Agriterra (LON:AGTA) (3.5p and 1.8% of JIC) has given an update on its agricultural operations. It has acquired a 2,500 hectare farm with a producing banana plantation, a macadamia orchard and additional land capacity for cattle. The 48 billion litre Mavonde dam is now full with capacity to irrigate the ranch for four years and support head to hectare growth. The current stud breeding herd stands at 900 head with a target to expand to 2,500 head by end 2013. Initial trading at Chimoio beef retail unit has been strong with sales of $1,000 to $1,500 per day and increasing. The second beef retail unit is expected to commence trading in Tete by the end of this month. Finally, the maize milling operations at Compagri is operating near full capacity and generating improved revenues.

Whilst all this is encouraging, I think the market is really waiting for confirmation that it has received the $50m payment for the sale of its legacy oil exploration acreage at South Omo and the £11.3m compensation payment from the Republic of South Sudan government. Holding on in anticipation!

Unlock the rest of this Article in 15 seconds

or Unlock with your email

Already have an account?
Login here