Agriterra Ld Share Discussion Threads

[frenchie01680] 18/4/2013 17:44

I'm not worried about today's share issue, about £50K no? Rather I like less the RNS of 11th about increased planting of cocoa seedlings. I couldn't find (with Google) the time needed to go from seedling to picking cocoa but as cocoa is a tree that flowers by cauliflory (flowers come through the bark), I would imagine that we are talking many (10+ ????) years. A lot of upfront expenses (land purchase, clearing, seedling growing, planting, care and upkeep) before a penny arrives back.

The market at present does not seem to like long term and especially not from a minnow like AGTA. If the company would only give us some figures to mull over people might be less pessimistic. just how much are all these deals costing? millions? hundred K? Also it would be good to know the percentage of expenditure that is targeting short term realised profit and the longer term stuff. What are the percentage exoenditures on maize, on cattle and on cocoa. If 45, 45, 10%, fine but if those figures are the other way round, there may be too much jam in the future for the market to stomach. Just a thought.

[jimmy12345] 18/4/2013 17:10

Well that was a nasty day

[the count of monte_cristo] 18/4/2013 11:23

Ged5 - very much doubt that any cash will be returned to shareholders, I would say, zero % chance. This cash is our building block for the next 2 years.

jimmy - yeah anyway only 2.1m shares issued! A drop in the water.

Personally I want the share price to stay low all summer so that I can build my holding for a long term investment.

[jimmy12345] 18/4/2013 11:03

The shares were agreed before we recieved our marathon cash, this is actually good buisness, i prefer a dillution like this to buy a hard asset, its not like the money is needed for operation costs. On the skinny cattle, these type of cattle are naturally like this, there not starved or under sized. The reason we are building the herd ourselves instead of just buying in is we can breed a strong healthy herd, with good meat attributes, these guys know what there doing, which is why its a slow progress, no instant results here, or anywhere for that matter, makes a big diffrence on quality of animal and hence price recieved.Hold tight lads, going to be exciting times here

[ged5] 18/4/2013 10:30

I posted in 527 an extract from today's RNS. I found this part interesting:-

"including the right to receive any dividends and other distributions"

I'm not too sure what that means myself. I was just wondering if there might be a one off payment to shareholders once all the cash has been received.

Probably unlikely but isn't speculation the name of the game?

[the count of monte_cristo] 18/4/2013 10:19

Thanks Ged5 - sorry I maybe being thick but what do you mean by your last sentance, not sure I understand.

[ged5] 18/4/2013 09:29

Well I don't think scruff1 will!

By then these will have made us so much money we'll be sunning ourselves in warmer climes!!!

Maybe there'll be an one off "other distribution" once all the other cash has been received.

[the count of monte_cristo] 18/4/2013 08:51

Agreed - although to place it in perspective the 2,102,240 new ordinary shares is small beer.

However I hope that if they purchase anymore farms, projects or assets that they use cash and not shares. So that there is basically no more dilution.

That being said one would expect directors to be issued shares as rewards/bonues...as is always the case with these AIM companys...

Ged5 - my opinion is that this company will probably commence paying dividends by 2016, as this is when the projects will start bringing in the cash, which the company wil then have to decide what to do with it, so maiden dividended by 2016 I reckon. IMHO - wonder if we will still all be holding by then!? :))

[ged5] 18/4/2013 08:48

It's not clear who the vendor was nor how much was paid. Maybe they wanted shares and cash as part of the deal.

An interesting paragraph tucked in the middle of today's RNS:-

"The Consideration Shares will, when issued, rank pari passu in all respects with the existing issued ordinary shares of Agriterra, including the right to receive any dividends and other distributions declared following Admission."

[scruff1] 18/4/2013 08:35

One of the reasons I joined here was because of the cash they had. Why issue for more? Don't get it and don't like it. A little early yet but already thinking - out.

[flashheart] 18/4/2013 08:35

Was thinking the same thing although does it say this was agreed back in January or am I reading it wrong. Looking ahead this has all the makings of a major agri business with increasing revenue, profits and dividends. My only slight concern is that they try and run too fast and over stretch themselves in any capacity.

[ged5] 18/4/2013 08:31

A slight increase in the beef herd (now 6213) but why have they issued more shares when they have approximately £19M in cash?

[the count of monte_cristo] 18/4/2013 08:20

Over 1 billion shares in issues, with out cash resources I hope we dont add many more shares to this figure over the next few years.

[sitiain] 16/4/2013 13:32

vykes
there aree certainly no wild animals like big cats anywhere near AGTA assets.
the trouble with the whole region is when they cut the forests down.
african grass (bush basically) quickly takes over and drowns out any sunlight for samplings.
the growth rates in these regions are very high so small trees have no chance.
creating jobs, schools ,roads
are the best way forward.
it will also i hope stop the terrible trade in bush meat which has plagued certain countries in Africa.If AGTA can provide affordable beef to help kill this trade then they will provide a great service to the wild life .

[the count of monte_cristo] 16/4/2013 11:50

vyke - not 100% sure but I believe they are mainly brownfield sites and not greenfield and thus not clearing or cutting down pristine forests or destroying key natural habitats. Also I doubt that there are any big cats in Sierra Leone where the Cocoa plantations are, they would have been wiped out decades ago.

I was keen to know that the Palm oil plantation in Sierra Leone is a brownfield site, these Palm Oil plantations along with unlicensed logging are a huge negative to the global forests and ecosystems, you only have to look at the vast tracks of once pristine natural forests in Indonesia, Kalimantan, to see the devastating impact of this mono culture.

So far I am happy with AGTA going in and getting previously producing brownfield sites and bringing them back into production, remember both Moz and Sierra Leone have only recently emerged from devastating civil wars which ravaged the country.

That being said the operations will have negative (and positive) impacts on the local environment, but then they also give employement, allow other investments in schools, roads, hospitals ext to take place and also allow a sustainable produce to be grown and developed and mostly locally consumed.

[vyke82] 16/4/2013 10:45

Yes there ia a lot more space and capacity at the abattoir . The carcases seemed a bit skinny to me:)I watched BBC natural world about Afrika Yesterday, leopards in particular. They are hunting on cattle because their natural habitat is being turned into land for humans. When i saw some pics of AGTA presentation cutting forest for cocao, i felt sorry for the animals whose teritory is being turned into land for people and they might die. Moral morning!

[the count of monte_cristo] 15/4/2013 15:03

Here you go guys, enjoy!

[the count of monte_cristo] 15/4/2013 10:59

Thanks - also add to this that they raised $15m via a placing at 3p in January of 2012 (think the date is correct).

It would be nice if they informed us how much they were paying for buying these farms, and plantations. However I guess it is sensitive information as we dont want our competitors to know how much we are paying. As you say will all show up in the accounts.

[vyke82] 15/4/2013 09:27

Sudanese money isnt in yet and the other $10m from the Ethiopian oil is still questionable bc of further drilling needed.As for Total post aquisitions, hard to tell since they don't mention prices paid for land. Need to wait for audited results.

[the count of monte_cristo] 15/4/2013 08:18

Does anyone have any ideas how much cash AGTA actually have?

25 May 2012 - An GBP11 million cash payment from the South Sudanese, represents approximately 30% of our current market capitalisation and further enhances our already strong balance sheet on a non dilutive basis."



31 January 2013 - that it has completed the assignment of its 20% interest in the South Omo Block ('the Block') to Marathon Ethiopia Limited BV, a wholly-owned subsidiary of Marathon Oil Corporation (NYSE: MRO) ('Marathon Oil') and has received a payment of US$28million (plus closing adjustments), from Marathon Oil.This injection of capital into our business, representing approximately 50% of our market capitalisation...

A further US$10 million (subject to applicable tax) will be payable to Agriterra on Marathon Oil's participation in a commercial discovery in the Block.

A further US$10 million (subject to applicable tax) will be payable to Agriterra on Marathon Oil's participation in a commercial discovery in the Block.

[the count of monte_cristo] 15/4/2013 07:35

Interesting, thanks Ten - we will know more in May.

[tenapen] 15/4/2013 07:04

East Africa Operational Update

15 April 2013 - Tullow Oil plc ("Tullow") provides an update on progress with the Sabisa-1 well in Ethiopia and announces a successful first flow test of the Ngamia-1 well in Kenya.



Ethiopia - Sabisa-1 encounters hydrocarbons requiring logging and further evaluation

The Sabisa-1 well in the South Omo Block in Southern Ethiopia has been drilled to a total depth of 1,810 metres. Hydrocarbon indications in sands beneath a thick claystone top seal have been recorded whilst drilling, but hole instability issues have required the drilling of a sidetrack to comprehensively log and sample these zones of interest. The sidetrack recently commenced and a result is now expected in late May. Tullow (50%) is the operator of this well with Africa Oil (30%) and Marathon Oil (20%) having non-operated interests.

[ged5] 12/4/2013 12:40

Some interesting posts! thank you!

I received a partial reply from StBrides. I had asked if AGTA knew of any seller and if there were contingency plans if the rebel attacks in central Mozabique escalated.

i got the expected reply that they hadn't been notified of any percentage change and

"to date, Agriterra has not received one of these from any of its major shareholders, however if one is received, Agriterra will issue it to the market immediately. I'm afraid I cannot comment on any details regarding Agriterra's shareholdings which are not in the public domain."

No comment was made about the rebel attacks.

They did add:-

"the Board of the Company is confident that the model developed for Agriterra has the potential to generate significant value for shareholders. With a strong expansion programme in place, coupled by a cash position which represents approximately 70% of the company's market capitalisation (currently £27 million), in addition to a net asset value in excess of US$64.5 million, Agriterra is very well positioned to deliver value for shareholders moving forward."