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WOA - Wide Open Agriculture

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there is a 15 minute webinar from WOA, by MD Ben Cole.
https://www.sharecafe.com.au/2020/0...e-sharecafe-hidden-gems-webinar-presentation/

He comes across as knowing his stuff, talks the book well, A couple of takeouts, 3 actually:
Existing protein ... beef and lamb. Quality branded product (Dirty Clean Food) that has a hook - regenerative agriculture - that was sold to restaurants has moved to online during Covid ... they are selling it all. Also moving into pork and chicken.
Plant Based: Europeans are eliminating soy and almond 'milk' (about 10 minutes in) so they state .... oat 'milk' is the way to go. And all those happy vegans prepared to pay for it. $4 a litre in Woolies.
Lupins ... highest sources of plant proteins available (40%) combined with a high source of dietary fibre(37%). BUT, unprocessed, lupins have an inability to gel. New technology they have developed in refining the product, gain the protein benefit and allow it to disrupt soy protein market.

Still only about $50mill Market Cap.
So, what's the problem; is there a problem?
..Broke out from 13c in May, Raised money @ 27c at month end, was around 40c in June / July then whooshka in August. The shareprice has run hard; now $1.39
..A lot of interest - every screen jockey is over it. It is a sexy sector. Carbon Neutral; who could possibly disagree?
..WA based. Top 20 hold 79% of issued capital; 26% shares held by Board and Management.
..No mention of hemp which was the hot ticket a year ago. Will such promiscuity continue?
..To me a Statement like "Our business model connects regenerative farmers with conscious consumers" implies costs are high, but we hope to make that back by charging a lot.

I think it has run ahead of itself (maybe its a Festering Canker?)
 
1 year on almost to the day from last post, this has come back to mind.
Lupins, plant protein, sustainable farming, crop rotation etc seasonal benefit?

Chart seems to have consolidated out, no idea on current company fundamentals though, however, from a different aspect, it would seem producers of plant proteins are buying all raw product available, an undersupply situation.
Watching out of interest only.
3 year weekly chart, for some perspective since last post at the highs.

 
It is interesting, to me at least, that one of the narratives associated with the potash story, and especially BHP committing to Jensen project with its 100+ year lifespan, was the comment that the move to plant based will necessitate a lot more fertiliser.
 

WOA signs a Supply Agreement with Monde Nissin Australia Pty Ltd to supply plant based concentrate Buntine Protein™.
• Buntine Protein™ is a high-value, plant-based protein concentrate made from lupin seeds that can be used as main ingredient to replace animal-based ingredients for food and beverage applications.
• MNA, in response to the growing plant-based foods sector, will use Buntine Protein™ as the main ingredient to develop various food and beverage products for the Australian market.
• MNA is the owner of leading food and beverage brands Nudie, Black Swan, Peckish, and Wattle Valley, with a national distribution network covering major supermarkets, independent grocers and food service. It is also the national distributor of Quorn, a meat alternative food product from UK made from mycoprotein.
• WOA will supply MNA Buntine Protein™ from its pilot plant to support the latter’s new product development (NPD) and test market.
• It is estimated that MNA will purchase up to 60% of total production of Buntine Protein™ from WOA’s expanded pilot production facility over a two year period.
• First shipment is expected to be delivered in June 2022.

WOA had drifted, drifted low.. @frugal.rock was spot on. Today's news has seen a 25% bump from 54c to high 60's

frugal.rock said:
Watching out of interest only.
Click to expand...
as was I , and will remain so.

DNH
 
Share price has slid to $0.19/share for the end of the year - the numbers from the annual report don't look good. It's hard to see the unit economics working in their favour for quite some time unless there is some underlying operational leverage I can't see.

They've burnt $5m in cash in the last 6 months with $14.6m forecast by Q1 23 end. Current MC of $25m against net assets of $19m of which the majority is cash/inventory is interesting.

Question - wouldn't 'Selling Expenses' form part of COGS? unless they mean marketing?

 
Yes, quite often the marketing (I think transport as well) is called selling expenses. It's not part of COGS because technically marketing and shipping is not actually required to 'make the goods' its only required to 'sell the goods'. I could be wrong here, but I think for example if you were buying and then reselling those goods then shipping and marketing might make their way into the COGS. (I'm sure the internet has the answer!)

I looked at WOA a few months back when it was probably around 60 cents a share and couldn't believe it was worth any more than about a token 1 cent. Looking at recent quarterly and they're still hemorrhaging money. Surely sales need to increase by several orders of magnitude for them to look at being profitable (but what would I know?).

I don't know how these companies continually raise capital... With the cash burn the way it is the cash backing is hardly worth much of anything.


2
 
Looking like this year and next is make or break for WOA.
The recent Buntine protein Ann sounds positive, but I'm not sold.
Wouldn't consider it before an updated quarterly.
Chart update.


 
frugal.rock said:
Indeed.
Voluntary suspension to clarify the last announcement.
They hope to have it announced before the end of the financial year.

Apparently, this kind of behaviour is acceptable from a listed company.

Click to expand...
Likewise, stock code TBA in similar situation/dilemma ?
 
say what about the meeting in early May ?? ( or do they mean that meeting or another one near the end of June/early July )

sorry but went through the ann ( that apparently needs clarification ) and got knocked-dizzy with buzzwords ( box-tick overload )
 
Latest ASX questionnaire to them points them out as being Muppets.
Worth a read for a laugh. Lupin crazy.

 
and the morning optimism drains away, on an almost daily basis

.
 
Are you sure they said that?

Normally I hear them use the argument that rising incomes globally will increase demand for meat (using the code word protein) hence the need for more fertiliser.

plant based diets require less crops to be grown than meat based diets, because the animals we have in factory farms and feed lots eat a lot more crops than humans would.

for example currently only 6% of the worlds soybeans are used to feed humans directly, the majority go towards animal feed.

so if you believe that more pigs and chicken going to be consumed globally, then you would believe more soybeans will be grown, raising the demand for fertiliser.

but if you believed more of those soybeans will be turned into tofu, and less going to pig farms, then demand for soybeans and fertiliser will drop.
 
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