1AG 0.00% 0.5¢ alterra limited

Simple Sums

  1. 57 Posts.
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    5 hectares planted, with crop expected Oct 2022, so no revenue until then.
    The remaining 300 hectares to be done in the next three years, so increase in revenue steadily as those trees come online and start producing.
    Lets just guess here and say all trees pumping out fruit by end of 2027.

    Revenue for Oct 2022 at say, $5.50 a kg (low end)

    1 hectare = 28 tonnes therefore 5 hectares = 140 tonnes

    140 tonnes = 140,000kg (x $5.50)

    = $770,000 revenue for a company with a current market cap of $7.77m - something weirdly beautiful seeing all them 7's. No doubt between now and then with no real share market updates to come apart from when the trees start producing, share price may dwindle down to the low 2-3c's. And will be prime time to buy in

    NOW fast forward to those patient long term holders.

    End of Oct 2027, a mere 6 years away. 300 hectares @ 28 tonne = 8,400 tonnes.

    Lets hope by then Alterra have locked in some good export prices whilst still being open to Australian market and price is now at $9.50 a kg on average between the two.

    8,400,000kgs x $9.50kg = $79,800,000. This is revenue YEAR 1 for a 30 year project. Taking into account paying off some loans, operating costs etc etc, lets just say maybe a decent $70,000,000 is made that year - so we have here a 100x bagger.

    Lord willing no crazy weather / bugs to kill the plantation - this place could be a very good long term investing with low risk. For patient holders that is that aren't wanting to see crypto like bull market runs each morning! aha

 
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Currently unlisted public company.

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