# WKL - Western Kingfish



## nukiee (15 June 2007)

Are there any interested in this non-resources IPO that will be coming up. Good future prospects for this stock

·         WKL’s key focus is the development of a Yellowtail Kingfish (YTK) aquaculture facility at Jurien Bay, WA. The fish is highly rated for sashimi, especially in Japan.
·         WKL has acquired existing leasehold assets, including a hatchery, offshore pens and aquaculture leases over 30 hectares with further lease applications, from an existing aquaculture business. This will enable YTK cultivation to commence immediately.
·         A trial batch of fertilised eggs was introduced to the hatchery in May 2007. Larvae developing into fingerlings are presently in the hatchery. It is expected that the first batch of some 20,000 YTK will be ready for introduction to the offshore pens in July 2007 and be available for sale by July 2008. Suitable brood fish have also been collected. 
·         By the end of its third year of production, WKL is targeting YTK production of 500 tpa, equating to YTK sales of $4.5-$5.0 million. Revenue from lobster trading is also expected in a relatively short time frame. Long term YTK production at this site is, we believe, targeted at 2,000 tpa. 
·         WKL has attracted an experienced team of aquaculture specialists.
·         In addition to producing Yellowtail Kingfish, WKL is exploring several crustacea business models, including:  
-   crayfish warehousing, to take advantage of substantial seasonal price fluctuations of that product; and 
-   the grow-out of juvenile lobster, collected from the wild.

Conclusion

We believe that WKL’s business model is sound and that it has the appropriate location, choice of fish, facilities and expertise to meet its objective of profitably producing Yellowtail Kingfish on a commercial scale.  

There is every reason to expect that, with appropriate support from the Western Australian State Government, the company will achieve its target of producing 500 tpa after 3 full years of production and that production could significantly increase thereafter. 

In addition, the crustacea projects being investigated have the potential to add significant value to the company.


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## Miner (1 August 2007)

*Re: WKL - Western Kingfish Ltd IPO*

WKL listed at 0.32 against list price of 20 cents (?). It closed at .29 considering all big players got slaughtered in the market today.
This share will be worthy to watch.

Regards


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## lazyfish (3 August 2007)

This is certainly an interesting stock. However I think it is slightly overpriced at the moment, considering that the market cap (non-diluted) is at 30c * 63.81 mil shares = 19.143 mil. After *THREE* years the company targets a 500tpa production, which roughly translates to a 4.5mil revenue. I couldn't find any info on the operational costs of KWL, but let's be pessimistic and assume 1.5mil a year (5 board member salary + employee salary + lease, etc, please correct me if anyone finds a more accurate estimate of cost), EBIT is around 3 mil and PER is more than 6. Looks a bit expensive at this stage since there are so many unknowns. 

I have also read the "state one" report, part of it is a bit biased IMHO, it mentions "Asian" taste for sashimi, in actual fact the only significant sashimi consuming country is Japan, i.e. China, india etc don't consume much sashimi at all. And you can be very pessimistic and agree with me that the Japanese population is declining.

This is leaving the rock lobster and bug spec appeal out, of course. I am definitely interested in this stock, though, and I certainly could be wrong, so DYOR!!!


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## greenfs (18 September 2007)

Since listing and with the August market correction this sp has come back to a more realistic premium of 4 cents over the list price of 20 cents. I would like to buy some as a long term (say 1-2%) position in my Super, but will probably wait until the graph trends become a bit more defined by market.

Does anyone else have some up to date gossip on this one?


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## Ben10 (2 September 2008)

WKL look set to harvest their first batch of YTK at the end of this year, i wonder what this could do to sp??


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## tge oracle (2 November 2008)

I think this company will really struggle. They are obviously having trouble raising more funds with their share price languishing below the share holder offer, no body is going to pay more when they can purchase cheaper on- market. The only option left is to borrow more increasing debt levels....not good in this environment. This increased debt will impact their ability to achieve positive cash flow even if they can sell their YTK next year.

Disclosure ; I sold my holding earlier this year and no longer hold any WKL shares.


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## tge oracle (14 November 2008)

They have now called for a trading halt due to the health of their fish. It will be intersting to see what's going on with this company.


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## tge oracle (18 November 2008)

They have lost 30% of thier YTK and could lose up to 70%. This doesn't look at all good for the future of this company as the share holder offer will have to be abandoned, or , significantly reduced in price i.e. 1-2c. The only other option is to borrow....can't see anybody lending them money though!
Could be the beginning of the end for this company.


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## Basilica (11 December 2008)

Hi People, This is my first post and come from a background of IT and Aquaculture.
On the 2/12/2008 the company appointed Ferrier Hodgson as "Joint and Several Voluntary Administrators".
The reasons for the stock mortalities was a gut bacteria "From my Memory".
Their captal raising failed as a partial result of this.
It will be interesting to see what the rebirth of this company will be if any
Australis Aquaculture (AAQ) on 8/01/2007 bought 10% of (WKL) company but i am not sure if they still own them.


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## Basilica (11 December 2008)

I justed checked the exposure of (AAQ) to (WKL) in the 2008 annual report.
They still own 25,000,000 shares they bought in 2007 but its percentage has reduced from 10% to 3.92%


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