Sorry but don't agree with that. You've just made some totally unsubstantiated claims without any reference or background.
Are you a cotton farmer? What figures do you think should be plugged in?
I based my comments on something the NSW DPI put out for the variable costs for irrigated cotton grown in southern NSW. One of their analysts told me that the figures should not be too far off if applied to the Tandou Farm.
The estimates they had out there in late last year was variable costs of slightly under $3000 per hectare. Using that figure and allowing interest on working capital of about $1.5m I reckon the profit before any depreciation or taxes should be around $4m to $4.5m. There may be some other costs but surely not enough to drop the bottom line by a half to $2.3m.
I still think that they have accounted for most of the costs but not all of the revenue in the guidance figure they put out.
TAN Price at posting:
42.5¢ Sentiment: Hold Disclosure: Held
