23/9/2013 11:27

Oh hello, both of my African Agri stocks have woken up big time this morning! About time too...was so tempted to cut my losses here when it went below 2p, but finally the re-rating appears to be under way. Happy days!

[jimmy12345] 23/9/2013 11:24

Nice rise today!! Its been a long hold and time coming.