Hi all,Looks like same songsheet with few changesBFC has to...

Hi all,

Looks like same songsheet with few changes

BFC has to clear up all non dairy assets quickly.
Believe Meat is offered on an asset sale basis - there is no EBITDA. Past information indicates Land at $6-7m and Buildings at same - total max approx $14m max. Meat at Shepp as a standalone?? Close to Campbells. Campbells to buy or get investor to buy and they become a tenant.
Water - previous owner buys back 51%. If Water is losing $$ now, hard to see a price over $0.
Tech - anyone's guess. Consumed many $$, many competitors and not finished. Value = low.
Non dairy assets = best max $15m.
Looks like,

• Scot Pac provides Debtor and Stock funding. Price?? Haven't checked current Balance Sheet - suspect both when added together = big numbers
• NAB - all other $$ need/s. Position hasn't changed in new Debt arrangements to old? NAB got "stuck".

Press suggested new BFC Debt arrangements = $70m. Surely be geared to selling non dairy assets.
Guess is non dairy sale could release $15-20m.

Debt at $50m at average cost 10% = say $5m pa. Can BFC service this debt level?? Market Cap with non Dairy sold?

So BFC Dairy issues are,

• is/are there positive margins (after all costs) in any products?
• Profit improvement Plan - is there one?
• When will BFC look at a price step down on milk. Industry need. NZ is sub A$7kgMS. BFC today $9.20??
• Sexton retirement?
• Hard Cheese at Murray Bridge - is there a business case?? NZ much cheaper.
• BFC has to make Mozz. Uses up milk that has had lactoferrins extracted. Mozz and lactos are they profitable at todays BFC milk price?
• Whey - previous invisible saviour now another commodity product. BFC a price taker again.
  

Keeping singing Board/Fab/Management.