MRG has been awfully quiet about the elephant in the room. WATER!
When will they update the market with the cost of temporary water purchases?
on my estimates with 1200ha planted of DVF plus there is the citrus and table grapes their could be 1500ha planted at a minimum of 8megs per ha that is a 12,000ml requirement at $970 per ml. that's about $12m dollars.
now to be fair they have long term leases in place from which I've heard is Victorian water and on an allocation of 38%. So the shortfall is closer to 8000ml. still $8m worth of water which I'm pretty sure they don't have in cash or available.
what's even more worrying is that lower Murray water expects next years allocations to be 10 to 20% next season assuming average rainfall. what will temporary prices open at next season? my bet is $1400.
Get ready for another raise (4c) and another sore bum.
if you're a holder start praying for rain as they will be in administration by August 2020 if it doesn't rain.
