From the 4C report released today, over the full year, we have...

From the 4C report released today, over the full year, we have used $9,585,000 in cash in operating activities, but that includes expenses of $21,317,000 on feed costs to grow more biomass ahead of sales and production. Without that cost, we could have generated $11,732,000 in net positive cash, which is a net positive cash margin of $4,348/tonne. In order to sustain that sort of investment in biomass growth without going cash negative, we would have to be producing and selling around 4,900 tonnes of fish per year. That is probably at least two years away yet. I just wonder how much longer we can continue to grow the biomass in excess of sales at the current rate.

It seems that management is winding back the rate of biomass growth and expenses on feed for the current quarter - from around $9m in the last quarter to $4.0m in the current quarter - or is that just a seasonal issue? With a further growth in sales and revenue in the current quarter above $12,670,000 and anticipated cash outflows of $13,650,000, including a reduced expense on feed for biomass growth, we could well be cash flow neutral in this current quarter. Last year the growth in sales revenue from June qtr of 2017/18 to Sept qtr of 2018/19 was 2.1% - from $9,998k to $10,208k. Can we achieve a 7.7% increase in sales and revenue in this quarter from the last quarter?