ATP - General Discussion, page-123

Of course this was a particularly large auction. If one assumes annual sales remain at last year’s level of 583k, this auction accounted for about 22.5% of annual sales. Annualising the results from this auction gives revenues of ca A$60mn from 90% of annual production. So total revenue would be perhaps A$66mn. Conservatively, costs should be no more than A$20mn exc capex. On the other hand, prices and momme/pearl were a little lower in the September auction, and it could be argued that the November results were exceptional and might not be typical of the rest of the FY. In terms of reported profits (rather than cashflow), there should be a profit from the revaluation of the oyster stock. In conclusion, the company is set for a very profitable year indeed, but the more important question is probably how long will such favourable market conditions last? Given it takes so long to grow pearls, it’s unlikely that supply will respond quickly.