Ferret's Stock to Watch: AUSTRALIS AQUACULTURE LIMITED 08:18, Friday, 13 August 2004
ABORIGINAL BARRAMUNDI NAME MAKING GOOD MONEY OFFSHORE
Sydney - Friday - August 13: (RWE) **********************************
OVERVIEW ********
Most Australian fish connoisseurs love Barramundi as a delectable seafood dish.
The fish name has also been used successfully in beer advertisements with fisherman working up a thirst reeling Barrmundi in on a rod almost bent in half with the weight.
Then has been the wine label called Barramunda which has lifted sales significantly in overseas markets.
Now the real Barramundi is growing into the main driver in a recently listed company called Australis Aquaculture Ltd which has a proven expertise in business and aquaculture.
It is pinning a lot of its future in the production of Barramundi fingerlings and then flying them to its aqua plant at Turner's Falls near New York.
The annual production capacity for Barramundi is estimated at 700 tonnes per annum.
This is equivalent to more than 50 per cent of Australia's 2002 output of Barramundi.
The company's plant has been successfully producing quality seafood for over 10 years and is currently growing Australian Barramundi - one of the world's most sought-after gourmet fish.
The Barramundi fish will be big enough to the market next month. 2004.
Australian Barramundi has the perfect profile for the US market, according to directors.
The Australis Aquaculture team operates from both Australia and the US.
Local staff supervise the production of quality Barramundi fingerlings from the Australian broodstock.
"We regularly fly these to our Turner's Falls aquaculture plant near New York City where our experienced American team of Aquaculturalists nurture them to maturity," the company says.
SHARE PRICE MOVEMENTS *********************
Shares of Australis Aquaculture yesterday fell 8.5c to 44.5c.
The price high on its short listing has been 65c and low 24.5c.
Investors who were lucky to get the shares at the issue price of 25c have done extremely well. Market cap is $14.5 million with 27.4 million shares on issue.
In the prospectus chairman Mr Alastair Cowden disclosed Australis Aquaculture Ltd had entered into an Asset Purchase and Sale Agreement for the purchase of the largest US indoor fish production facility, which will provide the company with immediate entry to the American market.
The facility can grow premium quality Barramundi from fingerlings to plate size in just 6 months.
It is strategically located just three hours by road from the Greater New York Area's 38,000 restaurants and 51 million consumers, and is also just 90 minutes west of Boston.
The company began stocking the facility with Barramundi fingerlings from Australian hatcheries in March 2004.
Stocking of the facility is now occurring at a rate of 60,000 fingerlings per month, with the company expecting production to climb to a rate of 360 tons per annum in 2005.
The company plans for fish stocking to increase to 100,000 fingerlings per month, with resulting production rising to an annual rate of some 500 to 700 tons per annum, by 2005/06.
At this level, the company's output will equate to more than half of Australia's published 2001/02 Barramundi production.
The board believes that there is potential for expansion beyond these levels, given the US demand for quality fish.
Directors say that environmental and market demands dictate that more and more of the fish consumers eat will be grown using sustainable, landbased, aquaculture systems.
"We believe the large-scale production system at the facility can deliver product at competitive prices.
"The acquisition of the technical patents, and the experience of our staff will allow for expansion across the USA, without royalty or other payments, directors declared.
BACKGROUND **********
Australis Aquaculture was listed on August 4.
The company's production facility is strategically located between New York City and Boston in north-east USA, on the outskirts of the historic tourist town of Turner's Falls in Western Massachusetts.
The location is an attractive base for cost-effective distribution to major markets.
Aquaculture operations commenced on the site in 1988 and the current plant has since its construction in 1992 evolved to become the largest recirculation indoor fish production facility in the US
The plant has been operating almost continually for over 10 years producing different species and is staffed by experienced personnel.
The facility has never had a major loss of fish caused by system failure or disease.
Production begins with high quality Australian broodstock.
Batches of baby fish called fingerlings are then flown from the Australian hatchery to our American aquaculture plant.
The fingerlings are nurtured in grow-out tanks at the Turner's Falls plant.
As they grow out they are graded and placed into tanks that keep fish of similar size together until they reach market size.
Barramundi is Aboriginal for large scaled fish. Its scientific name is Lates calcarifer.
The species are are native to northern Australia's warm waters.
They live in various marine environments from muddy water in billabongs and rivers to pristine open oceans at various temperatures.
This environmental heritage gives Barramundi the robustness needed to be a good aquaculture species.
Barramundi are fast growing and exceptionally hardy in a wide range of conditions, which makes them ideal for aquaculture.
They have already proven a successful aquaculture species in Australia.
They are exceptionally large, good looking fish and can grow to a weight of 60kg and two metres in length.
Barramundi are regarded as a high-end premium species by top chefs and diners throughout the world because of their outstanding appearance, white flesh, mild taste and well-defined bones.
Australian Barramundi are extremely versatile for grilling, pan frying, deep frying, baking or making sashimi.
Barramundi are perceived as a "sexy" product in a market seeking novelty and quality.
