Agriterra: Opens second beef unit in Tete. Scepticism to shift to enthusiasm?

Tuesday, Feb 12 2013 by
1

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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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
0.1  3.4%
P/E (fwd)
n/a
Yield (fwd)
n/a
Mkt Cap (£m)
17.8



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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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