Agriterra: Opens second beef unit in Tete. Scepticism to shift to enthusiasm?
Agriterra (LON:AGTA) (3.25p and 1.6% of JIC portfolio) has given a brief update on its beef operations in Mozambique. Following the opening of its new abattoir and its first retail unit in Chimoio a couple of months ago it has opened a second unit located in Tete. The Company plans to open a further four retail units during 2013 to be supplied by its abattoir. As Euan Kay, Executive Director says this should improve the margins from its beef operations significantly.
Conclusion: Having invested heavily in building its beef operations in Mozambique we are now moving into a phase where we should start to see some returns on that investment. Since buying the position back in November a fair amount has happened at the Company but the share price has made very little progress. After receiving $28m cash from Marathon Oil in January, cash now represents about half of the market capitalisation. Furthermore, the NAV of the business is around 5.3p per share. As sales increase at the agricultural operations hopefully scepticism about the Company will turn to enthusiasm. Happy holder!
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On 1st January 2012 I set up the JIC portfolio with £151,110 cash.Under "Transactions" you can see how it has been invested, "Portfolio" shows the current portfolio and my approach to investing is described under "About Me". A history of all my postings can be found under "Company Blogs". I… ...read more or visit website »
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Agriterra Ltd is engaged in investing in agricultural and associated civil engineering industries in Africa. The Company has four agricultural divisions namely: Mozbife Limitada (Mozbife), which conducts cattle ranching, feedlot and abattoir operations; Tropical Farms Limited (TFL), which manages the Company’s cocoa sales, trading and farming activities; Desenvolvimento E Comercializacao Agricola Limitada (DECA) and Compagri Limitada (Compagri), which operate maize farming and processing businesses, and Red Bunch Ventures (SL) Limited, which houses Agriterra Ltd’s palm oil operations. In February 2013, it opened its second beef retail unit (the Retail Unit) in Mozambique. In February 2013, the Company expanded its cocoa and farming operations in Sierra Leone, through its wholly owned subsidiary Tropical Farms Ltd. more »
