Ann: NZK FY20 guidance, page-5

Clearly not what investors want to hear - a reduction in harvest with increased capex is a double blow. They were sure to mention that they grew the value of their salmon significantly which points to positive revaluations on the biomass which helps keep NPAT near last year.

Yes open ocean farming has its risks but in order to get volumes back on track NZK just need confirmation they can move to deeper, cooler sites - open ocean farming is a long-term plan. It definitely has its risks which are hard to quantify right now.

Fortunately NZK have strong pricing power and can direct more volume to export markets instead of locally in NZ. They are in control of the pricing which is a saving grace compared to traditional salmon, not king-salmon producers.

A positive ann on moving to the cooler sites should push us back to 2-2.20