past, present, future

No doubt the company got a number of key things wrong in this first half;
1 - not keeping the market suitably informed as problems arose (hopefully lesson learnt)
2 - change of feed regime for Kingfish which failed to generate biomass growout. As such incurring cost for no commercial advantage. This programme was under control of 3rd party 'expert'. Issue here was that company needed to wrest control back earlier than they did when they realized there was a problem. Reckon this would be bulk of difference between $14.2 m loss and my forecast $7m loss.
3) and on top of that they have had problems on the Tuna spawning. Trying to bring spawning forward from March last year to Jan-Feb. Haven't had continuous spawning over last month so 10m fertlised eggs captured to date bs 50m last year.
4) bacterial infection in their rotifer feed system that then undermined ability to get larval stage to juveniles.

So yes a list of failures that has undermined credibility of management. However not to the extent of market reaction.
- kingfish feed regime sorted at start of this year and biomass gains being seen
- feed regime for tuna larva cleaned up
- tuna breeding pairs still spawning - don't know if this will get a cohort into the water next 2mths
- company will use pools to grow up tuna fingerlings for upto next 6 mth
- new hatchery being finished - still think 100,000 fingerlings next yr doable

So lost year and DCF wil be hit. Cash management important. Company thinks they can manage through to 2011 spawning.

((Based off Patersons report))