ferret's stock to watch: aaq

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)
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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.

END

Copyright © 2004 RWE Australian Business News. All rights reserved.

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