Ann: Acquisition of The Van Diemen's Land Company, page-13

An interesting play...however may be capital intensive in the first few years to build capacity to produce "value-added" dairy products. Management not familiar with running farms - BAL is a marketing company, Kathmandu a retail clothing company. I would watch with interest to see if they're bringing any agriculture expertise onboard. Also, 1 bil shares issued - a very inconvenient thing to have for a small company as it would make the share price very hard to rise.

Current farmland of 7000+ hectares used, 30000 cattle in total but only 18000+ milked currently. VDL owns close to 30000 hectares, which means can potentially increase cattle head by 4 times, which means then it could potentially have up to say 70000+ cows being milked. But that will take a number of years and $$ to expand. More importantly, if Net profit is only $3M+ for 18000 cows, does it mean that it'll only achieve $12M net profit?? Any precedents showing how much a farm can potentially earn?

I personally won't buy into this yet..