Skiman4 took the words out of my mouth, or rather keyboard!
Still it could well be a timely purchase to maintain market position, spend $40mil and have immediate cash flow with 1000 tonne of of prawn which is just under the output of SFG existing farms. Based of returns published by SFG should pay for itself in 3 years and not have to wait the 2 more years that PSD predicts will be the first harvest. Funding should not be a big worry for such an asset to a business with existing expertise and markets in this area. The cash flow would then be spread between long term debt repayments and development at Legume Station. Further, the existing brood stock developed by PSD could be immediately productive in the new farms with possibly some of their existing nursery pond being immediately upgraded into grow out ponds for greater productivity. All great speculation for us in the grandstand watching the game and no idea or ability to control the outcome.
SFG Price at posting:
3.2¢ Sentiment: Buy Disclosure: Held
