The market has under-reacted to this. Now the business is set to...

The market has under-reacted to this. Now the business is set to be insured against La Nina and warmer years from global warming or whatever. They will not necessarily need to use these slightly more expensive ocean (I imagine) pens in a normal year, but will have the option to do so. There is also the option of applying for further ocean pens, which, if managed well, could be a nice carrot to incentivise very careful environmental management. So there seems no reason there could not be multiple blue endeavors over time. So there is a growth factor now in the business now.

The business has typically earned about $NZ15m NPAT roughly in non La Nina years. The MC is about $139m NZ.
However soon NZK will be able to produce a higher amount of premium Ora King Salmon, and will have less years where they cannot meet demand and probably break some customers habits. We are looking at a rough doubling in profitability, and significantly reducing the probability of a bad year. So I suspect the market will soon start to factor in about $NZ30m per annum, with a growth factor, and/or "premiumisation" factor we might get a PE of 20x or so. Might have to wait a while, but the settings are in train IMO.

There will be cap ex of about $35m or so, some of which is probably already covered. Some of this can probably be equipment leased. I suspect that with some non La Nina years on the way, NZK can probably cover this with profits etc if they wish. Being a NZ co, any cap raise will be pro-rata based and not dilutive.

I bought as many as I could get in the recent cap raise as I could be a huge re-rating in this business, if they were successful.
I hope I can afford a bit more Ora King from the local fishmonger soon - lol
GLTA

The ASX isn't looking very liquid, but I suspect it will reflect the NZX with some patience.