The cash burn may end up lessening. If they cull the fish, there's less feed, less work, less infrastructure maintenance, less cash burn. Of course, there's also less to sell. With 3% mortality per week and increasing, you'd expect to have none left within about 10-20 weeks, maybe sooner, and what's there isn't growing properly anyway. A total cull within the next two months seems likely, but who knows, maybe it can be dealt with (I don't know much about the possibility of removing disease in a situation like this, I'd love to learn more if anyone knows). I wouldn't be at all surprised if the relevant authorities enforce a total cull for quarantine reasons, but then again, that might be utterly unnecessary. I don't know (again, I'd love to hear if someone else does). I was puzzled by someone saying it wasn't as bad as I'd made out! It's actually much worse than I expected.
If at the end of the day it's just the directors sitting around the fish tank sprinkling a bit of food out of a packet from the local pet shop to the three remaining SBT they probably have enough money to last another two or three years.
Anyone noticed that the mortality rate of the tuna is not that far off the YTK?
I saw this article, published today. It basically just summarises today's announcement.
Sick fish means not so Clean Seas
A breakout of enteritis among Yellowtail Kingfish is causing financial concerns at Clean Seas Tuna.
The South Australian aquaculture company is reviewing the future of its yellowtail kingfish operations in the Spencer Gulf after 35 per cent of juveniles were wiped out by an infection of the intestines.
Tests are continuing to determine the cause of the health problems.
A strategic review of the business will look at the impact of the health problems and other options for its future, Clean Seas said on Wednesday.
"The final findings of this strategic review may require the company to consider writing down the carrying value of specific Kingfish assets," it said in a statement.
Clean Seas shares were down 0.2 of a cent, or 4.2 per cent, to 4.6 cents at 1309 AEST.
The company posted a loss of $7.7 million in the six months to December 31, a smaller loss than in the previous corresponding period.
It has forecast further improvements in its trading performance for the full 2011/12 financial year, outside of the potential writedown.
The company is also working towards commercial production of southern bluefin tuna, and said trials were progressing well.
About 100 tuna are currently in an on-land facility, and ways of improving the quality of the facility to accelerate growth rates are being explored, Clean Seas said.
The company has also appointed the former chief financial officer of aquaculture company Tassal, Nick Burrows, to its board as a non-executive director.
Link to article here: http://www.thebull.com.au/articles/a/27602-sick-fish-means-not-so-clean-seas.html
CSS Price at posting:
3.9¢ Sentiment: Sell Disclosure: Not Held
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