I had taken a look at the half yearly and the latest quarterly and find something that may be of interest:
1. Construct costs of about $6m per 5000 Abitat ranch are not capitalized but charged as operating cost for the period. This very much tie in with @Bilson's point that the cost will be reduced once the reef is completed. If accumulated losses doesn't exceed $12m at 1H2019 account, that would indicate that the operation is generating profit so far.
2. 2 tranches of Seed money who invested in late 2016 paid $0.16 and $0.20 per share. Currently, apart from the operator owners, everyone is underwater (punt intended).
I have been trying to fish out (punt intended again) some equivalent commercial valuation that may put a value to our operation. Commercial Wild Caught Abalone Licenses is one I may take a reference to:
Indicates a value of about A$220,000 for a license. A quota is given to each Tasmanian License and is adjusted yearly. For 2018, the allowable catch is 381 kg per license (combination of a larger amount of Blacklips and a small percentage of Greenlips).
Which will give a value ($220k/381) $577 per kg worth or $577,000 per ton. Lets be conservative and give the licenses to harvest a ton of abalone at $400k just for argument for this valuation.
OGA will harvest 40 tons by June 2018, 118 tones (100 from Flinders I and 18 from Flinders II) by June 2019, 140 tons by June 2020, 200 tons by 2021 (assuming we have not proceed with Esperance and Augusta III).
At 118 tons harvest, the business should worth $46m just on the harvesting part at $400k per ton. That makes our current market cap very undervalued.
OGA Price at posting:
14.5¢ Sentiment: Buy Disclosure: Held
