CSS - Clean Seas Seafood

[tge oracle]

Re: CSS - Clean Seas Tuna

Firstly would only say that the $8768k does not include the grant you mention. The grant is reported seperately. So oracles numbers are correct as they stand.

Second the grant is not a one off. You will find that CSS will receive many millions in government grants over the next few years as they continue their R&D efforts.

Thirdly I think the sales of Mulloway would not have made up more than 5% of sales - so not that significant and the fact that they stop production of mulloway simply means more kingfish can be grown and sold with the capacity released so sales are unlikely to be affected by the mulloway discontinuing.

Thanks Truevalue, I was just about to type my reply having been out for the day. You have made the points I was going to make.

The main point I was trying to make this morning is that receipts from customers ( sales ) have increased substantially. I regard this as a very positive sign as it indicates that their marketing / sales is improving and it would appear they are gaining more customers, or, their exsisting customers are ordering more YTK. Either way it looks good.

 

[Basilica]

Re: CSS - Clean Seas Tuna

Firstly would only say that the $8768k does not include the grant you mention. The grant is reported seperately. So oracles numbers are correct as they stand.

In a normal Q it may be the 5% you stated. But if CSS has sold all stocks in cages of different sizes to other farmers and to market it is likley to be greater than a normal Q

I also reported the grant seperatly under cash flow not in the revenue paragraph. the grant and Mullaway are in the cash flow. But i should not have used the word revenue in the cash flow paragraph.

The main point I was trying to make this morning is that receipts from customers ( sales ) have increased substantially. I regard this as a very positive sign as it indicates that their marketing / sales is improving and it would appear they are gaining more customers, or, their exsisting customers are ordering more YTK. Either way it looks good.

Until we know the value of the Mulloway sold we do not have the info needed to project future revenue, as mulloway will not provide any further revenue. That is my point.

 

[truevalue]

Re: CSS - Clean Seas Tuna

Another update from CSS.

Things progessing well. Oldest fingerlings are now 8cm in length. They have 3 batches of varying ages.

$6m in mulloway inventory that will be sold over the next 15 months will provide sales and cashflow.

Interesting that next spawning of SBT will be in October this year with fingerlings going into sea cages in December. The company is now saying they can "turn on" the broodstock and make them spawn when they want them to. That is a very positive sign.

 

[kenny]

Re: CSS - Clean Seas Tuna

Good news regarding the continued survival of fingerlings and the reinforced statement of confidence in the Kingfish side of the business.

Book value by CSS of Mulloway is $6M. What they get for the inventory when sold remains to be seen.

Does the fact that the fingerlings need to be shifted out of cold winter waters mean this will need to be done each batch in the future? That will limit the future production volumes to available holding tanks which are presumably more costly to buy/maintain than sea cages.

Regards,

Kenny

 

[truevalue]

Re: CSS - Clean Seas Tuna

Does the fact that the fingerlings need to be shifted out of cold winter waters mean this will need to be done each batch in the future? That will limit the future production volumes to available holding tanks which are presumably more costly to buy/maintain than sea cages.

Regards,

Kenny

No the fingerlings would normally go into sea cages now but the water is too cold. In future they will put them into sea cages when the water is warmer and then they will be bigger and better able to cope with the colder water when winter comes around again. They just will time the spawnings a little better.

 

[FI$H]

Re: CSS - Clean Seas Tuna

Will we eventually get to know the fingerling numbers?

We expect to release more detailed results in 3Q CY2009.

Isn't that now?

They forecast a break-even for the kingfish business. This could be a conservative estimate and we might even see some profit!

The company looks forward to transferring its next run of SBT
fingerlings to sea cages for growout on or about 31 December 2009.

They seem to be very confident that they'll have a significant quantity of fingerlings very soon.

 

[truevalue]

Re: CSS - Clean Seas Tuna

Will we eventually get to know the fingerling numbers?

We expect to release more detailed results in 3Q CY2009.

Isn't that now?

3rd quarter Cy 2009 is july to september

I think the reason the numbers are not being released is because the numbers are changing on a daily basis (some new some dying) so they want to wait until numbers stabilise before making an announcement. What is more important than numbers is still having fish alive now.

 

[Basilica]

Re: CSS - Clean Seas Tuna

Will we eventually get to know the fingerling numbers?

We expect to release more detailed results in 3Q CY2009.

Isn't that now?

No, that is 3Q Calander Year

Another update from CSS.

Things progessing well. Oldest fingerlings are now 8cm in length. They have 3 batches of varying ages.

$6m in mulloway inventory that will be sold over the next 15 months will provide sales and cashflow.

8cm is a good size. How many would be good to know.
They are doing well achieving this so quickly.

The $6M in Mulloway was at 31 st Dec 08 many would have sold last Q and remaining will sell over next 15 months.

 

[tge oracle]

Re: CSS - Clean Seas Tuna

Another update from CSS.

Things progessing well. Oldest fingerlings are now 8cm in length. They have 3 batches of varying ages.

$6m in mulloway inventory that will be sold over the next 15 months will provide sales and cashflow.

Interesting that next spawning of SBT will be in October this year with fingerlings going into sea cages in December. The company is now saying they can "turn on" the broodstock and make them spawn when they want them to. That is a very positive sign.

Yes, this latest update indicates they are making very good progress on all fronts.
The rapid growth rate of the SBT fingerlings is very encouraging and the positive outlook for YTK will help support cash flow requirements and will provide more " breathing space " until the first cap raising.

 

[enigmatic]

Re: CSS - Clean Seas Tuna

Seems to be some strong resistance at 80cents if it breaks that not to sure how high it could run after that but after reading most of the comments on this thread it seems to have some solid fundies

If your wondering 55cents is about as low as i expect this to go in the short term

 

[FI$H]

Re: CSS - Clean Seas Tuna

I don't get why the market doesn't react to all the good news. with an annual production of 5000 the YTK business will generate ~10-15 million of profit. they have about 4000t of fish in the water right now. IMHO the YTK business should be 40-50 cents worth by itself...

 

[Basilica]

Re: CSS - Clean Seas Tuna

I don't get why the market doesn't react to all the good news. with an annual production of 5000 the YTK business will generate ~10-15 million of profit. they have about 4000t of fish in the water right now. IMHO the YTK business should be 40-50 cents worth by itself...

The market did react Fi$h. It was up 100% in a few months.
Do you mean Why did the market not react again?
The graph Enigmatic displayed does show resistance about 80c
It has been a rollercoaster journey so far, more longterm investors and less short term speculaters is a sign of stability i am looking for and maybe that is occuring. The level of debt is also something i would like to see reduce not increase.

 

[truevalue]

Re: CSS - Clean Seas Tuna

I don't get why the market doesn't react to all the good news. with an annual production of 5000 the YTK business will generate ~10-15 million of profit. they have about 4000t of fish in the water right now. IMHO the YTK business should be 40-50 cents worth by itself...

Well the dreaded capital raising has finally been announced. You might actually argue that the stock has performed reasonably well given the common knowledge of a capital raising being imminent. I have seen plenty of stocks get sold down dramatically as soon as the market gets even a sniff of a potential raising.

No details yet but I suspect they will raise $15 million or so via a rights issue and placement at 55-60c.

 

[FI$H]

Re: CSS - Clean Seas Tuna

The market did react Fi$h. It was up 100% in a few months.
Do you mean Why did the market not react again?
The graph Enigmatic displayed does show resistance about 80c
It has been a rollercoaster journey so far, more longterm investors and less short term speculaters is a sign of stability i am looking for and maybe that is occuring. The level of debt is also something i would like to see reduce not increase.

Sure, the development has been good given the economic climate.
But we're well short of the highs seen after past announcement. does it count for nothing that YTK division does better than expected?

 

[FI$H]

Re: CSS - Clean Seas Tuna

Well the dreaded capital raising has finally been announced. You might actually argue that the stock has performed reasonably well given the common knowledge of a capital raising being imminent. I have seen plenty of stocks get sold down dramatically as soon as the market gets even a sniff of a potential raising.

No details yet but I suspect they will raise $15 million or so via a rights issue and placement at 55-60c.

That's a lot of new shares... I wish there was a better way to bridge the capital needs till SBT sales commence. Taking on more debt is probably not a good option either.

 

[truevalue]

Re: CSS - Clean Seas Tuna

That's a lot of new shares... I wish there was a better way to bridge the capital needs till SBT sales commence. Taking on more debt is probably not a good option either.

I think this is a good capital bridge. I would rather they raise only $15m now rather than $50m. $15m probably gives them the near term capital they need and they should be able to raise additional capital in 9-12 months time when they have a commercial run of SBT. That capital should be done at a much higher price.

 

[FI$H]

Re: CSS - Clean Seas Tuna

I think this is a good capital bridge. I would rather they raise only $15m now rather than $50m. $15m probably gives them the near term capital they need and they should be able to raise additional capital in 9-12 months time when they have a commercial run of SBT. That capital should be done at a much higher price.

I agree, time is definitely on our side. It seems that landing a fish requires a lot of patience even if you're farming it.

 

[dkam]

Re: CSS - Clean Seas Tuna

Apparently only 250 fingerlings.

"About 250 fingerlings have been kept from this year's trial breeding program. "
- http://www.news.com.au/adelaidenow/story/0,22606,25442760-5003680,00.html
(BTW: I'm a long term CSS investor)

 

[truevalue]

Re: CSS - Clean Seas Tuna

Apparently only 250 fingerlings.

"About 250 fingerlings have been kept from this year's trial breeding program. "
- http://www.news.com.au/adelaidenow/story/0,22606,25442760-5003680,00.html
(BTW: I'm a long term CSS investor)

The dangers of youth and speed....... "The steering fin is not developed and because they can go 40 to 50km an hour, they are hitting their heads on the side of tanks''

I had heard they had 1000 fingerlings so I wonder if that 250 number is just the fingerlings at Arno Bay with the remainder being at the other two hatcheries.

 

[nizora]

Re: CSS - Clean Seas Tuna

May 06, 2009 11:30pm
THE Southern Bluefin Tuna at Clean Seas Tuna's Arno Bay hatchery could be worth thousands in three years.

Weigh up to 50kg each, it will be a reminder of one of the most visionary primary production breakthroughs in Australia's history. It follows Clean Seas' world-first production of southern bluefin tuna fingerlings this summer.

About 250 fingerlings have been kept from this year's trial breeding program. Clean Seas Tuna chairman Hagen Stehr said the survivors were growing so quickly they were marching towards 10cm in length after just 42 days.

Mr Stehr said the tuna were expected to reach 10kg in the first year, 20kg in the next year and up to 50kg in year three.

By comparison, the kingfish bred by Clean Seas at Arno Bay reach 1.5kg to 2kg in the first year.

Mr Stehr said it had kept three batches of fingerlings for research and development trials this year.
They have been transferred to holding tanks at the hatchery because the sea water is too cold for them.

Mr Stehr said some were dying from cannibalism and others from tank collisions.

"The steering fin is not developed and because they can go 40 to 50km an hour, they are hitting their heads on the side of tanks,'' he said.

"We know how to overcome it, which we've got to do before we start growing them commercially.''
Mr Stehr said it was planned to resume breeding next November-December and place the first fingerlings in the sea after 35 days.

"We want to sell the first fish at maybe 2kg each, hopefully by Easter next year, from the batch we produce in November,'' he said.

Mr Stehr expects enormous demand for the tuna because propagated northern bluefin tuna are selling for about $150/kg at Gordon Ramsay's London restaurant.

Clean Seas said yesterday it expected to trade positively in the second half of 2008-09, with a break-even EBITDA for the full year.

It also confirmed yesterday that it was shutting down its mulloway farming program