Overall a good presentation but why isn't there mention at the start of a 'salute to pioneers' who built Australia into the arguably agricultural powerhouse it is today?
On page 12, there's a politically correct ESG statement taken from MorganStanley. These types remind me of the infamous 'Club of Rome' economists of c.1970 who predicted doom and gloom: they were badly wrong.
The page 16 chart showing increased port throughput for GNC's east coast Australia operations is a standout as in 2021 and 2022, no grain imports occurred. So much was (and is) being exported!
The oilseeds story continues to be another boom for the company, with no end in sight. (A drought year or three may lower expectations).
In a couple of places, GNC mentions its 8.5 per cent stake in UMG and says 'as at 31 March 2022, it has a value of $96 million'. But yesterday, UMG dropped further, so GNC's holding is worth about $85.45 million. GNC ought be using the latest available figure, even though investing isn't a one day affair. We may see UMG's price rise a little today but my point about the lower current ASX valuation of UMG will likely remain valid. In any case GNC will have to value this 8.5 per cent as at 30 June 2022 for the Annual Report and financial statements. A disappointing investment with a sub-par Chairman and Board: I sold mine.
Good to see GNC emphasising its Canadian investment at Vancouver BC and elsewhere.
On page 42, it slightly mangles rail terminology, stating '134 car locomotives'. What GNC means is 'locomotive-hauled trains of 134 wagons'. (In USA and Canada, 'cars' means what we in Australia call 'freight wagons'), and here we typically call them (for GNC and other grain haulers) 'hopper wagons'. 'Cars' in Australian rail is short for 'carriages' used by passengers. Elsewhere it mentions how the Fraser Grain terminal has a capacity of 120 wagons so shunting must occur if trains of 134 loaded grain wagons arrive.
On page 32, GNC discusses demographic trends, having noted predictions of world population growth. It talks about ageing populations and nutritional needs. However some older folk I know suggest as they age into their 70s and beyond, typically they consume less food. Is this something GNC ought quietly note?
On page 31 GNC importantly states how it has an advantage with proximity to Asia. With fast growing Indonesia and Philippines as major customers, a critical point.
One of our esteemed GNC thread contributors mentioned a few months ago how in his view (IIRC) GNC had converted too much infrastructure at Port Kembla NSW to handle imports, and so he implied it would be caught short with capacity for the exportable surplus (which is now big time into its second year). Does this remain a concern? GNC mentions it's full throttle re exports. I gather it hasn't had a problem finding bulk ships to convey the grain overseas.
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