Ann: June Quarter Cash Flow Report-CSS.AX, page-10

Slow day. Not surprising; Overall a good report in my estimation but leaves some questions.

1. They are selling 40% (already!) of their tonnage as frozen. Algebra says that if farmgate prices are $14/kilo for fresh then they are getting ~$9/kilo for frozen. Is this profitable?
2. Massive y/o jump in revenue. Will this sustain?
3. If freezing the fish was supposed to lower feed costs, how come feed costs jumped so much compared to the same quarter last year?
4. 4.7M in Liquidity. Next Q will also be cash flow positive due to seasonal low feed demands. Will there still be enough liquidity for the hard months of Q2 and Q3?
5. R&D quadrupled. Hmmmm?

Other than that, some positives like the revenue jump, and non-feed expenses are only up a bit, meaning that freezing the fish is not very expensive. Probably another quiet 3 months ahead of us.