Agriterra: A bird in the hand...

Thursday, Jan 31 2013 by

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.

Filed Under: Food, Stock Picks,

About the Author's Website

johnrosier Profile Image Promotional

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". Most… more or visit website »


"The investments and any other products mentioned in the johnsinvestmentchronicle website should not in any way be considered advice to buy or sell anything. Any information on the website is given in general terms and does not constitute personal advice to any individual. Readers are responsible for developing and applying their own strategies based on their personal circumstances and furthermore readers should obtain independent financial advice from an FSA regulated intermediary before investing money. Information or views in older blogs may become outdated and should not be relied upon unless confirmed by recent comment." "johnsinvestmentchronicle takes every care to ensure that the factual information on its website is accurate but cannot guarantee this."

Do you like this Post?
1 thumb up
0 thumbs down
Share this post with friends

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)
-0.0  -0.4%
P/E (fwd)
Yield (fwd)
Mkt Cap (£m)

  Is Agriterra fundamentally strong or weak? Find out More »

What's your view on this article? to Comment Now

You are feeling neutral

Use the £ sign in front of a ticker to turn £VOD into Vodafone PLC

You can track all @StockoChat comments via Twitter

About johnrosier



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 in which I record my trades and the reasoning behind them. more »

Stock Picking Tutorial Centre

Stock Picking Simplified

Stockopedia takes your stock picking to the next level with cutting edge Stock Reports & Screening tools.

Get started
or Take a Tour to find out more.