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MPA - Marine Produce Australia

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ric371

ric371

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The Barramundi are running
Significant announcements from MPA today

• Cone Bay expansion program includes key infrastructure and equipment improvements and deployment of additional sea cages.
• Significant acceleration in Barramundi growth rates in northern wet season, with massive 56-tonne stock increase in January 2007 to total Farm Biomass of 286 tonnes.
• New sales & marketing strategy to be implemented in April 2007 to take advantage of soaring Australian & international demand for quality seafood.
• Substantial offer received for Aussie Prawns farm, Darwin.

Following this announcement the market lifted MPA today from .028c to .037 heading back towards previous highs of 5 cents in July.
 
Looking at the pre open list there are buyers for almost 1,500,000 shares at a number over yesterdays closing.
Having purchased these at 25c some weeks ago I am excited at the prospect and see the recient announcement as reinforcing my origonal decision to buy.

I am wondering , however that with no one else making a comment , is there something I missed, maybe you dont like the best fish in the world with the bigest potential market of all sea food.

I would appreciate some comments from you seasoned traders!!!
 
Time to revisit MPA ..... This companys growing at a very strong rate ie. May ops. update ...Farm biomass of Barramundi at end of Jan 2007 was 286 tonnes.....Oct 2007 biomass 630 tonne+ ... Jan 2008 biomass projection 700 tonne +.....Current sales (2-3kg whole barra) 2 tonne per week ..projected end Jan 2008 ...15-20 tonne per week ... The stage 2 expansion will include doubling the growing cages with hard plastic, but maintaining the steel cages now in use.. for more infomation 3 monthly updates are announced.... Cheers
 
This Barra producer is ready to pop ... it Wont stay under 2cents much longer .....Revenue up 4000+%.........Marine Farm
Fish performance on the marine farm has shown continual improvement with the average weight of
harvested fish exceeding 3.0 kilograms since November 2007. This has been greatly aided by the
commissioning of the purpose built feeding vessel, the ‘Sea Supply’, and continuity of staff involved in
feeding operations. It is particularly pleasing that this has been achieved while improving the already
excellent product quality..........Development work continued throughout this period with key achievements as follows.
• Relocation of logistics vessel ‘Merindah Pearl’ from Mooloolaba in Queensland to the farm at
Cone Bay, with immediate integration into feed transport and harvesting activities.
• Commissioning of feed vessel, ‘Sea Supply’ into fish feeding operations.
• Stocking of all available 60 metre circumference cages.
• Purchase and delivery of fry production tanks.
• Purchase of nursery cage system to increase fry production capacity and shorten time fish
held in on shore tanks.
• Ordering of five new 60 metre polar circle cages to increase farm capacity.
• Ordering of five, heavy duty, plastic, “Kikko” nets for grow out cages. These nets have a
useable life of five times that of the galvanized steel nets currently in use.
• Recruitment of new farm manager, Adam Norris, from the Tasmanian Salmon farming
industry.
• Recruitment of experienced Barramundi marine farm crew from Northern Territory to bolster
strength of farming crew.
• Installation of two refrigerated containers for holding harvest product ready for transportation
to market.
• Acquisition of a water chiller and second ice maker for harvest activities.
• Addition of humane stunning equipment into harvesting line. Improved fish quality
immediately evident.
Directions for
Harvest weight over the first half of the financial year exceeded 87,300 kilograms of whole fish.
Standing biomass at the end of December 2007 exceeded 650 tonnes, with average weight in several
cages well over 3.0 kilograms. Harvest weights for the remainder of the 2008 financial year are
expected to continue to increase. .... Cheers
 
Another up 40% since I posted 2 weeks ago. With wild fish stocks declining and world food shortages getting real bad why would you not look into this stock and still under 2 cents .... Cheers
 
I've been watching this company for about a year. www.marineproduce.com

More for what they are producing now and future production output of clean healthy large Barramundi.

I have spoken at length on several occassions to the General Manager - Guy Westbrook about the operations now and for the future - they are going ahead. For those that don't know. Guy Westbrook had a crucial role in the production and growth of Tassal. He also has enormous understanding of the Australian Aquaculture Operations and those internationally.

They are entirely Australian Owned, Australian Operated and making an income with plans to expand. They currently provide fish to the national market. I believe in the future they will play a crucial role in the sourcing of Quality Fish from Australia for us Nationally and Internationally.

I've been to the Buccaneer Archipelago on a trip to Broome and seen the King Tides. Never seen currents like it before. They are constantly racing in and out with up to 11 m changes. The area is pristine.

I've watched their funding source - not banks this is a fairly tightly held family operation with strong contacts in the industry.

Do your own Research and look at EPA studies
 
An update on this gem.

View attachment MPAreport1.pdf

5 million kg per annum within 5 years when combined with the planned Cone Bay Development Plan and a combined farming capacity of 10 million kg per annum by 2018;
Click to expand...

Below is an independant report has been published acknowledging the stress of limited fish supplies in the world. It is good to see a company with forsight and passion and the good old Aussie attitude of getting it done.

A company that is producing at full capacity in its current environment and needing to expand to cope with sales orders is a positive sign in this financial drama.

View attachment MPAreport.pdf

Marine Produce’s existing project in Cone Bay off the Kimberley coast offers near perfect conditions. The combination of high tidal flows, positive for keeping conditions pristine both for the fish and environmentalists, and water temperatures allows MPA to grow high quality, high value fish up to the target 3kg weight over a 2 year period (See Appendix A for life cycle). Scalability is also easily achieved with the existing infrastructure allowing the company to take current production of 600 tonnes up to 5,000 tonnes
Click to expand...

A fish that can live in salt water or fresh. Can take extremes of temperature change. Swimming in 7 meter tides keeps them healthy.
 
MPA Barramundi are cheaper on the sale at the gate as they are plain and simple cheaper to produce.

Their diet is 1 - 1.5 kgs of food to each 1 kg body mass. This comes from pellets made in Hobart. From mainly Australian ingredients. Free from pigments and dioxines.

Tuna require @ 15 kg of food per 1kg of body weight. This is in the form of whole fish which are currently frozen pilchers imported from South America which include Chile, Peru and Ecuador. Yes, they are randomly checked but it does open the window for parasites.
 
I've been looking a diversifying my portfolio further lately and after having a bit of a read decided to jump on this one. Only brought 10,000 units but my strategy is to buy many small parcels.

Seems like a great company with sensible management.
 
Part of my investigation into MPA involved my visit to Buccaneer Archipelago Broome. I wanted to see first hand that what they said was happening was infact happening. In this case it was at my visit.

All aquaculture in Australia has a great chance of success as our waters are pristine.

Unlike the North Atlantic where contamination of fish from dioxines then used to make cheap fish meal production of pellets which are fed to overseas fish.
 
I've had a quick scan of the ASX site and through the announcements. Does anyone holding this stock have any concerns regarding cash flow? Net operating cash flows for the previous quarter and the year as a whole have been negative, by quite some way. It seems borrowings have been sustaining the company?

The Tiwi Island venture looks promising if MPA doesn't have to worry about initial capital funding for the project.
 
11% reduction in year on year unit costs achieved, with further significant cost savings expected from planned capital and farm automation projects
Click to expand...

I hold. I'm not worried about their cash flow for the above reasons, and seeing them work their model. This company are very well connected in the region with other companies for transport, support of local weather and waters.

I am patient with their growth as they have branded their product well. Their quality control is consistent. Their General Manager is extremely knowledgeable about the industry, the species and what they want to achieve. They have a very dedicated group of experienced employees.

I believe there is a growing market for premium quality white fleshed fish.

The Huttons have no intention of letting this go. DYOR
 
What I'm worried about is contained within this report;

http://www.marineproduce.com/MPA Research Report/MPA Initiation - 1H debt.pdf

Page 15 of the PDF.

To get the biomass to a positive cash generation level, they will need to find some large amounts of money. That's how the report reads anyway. I'm starting to read up on the company and that would be my major concern. Do you know of any strategies the board is thinking of employing to fund their operations until they generate positive cash flows?

If the company can get through the next few years and ramp up production, things look good. But my concern would be the next few years.
 
MPA Investors,

I am not invested in this stock but I would excerise extreme caution in participating in this rights issue.
Please conduct your own rigorous research and view the AAQ and WKL threads as you decide on your course of action.

Note - I am not a financial adviser, DYOR.
 
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