I was just doing a bit of maths regarding the companies current revenue. In their previous announcement in january they have stated that the dairy agreement is executed and commenced milk production in capel after buying 418 cows outright in cash. So its easy to say the cows they selected are milk producing(as they choose the cows from the existing herd) and if you calculate the milk they produced over three months and their revenue would be approximately as follows.
*418 Cows with approximate production capacity of 30 litre /cow.
*90 day period from January first week.
*Milk produced over the period : 418 x 30 x 90= 1128600 Litres.
*Average farm gate price 50 cents/ litre.
*The revenue from milk would then be 1128600/2 = $564300.
Thats half a million from the start up and we don't know about the rebate they have got from GreenLake at the moment suppose its like 15 cents per litre that will reduce the expenses and increase the net margin.
Another thing is that in here many people are worried about the green lake agreement only and in my opinion thats a narrow point of view. As the company said it is actually exploring system5 farming opportunities in different locations including capel. Now you need to understand capel is not a system 5 farm at the moment and they are looking at changing the farm model to system 5 in capel as well. That explains that they are still on deal with green lake. With regard to announcement you have to wait a week or so because as far as the company is concerned green lake is just a start up and small part of the overall project and once other deals are settled they will inform the market with all the good news. Hang in guys ,don't loose your patience and its a good time to accumulate at these lower prices. As I previously said in my posts the company wants stable disciplined holders instead of short termers and quick profit takers.
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