Agriterra: A bird in the hand...

Thursday, Jan 31 2013 by
1

Agriterra (LON:AGTA) (3.4p and 1.8% of JIC) has announced that it has received a net $28m for its 20% interest in the South Omo Block, the sale of which was announced in November. It addition it has lodged a gross sum of $12m with the Government of Ethiopia pending finalisation of any tax related to the sale. Tax will be calculated at 30% of the net gain after attributable past costs incurred in the development of the Block. After final determination of any tax payable the balance will be refunded to Agriterra. The Company will receive a further $10m from Marathon Oil should there be a commercial discovery in the Block

Conclusion: It is good to see the money hit Agriterra's bank account. If everything goes well there could be a further $10m from Marathon, some payback of the $12m lodged with the Government and at some stage they will hopefully receive the c.£11m cash compensation that has been agreed with the Government of South Sudan.


As Andrew Groves, Chief Executive points out this injection of $28m represents approximately 50% of the market capitalisation of Agriterra and will facilitate the growth of its agricultural operations. I would expect the share price to rally from here now some cash has finally arrived.

www.JohnsInvestmentChronicle.com


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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 »

Share Price (AIM)
1.46p
Change
-0.0  -0.4%
P/E (fwd)
n/a
Yield (fwd)
n/a
Mkt Cap (£m)
17.3



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About johnrosier

Johnrosier

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In September 1984, I left university with a degree in Zoology and started work in the City of London. Over the next twenty five years most of my time was spent managing UK equity portfolios with Fleming Investment Management and Henderson Global Investors, for company and local authority pension schemes as well as the reserve fund for a well known charity. During 2009 I left full time employment and decided to take time out to consider the next stage of my career. In the meantime I have been putting my years of experience to good use investing the family savings. I have thoroughly enjoyed the freedom of investing from home and despite some tricky periods during 2011 it has been a rewarding experience. In January 2012 I set up www.johnsinvestmentchronicle.com in which I record my trades and the reasoning behind them. more »



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