NZK - NZ King Salmon

[Recaster]

Looked at the interims back in early Feb. Massive negative EBIT and a 13.5 mn forward contract closure producing a positive operating cash flow when it would have been negative.

Put the unrealised gain on biologicals $30.7 mn further down the revenue statement.

Fish deaths are way up apparently which is why even though GAAP allows it you don't put unrealised gains on biologicals above the EBIT line.

The signs were there.

The announcement points out positive pro forma EBITDA. This is really a nonsense measurement IMHO although it's popular (for obvious reasons). Depreciation is real.

Will have the annuals' analysis up a few days after they publish the financial statements.

In the mean time here's Feb's very basic interim analysis:

https://recastinvestor.substack.com/p/basic-recast-analysis-new-zealand/comments

[winner69]

$60m to be raised ..... 2.85 for 1 at 15 cents

Says TERP is 33 cents (last close 86 cents)

Seems pretty desperate stuff

Maybe a punting opportunity coming up

[percy]

$60m to be raised ..... 2.85 for 1 at 15 cents

Says TERP is 33 cents (last close 86 cents)

Seems pretty desperate stuff

Maybe a punting opportunity coming up

Take care,you do not want to end up dead in the water too.

[Entrep]

First decent bid at 50c.

https://c.tenor.com/cDcNocnnUD0AAAAM/stocks-crash.gif

[Rawz]

First decent bid at 50c.

https://c.tenor.com/cDcNocnnUD0AAAAM/stocks-crash.gif
LOL - love the gif

[iceman]

I don't think the problem for NZK are low demand or low prices ...

Of course not. NZK has been a disaster in the making for several years and record market conditions make little or no difference. This has been uninvestible for several years.

[Joshuatree]

And yet Craig's kept picking it!

[nztx]

$60m to be raised ..... 2.85 for 1 at 15 cents

Says TERP is 33 cents (last close 86 cents)

Seems pretty desperate stuff

Maybe a punting opportunity coming up


How do reckon this one would fly if someone taped wings on it ? ;)

or if Robbo could find a half full pot somewhere to give it a large loan it could never ever hope to pay back .. :)

[Recaster]

They actually lost around $114.5 mn for the year and then mitigated this with a $41.3 mn unrealised 'fair value gain' on biological assets (fish).

Subtract off a tax credit (might never be used) of $14.4 mn and we're looking at a loss of $128.9 mn.

A total blood bath in other words.

Another forward contract early closure to bail out the operating cash flow. How does that work I wonder? Seems to come to the rescue every reporting period.

Jarden's are underwriting. Can't find any information on their fee even in the offer document. I bet it's huge.

Rights at a record discount to heads at 15 cents.

Receivership might be a better option.

[Balance]

They actually lost around $114.5 mn for the year and then mitigated this with a $41.3 mn unrealised 'fair value gain' on biological assets (fish).

Subtract off a tax credit (might never be used) of $14.4 mn and we're looking at a loss of $128.9 mn.

A total blood bath in other words.

Another forward contract early closure to bail out the operating cash flow. How does that work I wonder? Seems to come to the rescue every reporting period.

Jarden's are underwriting. Can't find any information on their fee even in the offer document. I bet it's huge.

Rights at a record discount to heads at 15 cents.

Receivership might be a better option.

Receivership?

No wonder NZ as a country has completely lost control of the banking & forestry sector into foreign hands.

All short term thinking.

[bull....]

$60m to be raised ..... 2.85 for 1 at 15 cents

Says TERP is 33 cents (last close 86 cents)

Seems pretty desperate stuff

Maybe a punting opportunity coming up

not too good a punt when there still trading so high , average price be to high

[Recaster]

Receivership?

No wonder NZ as a country has completely lost control of the banking & forestry sector into foreign hands.

All short term thinking.

Fair point. I tend to just look at the numbers.

[Recaster]

60 cents this morning. Dog tucker.

[Shareguy]

A wise man said to me “ never invest in any company that makes most of its money from food.”You only need to look at my food bag, Sanford, A2 milk, New Zealand king salmon and see that advice was good.

I have never been a shareholder in New Zealand king salmon but after a brief look at the capital raise announcement I feel sorry for all the existing shareholders. They are being asked to stump up money when the issues of fish mortality might be fixed “if” approval for the new farm is given. If they dont get approval and nz continues to have high water temperatures which is predicted to happen, then you might be throwing more money in for nothing. Will there be a future capital raise if they are successful in the new farm consent. I also noticed that a number of the existing farms consents expire in the next two years.

The reason this is so discounted in my opinion is because the main shareholders set the price for the risk involved. Good luck to shareholders. I think you are going to need it….

[iceman]

A wise man said to me “ never invest in any company that makes most of its money from food.”You only need to look at my food bag, Sanford, A2 milk, New Zealand king salmon and see that advice was good.

I have never been a shareholder in New Zealand king salmon but after a brief look at the capital raise announcement I feel sorry for all the existing shareholders. They are being asked to stump up money when the issues of fish mortality might be fixed “if” approval for the new farm is given. If they dont get approval and nz continues to have high water temperatures which is predicted to happen, then you might be throwing more money in for nothing. Will there be a future capital raise if they are successful in the new farm consent. I also noticed that a number of the existing farms consents expire in the next two years.

The reason this is so discounted in my opinion is because the main shareholders set the price for the risk involved. Good luck to shareholders. I think you are going to need it….

I take it that "wise man" wasn't anyone from the Talley family, that invest near only in food and have done bloody well from it. My best performer over the last 2 years on the NZ market has been meat company SFF, with SP up 260% and fully imputed dividends over 20% combined in the last 2 years.
I've also made very good money in ATM & SAN but been out of both for some years now. Never been in NZK.
Not sure how "wise" that guy was !

[Sideshow Bob]

60 cents this morning. Dog tucker.

Actually I'd expect probably their pet products are probably one of their shining lights.....

[Goose]

I take it that "wise man" wasn't anyone from the Talley family, that invest near only in food and have done bloody well from it. My best performer over the last 2 years on the NZ market has been meat company SFF, with SP up 260% and fully imputed dividends over 20% combined in the last 2 years.
I've also made very good money in ATM & SAN but been out of both for some years now. Never been in NZK.
Not sure how "wise" that guy was !

Yes - the food industry is pretty broad...Restaurant Brands is another obvious example of a great investment in a food business.

[percy]

A wise man said to me “ never invest in any company that makes most of its money from food.”You only need to look at my food bag, Sanford, A2 milk, New Zealand king salmon and see that advice was good.

I have never been a shareholder in New Zealand king salmon but after a brief look at the capital raise announcement I feel sorry for all the existing shareholders. They are being asked to stump up money when the issues of fish mortality might be fixed “if” approval for the new farm is given. If they dont get approval and nz continues to have high water temperatures which is predicted to happen, then you might be throwing more money in for nothing. Will there be a future capital raise if they are successful in the new farm consent. I also noticed that a number of the existing farms consents expire in the next two years.

The reason this is so discounted in my opinion is because the main shareholders set the price for the risk involved. Good luck to shareholders. I think you are going to need it….

Sounds like a fool to me.Food production is the back bone of NZ economy
The top exports of New Zealand are Concentrated Milk ($5.92B), Sheep and Goat Meat ($2.57B), Frozen Bovine Meat ($2.1B), Rough Wood ($2.05B), and Butter ($1.89B

[stoploss]

A wise man said to me “ never invest in any company that makes most of its money from food.”You only need to look at my food bag, Sanford, A2 milk, New Zealand king salmon and see that advice was good.

I have never been a shareholder in New Zealand king salmon but after a brief look at the capital raise announcement I feel sorry for all the existing shareholders. They are being asked to stump up money when the issues of fish mortality might be fixed “if” approval for the new farm is given. If they dont get approval and nz continues to have high water temperatures which is predicted to happen, then you might be throwing more money in for nothing. Will there be a future capital raise if they are successful in the new farm consent. I also noticed that a number of the existing farms consents expire in the next two years.

The reason this is so discounted in my opinion is because the main shareholders set the price for the risk involved. Good luck to shareholders. I think you are going to need it….
I think Coca Cola has gone ok over the years ....
In any case think the listed entity of KFC has gone great guns on the NZX ....

[Sideshow Bob]

I think it is like any company - well-managed, strong companies with a sustainable advantage in the food sector are profitable just like in other sectors.

People gotta eat!! :)

[Balance]

A wise man said to me “ never invest in any company that makes most of its money from food.”You only need to look at my food bag, Sanford, A2 milk, New Zealand king salmon and see that advice was good.

Used to be a saying as well to NOT invest in anything which eats, swims or have 4 legs.

Was true when many fishing, farming and bloodstock companies were listed on the NZSE.

They were suited really more to private ownership.

[bull....]

A wise man said to me “ never invest in any company that makes most of its money from food.”You only need to look at my food bag, Sanford, A2 milk, New Zealand king salmon and see that advice was good.

I have never been a shareholder in New Zealand king salmon but after a brief look at the capital raise announcement I feel sorry for all the existing shareholders. They are being asked to stump up money when the issues of fish mortality might be fixed “if” approval for the new farm is given. If they dont get approval and nz continues to have high water temperatures which is predicted to happen, then you might be throwing more money in for nothing. Will there be a future capital raise if they are successful in the new farm consent. I also noticed that a number of the existing farms consents expire in the next two years.

The reason this is so discounted in my opinion is because the main shareholders set the price for the risk involved. Good luck to shareholders. I think you are going to need it….

might be true for next year with issues such as the war in ukraine making fertilizer / potash etc etc so expensive and in short supply and inflation costs increasing the cost of production. not a good recipe for sales and profits maybe next yr

[BlackPeter]

A wise man said to me “ never invest in any company that makes most of its money from food.”You only need to look at my food bag, Sanford, A2 milk, New Zealand king salmon and see that advice was good.

...


Hmm - while the companies you mentioned are currently all in the doldrums, I don't think that their main problem is that they make most of their money from food.

If we start with NZK - their main problem is that they ignored climate change. They could be huge money spinners if they would not grow their fish in too warm waters. A good company would know which parameters are relevant for their production - and even a brain dead dinosaur would know by now what impact global warming will have on anyway too warm waters.

Looking at the others - A2M had this one trick pony problem, MFB was listet as a dud with little growth perspective and lots of debts (as many non food companies as well: e.g. Feltex, Orion Health, MPG), and Sanford made just many hard to understand business decisions related to lack of managerial oversight and lack of due diligence.

Food producing was not the problem for any of the companies your provided ... and hey, I can think about many very profitable food producing companies: (in no particular order): McDonalds, RBD, Coca Cola, Nestle, Danone, JBS (well, profitable at times), and there are so many more. Probably all of us can think about very successful food producers (not necessary listed).

The real problem for NZK, A2M and Sanford is lack of competence to run a successful business - most likely unsuitable management and a board sleeping for too long (bad governance) ... and these things are not exclusive to food producing companies. And MFB - probably just sold under the wrong pretences.

BTW: before I forget it - currently holding Seeka and quite happy with my investment :) - yes, they make their money with food (mainly Kiwifruit and Avocados) as well.

[TheHunter]

If we start with NZK - their main problem is that they ignored climate change. They could be huge money spinners if they would not grow their fish in too warm waters. A good company would know which parameters are relevant for their production - and even a brain dead dinosaur would know by now what impact global warming will have on anyway too warm waters.

Mr Peter, it appears you've spent more time writing this comment than reading up on the company.

Here's a couple of places to get you started:
https://www.mpi.govt.nz/dmsdocument/16162-Potential-relocation-of-salmon-farms-in-the-Marlborough-Sounds
https://www.kingsalmon.co.nz/open-ocean-blue-endeavour/

You can even read a couple of slides on the topic in the latest investor presentation on what they're doing in their current locations to mitigate mortality. It would almost appear that they're well aware of the issue. Go figure.

The decision on where they farm sits with government (not NZK) ;)

[nztx]

Hmm - while the companies you mentioned are currently all in the doldrums, I don't think that their main problem is that they make most of their money from food.

If we start with NZK - their main problem is that they ignored climate change. They could be huge money spinners if they would not grow their fish in too warm waters. A good company would know which parameters are relevant for their production - and even a brain dead dinosaur would know by now what impact global warming will have on anyway too warm waters.

Looking at the others - A2M had this one trick pony problem, MFB was listet as a dud with little growth perspective and lots of debts (as many non food companies as well: e.g. Feltex, Orion Health, MPG), and Sanford made just many hard to understand business decisions related to lack of managerial oversight and lack of due diligence.

Food producing was not the problem for any of the companies your provided ... and hey, I can think about many very profitable food producing companies: (in no particular order): McDonalds, RBD, Coca Cola, Nestle, Danone, JBS (well, profitable at times), and there are so many more. Probably all of us can think about very successful food producers (not necessary listed).

The real problem for NZK, A2M and Sanford is lack of competence to run a successful business - most likely unsuitable management and a board sleeping for too long (bad governance) ... and these things are not exclusive to food producing companies. And MFB - probably just sold under the wrong pretences.

BTW: before I forget it - currently holding Seeka and quite happy with my investment :) - yes, they make their money with food (mainly Kiwifruit and Avocados) as well.


No complaints with RBD - BP, or haven't you ventured into that one ? :)

[nztx]

I guess that the FISH were a bit slow in telling NZK Directors that they were feeling unwell in large numbers
and the paid minders didn't think they were paid to notice a great number of their captives swimming upside down ;)

Perhaps NZK may have to look at holding smarter more communicative Fish captive ? ;)

Must explain why no-one knew that the enclosures were looking bare of much of the kicking swimmers :)

Probably a fairly different story when the paid compliment of minders & mostly absent Directors fronted up
for their prescribed wage & directing the show payouts ;)

Could be interesting when the stakeholders decide to become mostly absent when the empty
contributions tin is passed around to maybe fund another repeat of the same saga or maybe not ;)

[Recaster]

Hard to know where this company will end up, so much depends on the success of the Blue Endeavour project. Couldn't find any projections for it but had a good look at the historical financials up to 31.1.22:

https://recastinvestor.substack.com/p/update-new-zealand-king-salmon-nzknzx

Comments and suggestions gratefully received. Cheers.

[Entrep]

Hard to know where this company will end up, so much depends on the success of the Blue Endeavour project. Couldn't find any projections for it but had a good look at the historical financials up to 31.1.22:

https://recastinvestor.substack.com/p/update-new-zealand-king-salmon-nzknzx

Comments and suggestions gratefully received. Cheers.

Great article, thanks.

So, if the Govt declines Blue Endeavour, the company is pretty much finished right? That has to mean it has a pretty good chance of approval then? Would be a bad look to kill the company unless they have some pretty darn good reasons not to grant approval.

[Rawz]

I had some of the double maple smoked regal salmon for dinner tonight. Doing my bit to keep this company afloat..

[Recaster]

Great article, thanks.

So, if the Govt declines Blue Endeavour, the company is pretty much finished right? That has to mean it has a pretty good chance of approval then? Would be a bad look to kill the company unless they have some pretty darn good reasons not to grant approval.

Thanks.

They still have a reasonable amount of equity as at balance date 2 1/2 months ago. But the debt is current.

Also I wonder if they are raising enough for the Blue Endeavour project. Perhaps they can borrow more.

I don't know if the company would be finished if approval is not granted. Profitability seems a tad low :-).

Closed at 46 today.

[bull....]

looks like the sharesis folks getting in on the action.... could be onto something

[bull....]

Hard to know where this company will end up, so much depends on the success of the Blue Endeavour project. Couldn't find any projections for it but had a good look at the historical financials up to 31.1.22:

https://recastinvestor.substack.com/p/update-new-zealand-king-salmon-nzknzx

Comments and suggestions gratefully received. Cheers.

i may have missed it when looking at your analysis
but a suggestion you may want to add the farm gate price in as an analysis point

[Joshuatree]

Brilliant idea, splice a few chicken genes on and have the salmon running around in a paddock:t_up:

[Recaster]

First time I've heard the term. A quick Google check and it is indeed used in the salmon industry.

Towards the bottom of the page of this link:

https://salmonbusiness.com/high-harvest-activity-but-price-pressure-on-the-heavy-salmon/

I've seen it written as farmgate in Europe and farm-gate in the US.

So yes it would be a good analysis point if it's available.

There are some quite good comments in today's Chris Lee Newsletter on NZK:

https://www.chrislee.co.nz/taking-stock

These comments are of a more general nature and summarise things quite well I thought.

Hope he doesn't mind me linking to it here.

[Sideshow Bob]

Or just a bit of vegan salmon...... ‘World’s First’ Vegan Salmon Fillet Set To Take On The $586 Billion Seafood Industry - Plant Based News (https://plantbasednews.org/lifestyle/food/plant-based-salmon-fillet/)

[Muse]

First time I've heard the term. A quick Google check and it is indeed used in the salmon industry.

Towards the bottom of the page of this link:

https://salmonbusiness.com/high-harvest-activity-but-price-pressure-on-the-heavy-salmon/

I've seen it written as farmgate in Europe and farm-gate in the US.

So yes it would be a good analysis point if it's available.

There are some quite good comments in today's Chris Lee Newsletter on NZK:

https://www.chrislee.co.nz/taking-stock

These comments are of a more general nature and summarise things quite well I thought.

Hope he doesn't mind me linking to it here.

Gosh he is a fine writer - thanks for posting enjoyed that. I need to start reading his articles again.

He is James Lee’s dad (CEO of jarden) - a proud pop.

[bull....]

ive decided to have a punt on this as a recovery proposition and as a longer term hold for me , been buying a few all week

as an aside heres a update out today by a salmon farmer in aus

record sales and high prices

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02512211-2A1369610?access_token=83ff96335c2d45a094df02a206a 39ff4

and i think tomorrow last day to qualify for the rights issue

[Shareguy]

Good luck on that Bull. I think Clean seas only do Kingfish though.

[Waiuta]

Very interesting article, thanks.

[bull....]

Good luck on that Bull. I think Clean seas only do Kingfish though.

lol some serious brain fog

[Shareguy]

lol some serious brain fog

You might do well if price stays around terp of $.33

Based on yesterdays close of $.47 say purchase of 10,000 shares would give you average cost of $.23 and give you 38500 shares. If you applied for full xtra entitlement of rights not taken up at $.15 you would have 67000 shares with average cost of $.20

It seems to be hinging on blue endeavour. If directors and main shareholder are prepared to stump up odds must be good…..you would think. A lot of luck needed with this one.

[percy]

lol some serious brain fog

A real pearler............next you will be looking at ATP..asx...lol

[bull....]

You might do well if price stays around terp of $.33

Based on yesterdays close of $.47 say purchase of 10,000 shares would give you average cost of $.23 and give you 38500 shares. If you applied for full xtra entitlement of rights not taken up at $.15 you would have 67000 shares with average cost of $.20

It seems to be hinging on blue endeavour. If directors and main shareholder are prepared to stump up odds must be good…..you would think. A lot of luck needed with this one.

im probably more in for a recovery trade much like chris lee report was suggesting than a short term on this one but i see your point and it makes sense so could work for both short and long term trades

and it is a risk that the recovery doesnt eventuate ... but thats the rub to making big bucks

[bull....]

A real pearler............next you will be looking at ATP..asx...lol

yes be hoping the nzk chart looks like that after the re-cap

[Entrep]

I dont see a way out of this unless Blue Endeavour gets the green light. Otherwise water will get warmer and more fish will die.

[Lola]

Gosh he is a fine writer - thanks for posting enjoyed that. I need to start reading his articles again.

He is James Lee’s dad (CEO of jarden) - a proud pop.

If you want to be reminded of what a great guy he thinks he is, well go for it. The big man has a very selective memory.

[BlackPeter]

I dont see a way out of this unless Blue Endeavour gets the green light. Otherwise water will get warmer and more fish will die.

Agree. Water (in the sounds) will get warmer and more fish will die. Blue Endavour is the only straw they still can try to grasp, and they only need environmental approval (not a given), funding (not included in this CR) and obviously they will need to overcome a lot of yet unknown technical problems (remember - they are the first to try this on high sea). But hey, how hard can it be? And sure, IF they do succeed the rewards might be ok ...

[Entrep]

Big dump. Officially my worst investment (houses, shares, crypto, etc) ever now!

https://media.giphy.com/media/yUI3a7RwLhOFy/giphy.gif

[ralph]

Big dump. Officially my worst investment (houses, shares, crypto, etc) ever now!

https://media.giphy.com/media/yUI3a7RwLhOFy/giphy.gif
Big thing is to learn from these mistakes I have .It costs to learn but only the once I hope .
On to the next one

[bull....]

Big dump. Officially my worst investment (houses, shares, crypto, etc) ever now!

https://media.giphy.com/media/yUI3a7RwLhOFy/giphy.gif

if you think the company not going bust or if it can correct its mistakes , then surely it makes sense to average your price down thru the rights issue ?

[Entrep]

if you think the company not going bust or if it can correct its mistakes , then surely it makes sense to average your price down thru the rights issue ?

Yep, will be participating for sure

[winner69]

Gaynor with history of salmon on NZX

NZ Salmon, Regai Salmon and NZ King Salmon …….and a tomato company …and throws in mention of Blue Chip, Aquaria, SeaDragon and other illustrious names.

Prob paywalled but interesting

https://businessdesk.co.nz/article/opinion/nz-king-salmon-swimming-against-the-tide

[herbert240]

Yep, will be participating for sure

Still thinking that way Entrep?

[Entrep]

Still thinking that way Entrep?

Yep 100%, I still believe in Blue Endeavour and that even if I exit, it will be for more than the rights price.

[herbert240]

Yep 100%, I still believe in Blue Endeavour and that even if I exit, it will be for more than the rights price.

Yes, after doing research which I should have done much earlier I am inclined to agree with your sentiments Entrep. To save me doing more "digging" have you got any idea when approval will be given or not?

[Entrep]

Yes, after doing research which I should have done much earlier I am inclined to agree with your sentiments Entrep. To save me doing more "digging" have you got any idea when approval will be given or not?

Was meant to be March this yer, now pushed to middle of the year.

[herbert240]

Was meant to be March this yer, now pushed to middle of the year.

Thanks, must say it makes me a little nervous when I think of the mob who will make the call.

[Recaster]

Odd that the rights are not being quoted on either exchange.

[Balance]

Odd that the rights are not being quoted on either exchange.

Non tradable rights.

[Recaster]

Non tradable rights.

Yes, seems strange they took this option.

Wonder how this affects the trading pattern in the head shares. How will typical (varying degree) late stage convergence of heads and rights prices not being possible mean that heads will remain higher than they would have?

We won't know.

[Balance]

Yes, seems strange they took this option.

Wonder how this affects the trading pattern in the head shares. How will typical (varying degree) late stage convergence of heads and rights prices not being possible mean that heads will remain higher than they would have?

We won't know.

I believe you have hit the nail on the head.

[winner69]

Non tradable rights.

Can trade off market ....maybe bigger boys do a bit of that

As the man from the Shareholders Association says "It looks like a non-renounceable offer in drag to me."

All a big ploy for under writers to make a buck

[Entrep]

Balance, what's your take on NZK? Do you hold?

[herbert240]

Balance, what's your take on NZK? Do you hold?

Or anyone???

[bull....]

JBS think salmon farming in aus is worth it and is willing to assume the risks associated with it

A company as big and burly as JBS is typically not interested in throwing its money behind marginal or uncertain businesses

https://www.abc.net.au/news/rural/2021-11-02/jbs-huon-takeover-points-to-maturing-aussie-aquaculture-industry/100584728

[percy]

JBS think salmon farming in aus is worth it and is willing to assume the risks associated with it

A company as big and burly as JBS is typically not interested in throwing its money behind marginal or uncertain businesses

https://www.abc.net.au/news/rural/2021-11-02/jbs-huon-takeover-points-to-maturing-aussie-aquaculture-industry/100584728


Well sited Salmon farms in NZ around Stewart Island and South Island hydro canals do well.
Marlborough Sounds waters are too warm.
Cook Straight waters would work,but the set up costs,and ongoing costs would be challenging.
NZK do not have approval for such a farm.If they do get approval they will have a future.If not they will be dead in the water.

[Balance]

Balance, what's your take on NZK? Do you hold?

Do not hold.

May consider if they can get Blue Endeavor through - otherwise, NZK is in terminal decline.

Recall Direct Capital buying into NZK in 2009 for $50m and they were lucky to get out 8 years later in 2017 via the IPO for around the same amount!

Company stated their financial position was strong and sound when they reported their financial results for F21 - a year later and they are having to do a heavily dilutary capital raising - says a lot about the nature of the industry.

NZK is an excellent company, doing the best in an industry with too many uncontrollable variables - an industry which has bugger all government support to survive & thrive imo.

[iceman]

Salmon farming companies around the World are creaming it at the moment with prices having reached pretty insane levels this year https://salmonprice.nasdaqomxtrader.com/public/report;jsessionid=CC939B90BC0051968F8BE19AA49E8FDC ?0

NZK unfortunately is an uninvestable cot case as far as I am concerned and in terminal decline as Percy and Balance say above. Blue Endeavour will not change that.

[bull....]

reading there annual report
obviously demand is good , sales revenue is good and salmon pricing is good even looking ahead to future pricing
:scared: wow big blow out in costs last yr alright.
like they say they better rein in there cost base quite a bit since there down sizing some what

[Ottiehund]

Do not hold.

May consider if they can get Blue Endeavor through - otherwise, NZK is in terminal decline.

Recall Direct Capital buying into NZK in 2009 for $50m and they were lucky to get out 8 years later in 2017 via the IPO for around the same amount!

Company stated their financial position was strong and sound when they reported their financial results for F21 - a year later and they are having to do a heavily dilutary capital raising - says a lot about the nature of the industry.

NZK is an excellent company, doing the best in an industry with too many uncontrollable variables - an industry which has bugger all government support to survive & thrive imo.

Excellent at blowing their own trumpet at least - the current situation is a case of bad management decisions coming back to bite them. Locations with climate issues and problems compounded by what appears to be over-stocking.

I agree with whoever above said it is uninvestable.

[bull....]

Excellent at blowing their own trumpet at least - the current situation is a case of bad management decisions coming back to bite them. Locations with climate issues and problems compounded by what appears to be over-stocking.

I agree with whoever above said it is uninvestable.

over stocking in warm waters is asking for trouble . i dont know i agree with the uninvestable comment though. i would rather say much higher risk investing

[Ottiehund]

Maybe, yes, Higher Risk at a minimum. I also wonder about Blue Endeavor, and seem to recall some years back stories of tuna ranchers in Oz (South Aust?) who lost all their stock in storms, and Cook Straight is not a kind patch of water.

[bull....]

Maybe, yes, Higher Risk at a minimum. I also wonder about Blue Endeavor, and seem to recall some years back stories of tuna ranchers in Oz (South Aust?) who lost all their stock in storms, and Cook Straight is not a kind patch of water.

think if the nets are sturdier that saves the loss on stock also rough seas might flush the poo away nicely.

gezz director fee's went up a lot last yr , im sure they dont want those going away in a hurry

[Entrep]

Does the reminder to participate email I just received mean the raise is going poorly?

[herbert240]

Does the reminder to participate email I just received mean the raise is going poorly?

Hard to say really Entrep. I think its "normal practice" to follow up.

[Entrep]

Hard to say really Entrep. I think its "normal practice" to follow up.

Yeah, I also realised that many people would wait until Thursday to apply.

[nztx]

Yeah, I also realised that many people would wait until Thursday to apply.


Sharesies shortfall fill up job due soon ? ;)

[RGR367]

The risk is obviously present but aquaculture is an industry I'm a sucker to have an exposure with. So I'm taking my full entitlement plus applying for 50% more. Gut feels it will be alright eventually :cool:

[Balance]

The risk is obviously present but aquaculture is an industry I'm a sucker to have an exposure with. So I'm taking my full entitlement plus applying for 50% more. Gut feels it will be alright eventually :cool:

Let’s hope do as NZ desperately needs a successful & thriving salmon farming industry.

King salmon variety is notoriously difficult to farm vs Atlantic salmon - only 2% of farmed salmon globally is king salmon.

[ralph]

Let’s hope do as NZ desperately needs a successful & thriving salmon farming industry.

King salmon variety is notoriously difficult to farm vs Atlantic salmon - only 2% of farmed salmon globally is king salmon.

If they throw enough money at it & relocate to Stewart Island they will have a chance

[BlackPeter]

Let’s hope do as NZ desperately needs a successful & thriving salmon farming industry.

King salmon variety is notoriously difficult to farm vs Atlantic salmon - only 2% of farmed salmon globally is king salmon.

Obviously much better fish species to farm ... Europe farms trouts - a great way to produce large amounts of great quality fish in an easy and efficient way. However - NZ prefers to leave this opportunity to others. We are clever - leave the easy business to Europe and America and farm salmon instead and lose money.

[Balance]

Obviously much better fish species to farm ... Europe farms trouts - a great way to produce large amounts of great quality fish in an easy and efficient way. However - NZ prefers to leave this opportunity to others. We are clever - leave the easy business to Europe and America and farm salmon instead and lose money.

That's incorrect - Europeans farm mostly Atlantic Salmon. Likewise, Chile and Australia. The Europeans do farm trout (freshwater) but it's a fraction vs farmed salmon.

NZ has successfully farmed King salmon for decades but now faces a crisis with warming water temperatures - something which can be overcome if the government allows more of the sea cages to be situated in deeper and colder waters (eg. Stewart Island & further out in Cook Straits).

[BlackPeter]

That's incorrect - Europeans farm mostly Atlantic Salmon. Likewise, Chile and Australia. The Europeans do farm trout (freshwater) but it's a fraction vs farmed salmon.

NZ has successfully farmed King salmon for decades but now faces a crisis with warming water temperatures - something which can be overcome if the government allows more of the sea cages to be situated in deeper and colder waters (eg. Stewart Island & further out in Cook Straits).

Which part of my post was incorrect?

I never said that they don't farm salmon in Europe as well, but they do farm trout, which we in NZ choose not to do. We even made laws forbidding trout farming - I guess, how dumb is it to forbid the production of cheap healthy and environmentally friendly quality food?

The part of Germany I come from had a lot of trout farming but I never said that they don't farm salmon in Europe as well ... of course, they do, but not in areas which are unsuitable for salmon farming (as NZK does).

Just checked the stats ... more than 20% of European fish farming is fresh water fish (I assume mainly trout and a bit of carp) and more than 30 % is seawater fish (I assume mainly salmon). The balance seems to be shellfish. Most European salmon farming happens in really cold waters (mainly around Scandinavia and Iceland), not in the South of Europe (which would be from the water temperature more comparable to Marlborough Sounds). Clever the Europeans, aren't they?

And yes - NZ Salmons board and management team allowed the company to establish their farms on highly unsuitable sites in waters with poor circulation, which was always too warm and clearly would not get colder with global warming. Scientists explained the impact of global warming for the last 50 years, but NZK's board must have had more important things to do than checking the science crucial for their business. Or did they just lack in mental processing the facts ... I don't know?

How is this the fault of the government and what is the confidence level that these dinosaurs thought through what the environmental impact of their newest toy of implementing a salmon farm on high sea might be?

Hopeless - NZK clearly has little environmental competence. Who wants to allow them to generate the next disaster?

[TFA]

Which part of my post was incorrect?

I never said that they don't farm salmon in Europe as well, but they do farm trout, which we in NZ choose not to do. We even made laws forbidding trout farming - I guess, how dumb is it to forbid the production of cheap healthy and environmentally friendly quality food?

The part of Germany I come from had a lot of trout farming but I never said that they don't farm salmon in Europe as well ... of course, they do, but not in areas which are unsuitable for salmon farming (as NZK does).

Just checked the stats ... more than 20% of European fish farming is fresh water fish (I assume mainly trout and a bit of carp) and more than 30 % is seawater fish (I assume mainly salmon). The balance seems to be shellfish. Most European salmon farming happens in really cold waters (mainly around Scandinavia and Iceland), not in the South of Europe (which would be from the water temperature more comparable to Marlborough Sounds). Clever the Europeans, aren't they?

And yes - NZ Salmons board and management team allowed the company to establish their farms on highly unsuitable sites in waters with poor circulation, which was always too warm and clearly would not get colder with global warming. Scientists explained the impact of global warming for the last 50 years, but NZK's board must have had more important things to do than checking the science crucial for their business. Or did they just lack in mental processing the facts ... I don't know?

How is this the fault of the government and what is the confidence level that these dinosaurs thought through what the environmental impact of their newest toy of implementing a salmon farm on high sea might be?

Hopeless - NZK clearly has little environmental competence. Who wants to allow them to generate the next disaster?


I think your comments are rather harsh considering the origins of NZK salmon farming go back to the early eighties. Not a lot of understanding or belief in climate change back then. Development of alternative sites has been in pipeline for a long time but regulatory barriers are a nightmare, Current government like most before them make big promises to overhaul the RMA to make it easier to progress things that they want (solve housing crisis, enable aquaculture industry to grow) however generally ends up in too hard basket.

[bull....]

I think your comments are rather harsh considering the origins of NZK salmon farming go back to the early eighties. Not a lot of understanding or belief in climate change back then. Development of alternative sites has been in pipeline for a long time but regulatory barriers are a nightmare, Current government like most before them make big promises to overhaul the RMA to make it easier to progress things that they want (solve housing crisis, enable aquaculture industry to grow) however generally ends up in too hard basket.

too true bp lacking understanding doesnt even know that king is better than alantic

[BlackPeter]

too true bp lacking understanding doesnt even know that king is better than alantic

Classic - bull picking a point which was never discussed and is irrelevant to the discussion but accusing me I don't know about it.

But hey - I assume you just want to demonstrate what people mean when they use the frequently used but highly un-PC term for bull droppings, don't you :p ?

Just wondering - do you happen to be a holder and need to take now the medicine you normally freely distribute to everybody else? Sometimes a change of perspective can be quite healthy ...

[Sideshow Bob]

NZKS completes rights offer - NZX, New Zealand’s Exchange (https://www.nzx.com/announcements/391757)

New Zealand King Salmon Investments Limited (NZX/ASX: NZK) (NZ King Salmon) is pleased to announce the successful closure of its NZ$60.1m underwritten 2.85 for 1 pro rata rights offer (Rights Offer). NZ King Salmon received strong shareholder support with applications totalling approximately NZ$50.3m, representing Eligible Shareholders electing to take up approximately 83.6% of their entitlements under the Rights Offer. The shares will be issued at a price of NZ$0.15 per share (or A$0.14 per share).

A total of NZ$60.1m was raised under the Rights Offer as announced on 13 April 2022. The proceeds of the equity raise will be used to deleverage NZ King Salmon’s balance sheet and provide liquidity and funding for medium term operating requirements.

Grant Rosewarne, NZ King Salmon Managing Director and CEO, said “NZ King Salmon is delighted with the level of take-up by its Eligible Shareholders in the Rights Offer.”

Settlement and allotment of new shares taken up under the Rights Offer is expected to occur on 12 May 2022, with ASX shares expected to commence trading on 13 May 2022. The new shares issued under the Rights Offer will rank equally with NZ King Salmon’s existing shares.

Shortfall
A shortfall of approximately NZ$9.8m worth of shares out of a total Rights Offer size of NZ$60.1m remains. The shortfall will be allocated in priority to retail shareholders who over-subscribed NZ$3.5m through the Rights Offer, with the remainder being taken up by the underwriter, Jarden, or its sub-underwriters.

For further information in respect of the Rights Offer, please refer to the investor presentation released to the NZX and ASX on 13 April 2022.

Ends

[bull....]

NZKS completes rights offer - NZX, New Zealand’s Exchange (https://www.nzx.com/announcements/391757)

New Zealand King Salmon Investments Limited (NZX/ASX: NZK) (NZ King Salmon) is pleased to announce the successful closure of its NZ$60.1m underwritten 2.85 for 1 pro rata rights offer (Rights Offer). NZ King Salmon received strong shareholder support with applications totalling approximately NZ$50.3m, representing Eligible Shareholders electing to take up approximately 83.6% of their entitlements under the Rights Offer. The shares will be issued at a price of NZ$0.15 per share (or A$0.14 per share).

A total of NZ$60.1m was raised under the Rights Offer as announced on 13 April 2022. The proceeds of the equity raise will be used to deleverage NZ King Salmon’s balance sheet and provide liquidity and funding for medium term operating requirements.

Grant Rosewarne, NZ King Salmon Managing Director and CEO, said “NZ King Salmon is delighted with the level of take-up by its Eligible Shareholders in the Rights Offer.”

Settlement and allotment of new shares taken up under the Rights Offer is expected to occur on 12 May 2022, with ASX shares expected to commence trading on 13 May 2022. The new shares issued under the Rights Offer will rank equally with NZ King Salmon’s existing shares.

Shortfall
A shortfall of approximately NZ$9.8m worth of shares out of a total Rights Offer size of NZ$60.1m remains. The shortfall will be allocated in priority to retail shareholders who over-subscribed NZ$3.5m through the Rights Offer, with the remainder being taken up by the underwriter, Jarden, or its sub-underwriters.

For further information in respect of the Rights Offer, please refer to the investor presentation released to the NZX and ASX on 13 April 2022.

Ends

surprised me how big the uptake is , big vote of confidence in the company.

[Entrep]

A shortfall of approximately NZ$9.8m worth of shares out of a total Rights Offer size of NZ$60.1m remains. The shortfall will be allocated in priority to retail shareholders who over-subscribed NZ$3.5m through the Rights Offer, with the remainder being taken up by the underwriter, Jarden, or its sub-underwriters.

Guess/hope I'll be getting my full 100% bonus entitlements I applied for then. Wording not 100% clear.

[iceman]

Guess/hope I'll be getting my full 100% bonus entitlements I applied for then. Wording not 100% clear.

Based on their announcement I think it’s clear you will get what you asked for !

[Sideshow Bob]

Based on their announcement I think it’s clear you will get what you asked for !

It wasn't fully subscribed so I think they will take whatever money they get from where ever. Jardens tidy up the rest.

[Balance]

It wasn't fully subscribed so I think they will take whatever money they get from where ever. Jardens tidy up the rest.

So Jarden is sitting on a nice big potential profit when they realized the underwritten shortfall shares - $6.3m or 42m shares at 15c.

At today's price of 20c, that's a cool $2.1m.

Wealth transfer from NZK shareholders to Jardens.

To be fair though, there's still a lot of water to flow through the sea cages before Jardens can realize their profit from selling down 42m shares!

[Entrep]

Well, with the 100% extra entitlement my average came waaaaaaaay down.

Now to hold on for Blue Endeavour ann.

[BlackPeter]

Well, with the 100% extra entitlement my average came waaaaaaaay down.

Now to hold on for Blue Endeavour ann.

Good luck with that. I think you will need it :scared:.

[bull....]

Well, with the 100% extra entitlement my average came waaaaaaaay down.

Now to hold on for Blue Endeavour ann.

announcement will move the price for sure. see the director notices out today , they must be confident in the announcement cause they brought plenty new shares

[Entrep]

announcement will move the price for sure. see the director notices out today , they must be confident in the announcement cause they brought plenty new shares

I think NZK leaks like a sieve.

[airedale]

I am not a holder, but I note that the guy who owns Akaroa Salmon is being interviewed on the Country Life program, National Radio Friday evening and Saturday morning 7 to 8 am.

[IAK]

New Zealand King Salmon reduces workforce by 139
https://i.stuff.co.nz/business/farming/aquaculture/128728620/new-zealand-king-salmon-reduces-workforce-by-139

[TheHunter]

New Zealand King Salmon reduces workforce by 139
https://i.stuff.co.nz/business/farming/aquaculture/128728620/new-zealand-king-salmon-reduces-workforce-by-139

NZK made a notable effort over the past decade to avoid redundancies via natural attrition & moving people within the company. $20m invested into farm re-location to support commercial growth and consequently jobs but not supported by govt. Unfortunate outcome for all.

[bull....]

NZK got no choice if they dont cut costs big time to reflect smaller operation the company wont last long.

[Entrep]

Interesting timing with a Blue Endeavour decision imminent

[Rawz]

Interesting timing with a Blue Endeavour decision imminent
Hope it’s not foreshadowing a negative decision..

[Sideshow Bob]

Will be years before production ex Blue Endevour comes into processing. Most are factory jobs so likely affected by current mortality levels and drop in volumes.

[BlackPeter]

Interesting timing with a Blue Endeavour decision imminent

Let's not forget that even granting the Blue Endevour permit would not mean a permit to print money for the company, but at best a permit to pour lots of new shareholders money into a never before done high risk project, which may or may not succeed.

If you like it is comparable to granting a mining permit to a new miner for an area where nobody knows the environmental risks nor the ore grades.

But even if blue endeavor gets its permit and succeeds - at best it would bring NZK back on a somewhat level playing field with other companies who choose their farming places a bit more diligently in the first place.

In my view - high risk with at best medium reward.

[Entrep]

Hope it’s not foreshadowing a negative decision..

I dont think so, as SB said, it will be years before BE comes on. Plus I guess this really ramps up the pressure on the authorities to approve.

[percy]

I dont think so, as SB said, it will be years before BE comes on. Plus I guess this really ramps up the pressure on the authorities to approve.

Sad seeing they have spent $20mil over the past 10 years trying to get consents.
Time and costs of consents is damaging too many companies..

[TFA]

Sad seeing they have spent $20mil over the past 10 years trying to get consents.
Time and costs of consents is damaging too many companies..

NZ is one of the worst GHG emitters in the work on a per capita basis due to our dependency on the dairy industry
Much talk from Wellington about need to transition to a green economy but doesn't translate to actions - NZK story proves this.

[IAK]

"The country's largest salmon producer says it is being forced to close farms and let go of staff due to warmer water temperatures brought on by climate change."

https://www.rnz.co.nz/news/national/467842/nz-king-salmon-to-close-farms-due-to-rising-sea-temperatures from RNZ.

[Entrep]

BE pushed back to September


The outcome of New Zealand King Salmon's application to build an open ocean farm in the Cook Strait - called Blue Endeavour - is expected in September.

[bull....]

BE pushed back to September

more koha needed

[Recaster]

Another capital raise will be needed if Blue Endeavour is approved.

https://www.stuff.co.nz/business/opinion-analysis/128751989/nz-king-salmon-shares-have-lost-71-of-their-value-this-year--5-things-you-should-know#comments

[BlackPeter]

Another capital raise will be needed if Blue Endeavour is approved.

https://www.stuff.co.nz/business/opinion-analysis/128751989/nz-king-salmon-shares-have-lost-71-of-their-value-this-year--5-things-you-should-know#comments

Of course it will. Blue Endeavour (if approved) will cost lots of money (the company does not have) and is high risk. As far as I know the first open water salmon farming operation in the world ... but hey, what possibly can go wrong - even if we don't consider climate change?

Just wondering whether a handful of one in a century storms per decade and ways increased wave energy might be an issue for an open sea farming operation?

[BlackPeter]

19.5 cents per share ... so, it is official now: NZK turned into one of these penny dreadful stocks with high risks and limited rewards.

Who would have thought that a conservative agricultural stock chaired by the well regarded John Ryder will drop from more than $2 (actually $2.70 in Nov 2018) to below 20 cents today?

Some of the gurus here say the market is always right - but was it really right in November 2018 and is it as well right today?

Just amazing.

[bull....]

Another capital raise will be needed if Blue Endeavour is approved.

https://www.stuff.co.nz/business/opinion-analysis/128751989/nz-king-salmon-shares-have-lost-71-of-their-value-this-year--5-things-you-should-know#comments

chairman confirmed at annual general meeting that will be the case

https://www.nzherald.co.nz/business/nz-king-salmons-blue-endeavour-may-require-a-capital-raise/AM3XRG2Q4J6FGLG653A5CQLV2I/

[GTM 3442]

19.5 cents per share ... so, it is official now: NZK turned into one of these penny dreadful stocks with high risks and limited rewards.

<snip>

Some of the gurus here say the market is always right - but was it really right in November 2018 and is it as well right today?

Just amazing.

If you want penny dreadfuls, might I suggest PHL, ACE, or ACF, to name but a few.

As for NZK:

Based on what the market knew in 2018, the market was right in 2018.

Based on what the market knows in 2022, the market is right in 2022.

Based on what the market knows in 2022, the market was wrong in 2018.

In spite of what they say, timing is important!

[Balance]

If you want penny dreadfuls, might I suggest PHL, ACE, or ACF, to name but a few.

As for NZK:

Based on what the market knew in 2018, the market was right in 2018.

Based on what the market knows in 2022, the market is right in 2022.

Based on what the market knows in 2022, the market was wrong in 2018.

In spite of what they say, timing is important!

Bravo!

Excellent answer!

Market and businesses are dynamic and conditions change.

[BlackPeter]

Bravo!

Excellent answer!

Market and businesses are dynamic and conditions change.

Excellent? Not really but confirming my point.

Market is as clueless as anybody else in predicting the future in any consistent manner.

If you call this as "market always being right" than I don't know how in your view a wrong decision would look like. Most people are at most times doing their best according to their present knowledge ... and just look at the mess this creates.

Does not mean they are always right.

[Balance]

Excellent? Not really but confirming my point.

Market is as clueless as anybody else in predicting the future in any consistent manner.

If you call this as "market always being right" than I don't know how in your view a wrong decision would look like. Most people are at most times doing their best according to their present knowledge ... and just look at the mess this creates.

Does not mean they are always right.

The world would be a perfect place if it is possible to predict the future perfectly.

[BlackPeter]

The world would be a perfect place if it is possible to predict the future perfectly.

I would disagree with this statement ... and this is easy to test.

As we all know - God (if she exists) is able to predict the future perfectly ... given he made it. Do you really think the world looks like a perfect place for him/her?

[whatsup]

Todays newspaper yesterday !!

[Balance]

Another day, another takeover speculation squashed.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZK/394541/373738.pdf

New Zealand King Salmon Investments Limited (NZX and ASX: NZK) is aware of speculation published recently in the media.

NZKS confirms that it has not been approached, and is not in discussions with any parties, regarding a potential takeover transaction.

New Zealand King Salmon remains in compliance with its NZX continuous disclosure obligations and will continue to inform the market in accordance with them.

[winner69]

Speculation about a takeover denied by NZK

Maybe speculation fueled by Cooke making an offer for Tassel

Who knows ,,,, but jeez acquiring NZK really on anybody's radar when they could be broke in years time

[Entrep]

No price action based on the so-called rumours.

[CD_CHCH]

Speculation about a takeover denied by NZK

Maybe speculation fueled by Cooke making an offer for Tassel

Who knows ,,,, but jeez acquiring NZK really on anybody's radar when they could be broke in years time

Shhhh Don't speak too loudly - the board of Sky TV might hear you and decide to bid for NZK next

[bull....]

more koha needed

musta paid the koha by the way the shares are going

[silverblizzard888]

Looks like the share price is getting a boost from this:

"Tasmania-Nelson direct shipping route boost for aquaculture"
https://www.stuff.co.nz/business/farming/aquaculture/129464129/tasmanianelson-direct-shipping-route-boost-for-aquaculture

[Entrep]

Blue Endeavour result leaking out?

[silverblizzard888]

Blue Endeavour result leaking out?

CEO in the above mentioned article does say “Offshore farming offers a route to increase production with two applications currently being assessed,” Rosewarne said. “Our Blue Endeavour plan, when approved, will deliver an additional 10,000 tonnes a year of King salmon. "

Given how careful CEOs are with wording, that when approved, rather than if is a big give away!

[BlackPeter]

Blue Endeavour result leaking out?

Not quite sure whether approval of Blue Endeavor would be good or bad for them. Only would mean that they need to raise more money to build an untested open sea farm ... which - after a long time - may or may not return the capital invested.

Current market cap is $135m. Any idea what it would cost to get Blue Endeavour up and running, allowing for a number of learning cycles? I suppose the dilution at current SP would be substantial.

[silverblizzard888]

Not quite sure whether approval of Blue Endeavor would be good or bad for them. Only would mean that they need to raise more money to build an untested open sea farm ... which - after a long time - may or may not return the capital invested.

Current market cap is $135m. Any idea what it would cost to get Blue Endeavour up and running, allowing for a number of learning cycles? I suppose the dilution at current SP would be substantial.

No idea on cost and if it will work well, but CEO in June said this:

Chief executive Grant Rosewarne said the first possible harvest for Blue Endeavour would be in 2027 but "NZ King Salmon acknowledges that we first need to prove the positive outcomes of our new agriculture model".


"Assuming approval to proceed, before expanding into Blue Endeavour, all options for funding remain on the table," he said.

https://www.newstalkzb.co.nz/news/business/nz-king-salmon-pours-cold-water-on-takeover-talk/

[Entrep]

BE decision should come this month. Let's gooooo!

https://media.giphy.com/media/dmcQ75lZdh4Hu/giphy.gif

[BlackPeter]

BE decision should come this month. Let's gooooo!

https://media.giphy.com/media/dmcQ75lZdh4Hu/giphy.gif

You need to find a better animation, if you really can't stop yourself.

A sinking ship would be much more appropriate.

[TheHunter]

Surprised this hasn't been mentioned already:

https://www.rnz.co.nz/news/country/473372/marlborough-salmon-farm-unable-to-harvest-due-to-road-closure

Noting Whangamoa road re-opened six days ago now.

[Balance]

Could be another bad year ahead for salmon & mussel farming in NZ :

https://www.nzherald.co.nz/nz/explained-coming-marine-heatwave-may-be-one-of-nzs-worst/EYMYOQR2X2U3HPA3WXFHFC3GDY/"This is something that's been ongoing for more than six months now in Auckland, Coromandel, Bay of Plenty, Waikato, Taranaki, Tasman and off the West Coast of the South Island, as well as in parts of the eastern Tasman Sea."

As of September 13, SSTs in New Zealand's six "climate regions" ranged from 0.6C to 1C above average, relative to the 1991-2020 long-term average.

"If we were to compare that with the same day last year, around the North Island, SSTs are two-tenths to six-tenths of a degree warmer – so it's a pretty concerning picture."

What happens next?

According to the latest guidance, the signal for marine heatwave conditions for the months ahead was even stronger than the state of play last September.

* SST - Soaring Sea Temperatures

[ronaldson]

This was not good news for both NZK and SAN. Pelorus Sound is looking stuffed in the longer term as there seems no prospect of a reversal to the warming trend. Fishing/Fish Farming is an industry which will bear the brunt of climate change and adaptions will surely be needed. Can NZK move fast enough to survive?

[Sideshow Bob]

https://www.nzx.com/announcements/399509

New Zealand King Salmon Investments Ltd (NZX & ASX: NZK) reports its financial performance for the six months period ended 31 July 2022 (1HY23). Key points include:

• We reaffirm full year earnings guidance given in April 2022 of an $8m - $12m pro forma EBITDA loss.
• Net loss after tax of $24.5m, following a challenging start to the year with sea farm mortalities, lower harvest and a decline in biomass at sea.
• Revenues are consistent with the prior comparable period (PCP) at ~$80m as a combination of price increases and customer mix have offset reduced sales volumes through 1HY23.
• Sales volumes decreased from 3,669mt in 1HY22 to 2,886mt 1HY23 (a decrease of 21%) consistent with the consequences of a reduced harvest.
• The mortality event in January 2022 continued into 1HY23 and increased mortality cost by $11.9m from $10.4m in 1HY22 to $22.3m.
• Pro-forma EBITDA for 1HY23 was a loss of $13.7m compared to profit of $3.3m for the 1HY22. This is predominately due to the mortality event affecting the first half of FY23, while 1HY22 included $13.5m of early forex close-outs included in other income.
• Finished goods inventories continue to be managed down sensibly following the build-up which occurred through COVID disruptions.
• Post the equity raise in May 2022 net bank (debt)/cash position has improved from a debt position of $44.1m on 31 January 2022 to a net cash position of $15.6m on 31 July 2022. In addition to cash on hand, NZ King Salmon has access to a $6.5m revolving debt facility which remains undrawn.

New Zealand King Salmon Chairman John Ryder said: “As previously indicated we had a disappointing start to the year because of high mortality and the cost of this was $22m for 1HY23. We then had to begin rebuilding our biomass and accordingly we restricted our harvest and sales. We introduced a number of cost-saving initiatives, and our financial performance has improved although there is more work to do. Our recovery progress is in line with previously communicated guidance.”
CEO Grant Rosewarne acknowledged it had been a tough start to the financial year, but the outlook was improving with price increases implemented across all markets. “We introduced our new aquaculture strategy as outlined at full year with three farms in the Pelorus already fallowed. We also made the decision to mothball our Waiau freshwater facility which is surplus to current requirements.”

“We successfully completed a $60.1 million pro rata rights offer and proceeds were used to repay debt which has left us with net cash of $15.6 million. We now have to rebuild biomass from 3,700MT back up to around 5,000MT.

“As outlined previously, we downsized the company, which was necessary to align with the reduced harvest, which was not an easy decision to make. We have been fortunate that there are a number of staff shortages in other businesses, so only 23 positions were made redundant as our business reduced from 580 team members to 452, largely through attrition,” Mr Rosewarne said.

“We sensibly reduced capex and we are forecasting capex spend of $6.5m to $7.5m, compared to $13m last year. Much of the capex relates to pre committed projects, such as a new barge and net cleaner and work on our Blue Endeavour application.”

“Along with introducing price increases across all markets, we have made improvements to our customer and product mix, and we have reduced our promotional budget. There has been a large focus on supply and demand this year following a reduced harvest. Our strong markets remain North America for Ōra King and domestically our Regal brand remains New Zealand’s most preferred smoked salmon,” Mr Rosewarne added.

Recent media articles have indicated the potential for another marine heatwave this summer. The change in our aquaculture model is designed to provide strong mitigation against the effects of warmer temperatures.

“The hearing for our open ocean Blue Endeavour application, 7kms north of Cape Lambert in the Cook Strait, was formally closed at the beginning of September and a decision is now expected by the end of the year. This project is expected to have multiple benefits including increase in scale of operations, reduction in operating costs and improvements in fish health.”

Blue Endeavour would provide an opportunity to recommence farming at three of the fallowed farms in the Pelorus Sound, which will be used as nursery sites for 9 months of the year, avoiding the summer months with fish being transferred to Blue Endeavour at ~1.5kgs for full grow out to ~4.2kgs average weight. This represents an efficient use of assets, capital, and resources.

The application is aligned with the Government’s Aquaculture Strategy which was launched in late 2019 and now has an accelerated objective of the industry achieving $3 billion revenue by 2030. Ends

[Recaster]

Had a brief look at and update of this business:

https://recastinvestor.substack.com/p/update-new-zealand-king-salmon-nzknzx-a93

[winner69]

Did it all become a bit too hard for Grant or did Grant become a bit of a problem for the Board

CEO leaves today

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZK/401476/382295.pdf

[Sideshow Bob]

Did it all become a bit too hard for Grant or did Grant become a bit of a problem for the Board

CEO leaves today

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZK/401476/382295.pdf

Leaving the day it is announced...........hmmmmmmmmm

[Balance]

Did it all become a bit too hard for Grant or did Grant become a bit of a problem for the Board

CEO leaves today

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZK/401476/382295.pdf

Ominous for Blue Endeavor?

[Entrep]

Damn, this isn't good. If they cock up Blue Endeavor it's game over.

[BlackPeter]

Did it all become a bit too hard for Grant or did Grant become a bit of a problem for the Board

CEO leaves today

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZK/401476/382295.pdf

I guess he is not best known for his diplomatic communication style with politics, councils and other regional authorities. While I don't know at what stage the recent environmental hearing process is ... I could well imagine that his communication style was not always seen as helpful.

[Entrep]

I guess he is not best known for his diplomatic communication style with politics, councils and other regional authorities. While I don't know at what stage the recent environmental hearing process is ... I could well imagine that his communication style was not always seen as helpful.

There is meant to be a decision this month I believe

[Rossimarnz]

Would NZ King Salmon see a draft decision for their Blue Endeavour application?

[winner69]

Would NZ King Salmon see a draft decision for their Blue Endeavour application?

Maybe not a draft but if they were on the ball they'd have a pretty good 'feel' how its working out

[Rossimarnz]

Maybe not a draft but if they were on the ball they'd have a pretty good 'feel' how its working out

Is this a case of 2+2=5 ie does this resignation signal the likely outcome for their Blue Endeavour application?

[winner69]

Is this a case of 2+2=5 ie does this resignation signal the likely outcome for their Blue Endeavour application?

could be 2+2 =3

[Entrep]

could be 2+2 =3could be 2+2=window

[BlackPeter]

could be 2+2=window

You mean defenestration?

[winner69]

Trading halt

Must have finally got that consent

[Entrep]

NZK has requested the trading halt pending a material announcement regarding Marlborough District Council’s decision in respect of NZK’s application for resource consent for the Blue Endeavour open ocean salmon farm.

The trading halt will remain in place until release of the material announcement by NZK, or market open on Monday, 14 November 2022.

Let's goooo

[iceman]

NZK
11/11/2022 15:24
GENERAL
PRICE SENSITIVE
REL: 1524 HRS New Zealand King Salmon Investments Limited

GENERAL: NZK: NZKS granted consent to farm in the Open Ocean

NZKS granted consent to farm in the Open Ocean

New Zealand King Salmon has been given the green light to begin farming the
first open ocean finfish site in New Zealand.

Following a hearing in Blenheim last year, commissioners have just announced
their decision to approve the Blue Endeavour application.

"We're pleased our plans to farm in the open ocean have been given the go
ahead. This is a first for New Zealand and is a significant decision for the
aquaculture industry," says Acting Chief Executive Graeme Tregidga.

"I want to thank all who have been part of this extensive process which has
taken six years to get to this point."

Mr Tregidga says open ocean is part of the company's long-term strategy, but
the current focus remains on the company's inshore farming production.

NZKS General Manager of Aquaculture, Grant Lovell, says open ocean farming
makes logical sense for both the environment and for the species in the long
term.

Mr Tregidga says the next step is to study the decision and associated
conditions before coming up with an implementation plan and investment
options.

[winner69]

Granted
https://eservices.marlborough.govt.nz/programmes/ListProgrammeEvents?id=3516198

[aquaman]

Good news but i fear a long expensive road yet with a request for significant shareholder contribution
"Mr Tregidga says the next step is to study the decision and associated
conditions before coming up with an implementation plan and investment
options."
I do hope that it does work out in the long run
Immediate concerns are impact on financials due to the warm seas fish stock condition and attrition this summer

[Entrep]

Strongish start to the day, sold back down now. Big block for sale at 30c though.

[Entrep]

REL: 1703 HRS New Zealand King Salmon Investments Limited

GENERAL: NZK: Blue Endeavor decision appealed

1 December 2022

Blue Endeavour decision appealed seeking changes to conditions

The Department of Conservation (DoC) has lodged an appeal seeking changes to
the conditions imposed on the Blue Endeavour consent. Should those changes
be made, DoC has signalled that it does not oppose the granting of the
consent of the Blue Endeavour application.

Following a hearing in Blenheim which started last year, Marlborough District
Council announced on November 11 the decision by three commissioners to
approve New Zealand King Salmon's application to farm in the open ocean.

NZKS will be heading into mediation with DoC and any other interested parties
in the New Year.

The company is unaware of any other appeals, or parties intending to appeal.

[BlackPeter]

REL: 1703 HRS New Zealand King Salmon Investments Limited

GENERAL: NZK: Blue Endeavor decision appealed

1 December 2022

Blue Endeavour decision appealed seeking changes to conditions

The Department of Conservation (DoC) has lodged an appeal seeking changes to
the conditions imposed on the Blue Endeavour consent. Should those changes
be made, DoC has signalled that it does not oppose the granting of the
consent of the Blue Endeavour application.

Following a hearing in Blenheim which started last year, Marlborough District
Council announced on November 11 the decision by three commissioners to
approve New Zealand King Salmon's application to farm in the open ocean.

NZKS will be heading into mediation with DoC and any other interested parties
in the New Year.

The company is unaware of any other appeals, or parties intending to appeal.

Interesting to watch ... but not really to invest in. Huge uncertainty, significant risks and limited opportunities.

[ronaldson]

Takeover target for SAN?

[TFA]

Interesting to watch ... but not really to invest in. Huge uncertainty, significant risks and limited opportunities.
Agree, there is risk & uncertainty but disagree that there is limited opportunity.
1000 hectare to supply premium product in growing market.
Government wants aquaculture sector to grow from $600 to $3b by 2032 and believe salmon will be key driver

I seem to recall revenue potential was many hundreds of million.
Watched one video that mentioned $14m/hectare , that works out at $1.4b...???

Would love to see any model that shows what the potential of this is

[BlackPeter]

Agree, there is risk & uncertainty but disagree that there is limited opportunity.
1000 hectare to supply premium product in growing market.
Government wants aquaculture sector to grow from $600 to $3b by 2032 and believe salmon will be key driver

I seem to recall revenue potential was many hundreds of million.
Watched one video that mentioned $14m/hectare , that works out at $1.4b...???

Would love to see any model that shows what the potential of this is

I see two possible outcomes of the open water farming:

1) They invest a lot of money (into permits, equipment and learning how to overcome teething problems) and at the end it works. NZK manages to act as trail blazer to open a new industry of open sea salmon farming. Competitors can follow (given that there is not really a moat) and achieve the same results cheaper and limiting NZK's margins. High investment, limited payback.

2) It doesn't work, the problems are not surmountable and NZK needs to write off its significant investment.

That's what I mean with significant risks and limited opportunities. If it works, sure there might be a huge opportunity for the salmon industry as a whole, but it was only NZK paying for the learning and blazing the trail. If it doesn't work, than its just NZK who paid for everybody.

Sure - nice somebody is doing this for the industry, but is this somebody a good company to invest in?

[bull....]

DOC seeks conditions on proposed NZ King Salmon operation in Cook Strait
The Department of Conservation (DOC) has lodged an appeal against the consent granted to the project, called Blue Endeavour, by the Marlborough District Council last month

https://www.rnz.co.nz/news/business/479917/doc-seeks-conditions-on-proposed-nz-king-salmon-operation-in-cook-strait

this could be bad news

[TFA]

I see two possible outcomes of the open water farming:

1) They invest a lot of money (into permits, equipment and learning how to overcome teething problems) and at the end it works. NZK manages to act as trail blazer to open a new industry of open sea salmon farming. Competitors can follow (given that there is not really a moat) and achieve the same results cheaper and limiting NZK's margins. High investment, limited payback.

2) It doesn't work, the problems are not surmountable and NZK needs to write off its significant investment.

That's what I mean with significant risks and limited opportunities. If it works, sure there might be a huge opportunity for the salmon industry as a whole, but it was only NZK paying for the learning and blazing the trail. If it doesn't work, than its just NZK who paid for everybody.

Sure - nice somebody is doing this for the industry, but is this somebody a good company to invest in?

I see this very differently. I agree there are execution risks but this won't be a trailblaze for others to follow as the barriers to entry are enormous. Anyone else (and lets face it there's only Sanford) have to go through the same costly and lengthy process to apply a consent which is generally have only a chance of being approved. Sanford are doing their own thing down South.

[Dassets]

Agree. The DOC appeal is to be expected and is likely to be around some specific operational concerns but not an appeal against the consent.

[Entrep]

There was another article in the papers about 2 months ago saying waters were getting even hotter still. So the current business is effectively stuffed. BE won’t come online until 2028 I think it is? And will also require a cap raise. So exactly what state will the company be in the next 4-6 years?

[Entrep]

Another one


McGuinness Institute Ltd files appeal against Blue Endeavour consent

New Zealand King Salmon Investments Limited (NZKS) has been informed that the
McGuinness Institute Ltd has filed an appeal against the granting of the
consent for NZKS's open ocean farming project, Blue Endeavour. This follows
the appeal by the Department of Conservation (DoC) seeking changes to certain
conditions imposed on the consent.

Following a hearing in Blenheim which started last year, the Marlborough
District Council announced on November 11 the decision by three commissioners
to approve NZKS's application to farm in the open ocean.

NZKS will enter mediation with DoC, the McGuinness Institute Ltd and any
other interested parties in the New Year. The final date for lodging appeals
against the Blue Endeavour consent was Friday, December 2, 2022.

https://www.mcguinnessinstitute.org/

[Sideshow Bob]

https://www.nzx.com/announcements/406481

New Zealand King Salmon Investments Limited (NZK) – Trading Update

New Zealand King Salmon is reporting a strong end to trading and production in FY23.

As previously communicated, the company’s revised farming model includes a seasonal harvest component (growing salmon for a shorter production cycle to avoid the warmer waters in the Pelorus and Queen Charlotte sounds over summer). In FY23, the seasonal harvest at our Ruakaka farm (Queen Charlotte) was expected to be ~500 MT, however these salmon outperformed expectations and the harvest completed in late January came in at ~750 MT. This has resulted in an increase in our planned FY23 harvest from ~ 5,750 to ~6,000 MT.

In addition to the increase in harvest, both the strong sales performance experienced in 1HFY23 and a focus on cost control has continued into 2HFY23, noting feed and freight costs still sit well above pre Covid levels. Although the company is still finalising FY23 results which are subject to audit, we are revising our earnings guidance on a proforma EBITDA basis for FY23 to a loss of $3m – $5m (previously stated as a loss of $8m – 12m).

Despite the current summer continuing the recent trend of marine heatwaves around New Zealand, our production plan is currently performing well. This involves having the majority of stocks held in the cooler waters of the Tory Channel over the critical summer months. New Zealand King Salmon will provide a further business update, including FY24 Guidance as part of our year end results announcement expected at the end of March.

[iceman]

https://www.nzx.com/announcements/406481

New Zealand King Salmon Investments Limited (NZK) – Trading Update

New Zealand King Salmon is reporting a strong end to trading and production in FY23.

As previously communicated, the company’s revised farming model includes a seasonal harvest component (growing salmon for a shorter production cycle to avoid the warmer waters in the Pelorus and Queen Charlotte sounds over summer). In FY23, the seasonal harvest at our Ruakaka farm (Queen Charlotte) was expected to be ~500 MT, however these salmon outperformed expectations and the harvest completed in late January came in at ~750 MT. This has resulted in an increase in our planned FY23 harvest from ~ 5,750 to ~6,000 MT.

In addition to the increase in harvest, both the strong sales performance experienced in 1HFY23 and a focus on cost control has continued into 2HFY23, noting feed and freight costs still sit well above pre Covid levels. Although the company is still finalising FY23 results which are subject to audit, we are revising our earnings guidance on a proforma EBITDA basis for FY23 to a loss of $3m – $5m (previously stated as a loss of $8m – 12m).

Despite the current summer continuing the recent trend of marine heatwaves around New Zealand, our production plan is currently performing well. This involves having the majority of stocks held in the cooler waters of the Tory Channel over the critical summer months. New Zealand King Salmon will provide a further business update, including FY24 Guidance as part of our year end results announcement expected at the end of March.

I hope I'm not the only one to question the quality of their 500t forecast if they achieved 750t, or 50% more than forecast. What does that say about all their other forecasts !

[Rawz]

We had salmon for dinner last night. The ocean blue brand, not sure that is one of NZKs? Anyways i wish NZK all the best and hope they learn how to make money one day. They play an important role in the economy. Good on them.

Not one i would invest in thou.

[mshierlaw]

We had salmon for dinner last night. The ocean blue brand, not sure that is one of NZKs? Anyways i wish NZK all the best and hope they learn how to make money one day. They play an important role in the economy. Good on them.

Not one i would invest in thou.

Ocean blue is based in Denmark! I Made the same mistake too. You can tell its atlantic salmon as soon as you bite into it.

[Sideshow Bob]

Back in black.....

https://www.nzx.com/announcements/409109

New Zealand King Salmon Investments Ltd (NZX & ASX: NZK) reports its financial performance for the 12 months period ended 31 January 2023 (FY23). Key points include:
 
• FY23 net profit for the year of $1.9 million, compared to a net loss of $73.2 million
in FY22.
• FY23 pro-forma EBITDA was a loss of $4.4 million, compared to an EBITDA profit of $6.7 million in FY22 (FY22 included $13.5 million of gains from the early close of FX contracts).
• Sales volumes decreased from 7,672MT in FY22 to 5,837MT in FY23 (a decrease of 24%).
• Revenues decreased from $174.5 million in FY22 to $167.1 million in FY23 (a decrease of 4%).
• The mortality cost increased from $20.8 million in FY22 to $25.9m in FY23. 

[BlackPeter]

Back in black.....

https://www.nzx.com/announcements/409109

New Zealand King Salmon Investments Ltd (NZX & ASX: NZK) reports its financial performance for the 12 months period ended 31 January 2023 (FY23). Key points include:
 
• FY23 net profit for the year of $1.9 million, compared to a net loss of $73.2 million
in FY22.
• FY23 pro-forma EBITDA was a loss of $4.4 million, compared to an EBITDA profit of $6.7 million in FY22 (FY22 included $13.5 million of gains from the early close of FX contracts).
• Sales volumes decreased from 7,672MT in FY22 to 5,837MT in FY23 (a decrease of 24%).
• Revenues decreased from $174.5 million in FY22 to $167.1 million in FY23 (a decrease of 4%).
• The mortality cost increased from $20.8 million in FY22 to $25.9m in FY23. 

Good stuff. So they will need only 36 more ok-ish years like FY2023 to recover their FY2022 loss.

Generating money from 2060! I likely will be dead by then, but I admire this investment horizon ...

[Entrep]

Completely uninvestable

[whatsup]

Back in black.....

https://www.nzx.com/announcements/409109

New Zealand King Salmon Investments Ltd (NZX & ASX: NZK) reports its financial performance for the 12 months period ended 31 January 2023 (FY23). Key points include:
 
• FY23 net profit for the year of $1.9 million, compared to a net loss of $73.2 million
in FY22.
• FY23 pro-forma EBITDA was a loss of $4.4 million, compared to an EBITDA profit of $6.7 million in FY22 (FY22 included $13.5 million of gains from the early close of FX contracts).
• Sales volumes decreased from 7,672MT in FY22 to 5,837MT in FY23 (a decrease of 24%).
• Revenues decreased from $174.5 million in FY22 to $167.1 million in FY23 (a decrease of 4%).
• The mortality cost increased from $20.8 million in FY22 to $25.9m in FY23. 

Has the worm turned ?

[Sideshow Bob]

Has the worm turned ?

Maybe it should be "has the smolt turned"?? ;)

At least they have shored up their balance sheet after the cap raise last year, and little debt.

Disc: Not a holder and not on the radar (or fish finder).

[Recaster]

Easily one of the worst companies on the New Zealand exchange.

The announcement of the result doesn't surprise.

Firstly the use of the largely useless metric EBITDA as a headline because it looks better than the profit to those who don't know.

Secondly, the $49.6m of unrealised fair value gains on fish stocks which only an accountant could call biological assets. Close to the top of the income statement. Poof, there goes your result.

Amazed that Jardens got the capital raise away last year. Misallocation of capital an investment banking specialty.

[TheHunter]

Secondly, the $49.6m of unrealised fair value gains on fish stocks which only an accountant could call biological assets. Close to the top of the income statement. Poof, there goes your result.


I don't think anyone in the industry is particularly fond of the application of biological assets (IAS 41) either. To NZK's credit, they make a good effort of disclosing pro-forma NPAT etc. in their investor presentation, excluding all that rubbish.

The only good thing about fair value gains on biological assets is it offers some insight into expected performance for the coming years.

[TheHunter]

NZK's story is such a shame. Great product with high international demand but has always been supply constrained (excl. covid).

Lack of govt support for farm relocations has really taken it's toll via mortality / volumes, and consequently company performance (+ local employment etc.).

Be interesting to see how the five licenses due for renewal in 24 play out. Small farms, albeit still reflect approx. one fifth of total vol....

[Recaster]

The analysis of this company unfortunately requires looking at the largely incomprehensible (for anyone but experienced accountants and sometimes even for them too) IFRS 9 Financial Instruments.

Nearly $8m has been taken from hedge reserves for release from forward exchange contract obligations and an identical amount has popped up, hidden unless one examines the notes to the accounts, in other income which appears high up the income statement.

Moving the amount lower to extraordinary items in the recast format gives a much different view of the revenue statement and a much clearer picture of the state of this company's affairs in terms of sustainable earnings.

There's an argument for it to be higher up the statement as hedging is part of normal operations and they normally work inversely to the hedged item(s) i.e. they trade off.

It's useful to see it separated out though.

[TheHunter]

Nearly $8m has been taken from hedge reserves for release from forward exchange contract obligations and an identical amount has popped up, hidden unless one examines the notes to the accounts, in other income which appears high up the income statement.

As per the fair value gains on biological assets mentioned above, the FX contract close outs are also excluded from the pro-forma financials in the investor presentation (and highlighted in supporting reconciliation back to GAAP).

I don't think this is largely incomprehensible, rather clearly highlighted. Pro-Forma NPAT posts a good picture of the underlying result (and it's not pretty).

[Sideshow Bob]

https://www.nzx.com/announcements/409965

John Ryder steps down as Chair of NZK

New Zealand King Salmon Investments Limited (NZX & ASX: NZK) announced that John Ryder has informed the Company of his intention to resign from his role as Chair. Mr Ryder’s resignation will take effect at the AGM on the 14th of June 2023.

Mr Ryder became a Director of New Zealand King Salmon in 2009. Reflecting on his time serving on the Board of New Zealand King Salmon, he said:

“It is the right time to leave NZKS, knowing the company is well-positioned for the future following the recovery from disruptions caused by the Covid-19 pandemic and mortality event at the back end of FY22 and start of FY23. The business has come a long way over the years, has an excellent team, a wonderful brand, and has created a sound platform for the continual expansion of earnings. The board is due for a refresh, and I wish to spend more time expanding my business activities with Qestral Corporation”.

Acting Chief Executive Graeme Tregidga said: “On behalf of New Zealand King Salmon I want to thank John for his many contributions to the company during his 14-year tenure.”

Mr Ryder was the joint founder and joint CEO of Ryman Healthcare Limited and is currently Executive Chair of Qestral Corporation and Independent Chair of Direct Capital VI Management Limited. Mr Ryder is a fellow of the New Zealand Institute of Accountants and was inducted into the New Zealand Business Hall of Fame in 2021.

The Board will commence a search for a new Chair.

[TheHunter]

CEO, CFO and Chairman all jumped ship now, not good.

[BlackPeter]

CEO, CFO and Chairman all jumped ship now, not good.

How do they say - success has many fathers, failure is an orphan.

[Sideshow Bob]

CEO, CFO and Chairman all jumped ship now, not good.

Might be a good thing. Not exactly if they were going great guns beforehand.

[BlackPeter]

Might be a good thing. Not exactly if they were going great guns beforehand.

Can't comment on the CFO, but the CEO clearly didn't had enough social intelligence, if you remember some of his fall outs with politicians whose support his company dearly needed. In jobs like these your soft skills are always more important than your technical competence.

The chair - actually I do respect John Ryder as investor as well as his work for Ryman. Clear issue was that nobody saw for NZK the impact of climate change (and it would have been the job of the board to look) - and if you look at my comment about the CEO, they clearly didn't had a very lucky hand in recruiting the right people. Another big minus for the board and the chair.

Big gun? Maybe, but not that accurate in hitting the desired target.

[iceman]

A hearing in Blenheim on Thursday into the numerous objections to their offshore farming application. I hear NZK was surprised as they were not expecting this before the election.
Hopefully this goes well and the panel will find that there is no need to go to the Environment Court. The Government's $ 1 Billion strategy by 2030 needs projects like this if that is going to be achieved. Time to let the industry get on with it.

[BlackPeter]

A hearing in Blenheim on Thursday into the numerous objections to their offshore farming application. I hear NZK was surprised as they were not expecting this before the election.
Hopefully this goes well and the panel will find that there is no need to go to the Environment Court. The Government's $ 1 Billion strategy by 2030 needs projects like this if that is going to be achieved. Time to let the industry get on with it.

Haven't seen the submissions, so couldn't possibly comment on them.

However - no matter which position the panel takes on the submissions, it is not up to the panel to decide whether the submitters go to the environment court or not. If the issue is big enough (and I am sure, it is) there always is somebody unhappy, and this is the party taking the case to the Environment court.

Again - whether NZK has a case, I wouldn't know. However - so far the company clearly didn't stand out in terms of environmental awareness, or maybe they did: highly incompetent bunch ignoring global warming with a business case requiring cold fresh water.

If we want to do something for the economy ... here is a really easy and cheap idea: Allow trout farming in NZ!

Very easy, environmentally friendly, any idiot can do it and it produces a good harvest and good money: even NZK would be able to farm trout's without any problems and make money. Only problem is: It is illegal in NZ in order to protect the perceived interests of a very small minority of recreational and often stink rich anglers.

[ralph]

I have to say trout do not taste the same as salmon & are a very poor freshwater cuisine cousin compared to salmon, without the omega fatty acids etc .
Certainly not as profitable & with no overseas market to speak of b p, its not happening stink rich wanglers need not worry keep calm .

[iceman]

I have to say trout do not taste the same as salmon & are a very poor freshwater cuisine cousin compared to salmon, without the omega fatty acids etc .
Certainly not as profitable & with no overseas market to speak of b p, its not happening stink rich wanglers need not worry keep calm .

Agree. NZ will never grow the aquaculture business on a decent scale without salmon farming. Trout can never replace salmon if we want to be serious about exporting large volumes.

[BlackPeter]

I have to say trout do not taste the same as salmon & are a very poor freshwater cuisine cousin compared to salmon, without the omega fatty acids etc .
Certainly not as profitable & with no overseas market to speak of b p, its not happening stink rich wanglers need not worry keep calm .


Agree. NZ will never grow the aquaculture business on a decent scale without salmon farming. Trout can never replace salmon if we want to be serious about exporting large volumes.

Quite beside the point. Of course have trout and salmon different tastes ... they are different fish with different lifecycles - and while salmon spends a good part of its life in the sea, the trout lives only in rivers and lakes.

Comparing the respective tastes is like comparing the taste of Taiwanese green tea and Columbian coffee. Both can be great, but what you like depends on your taste buds and what you are used to drink.

Long live diversity ... and both have a deserved place in a great cuisine.

I didn't propose to replace salmon farming with trout farming, but to do both ... and obviously - salmon farming is harder, i.e. I wonder whether the NZK board is ever able to turn that into hard coin (other for themselves, obviously), but maybe they just need to replace the board and start again with fresh money and fresh minds :).

Looking into the returns .. iceman, if you look that your previous neighbour (Norway) is the largest exporter of frozen trout and the total value of the market is annually something like US$700m, I am wondering why you think NZ would be unable to turn this into a business as well. Norway is able to make money with exporting trout and Salmon, so why would we not be able to do that as well?

https://www.tridge.com/intelligences/trout/export

But back to NZK: Wondering whether share holders put already enough money beside for the next big capital raise to fund a high risk low return (if everything goes right) adventure on high sea. I am sure the cost will be real, but worry about the returns. Obviously - only if the environment court is going to allow it, otherwise they better wind down the company now.

[Southern Lad]

See ASX announcement this morning on mediated settlement to agree conditions for issue of Blue Endeavour consent:

https://announcements.asx.com.au/asxpdf/20230605/pdf/05qbng8j6cw241.pdf

[herbert240]

One step to go....wonder how long that will take?

[BlackPeter]

One step to go....wonder how long that will take?

Only one more step? Which one are you talking about?

1) Plan plant and operation
2) Fund it (capital raise)
3) set it up
4) operate it and monitor the results
5) based on the results in (4) - modify / optimise operation
and go back to (4) or go to (6)
6) if shareholder good will left, go back to (1) otherwise go to (7)
7) Exit

[herbert240]

No I was referring to link in Southern Lad's post which said the final regulatory step is an acquaculture decision to be made by the Ministry for Primary Industries (MP!)

[Sideshow Bob]

https://www.nzx.com/announcements/412533

Mediated Settlement to NZKS Blue Endeavour Consent

[silverblizzard888]

Snippet from Sanford's recent update, sounds pretty upbeat about Salmon pricing and demand.

Bodes well with their $21-25m Ebitda forecast.

24/8/23 "Pricing remains strong for the Salmon division, up 20.3% on pcp. Sales volumes remain consistent with the same quarter in FY22 and with pre-covid sales levels" CEO Craig Ellison says: “Pricing remains encouraging for all divisions, and it is pleasing that demand, particularly in export markets, is strong.”

“Salmon continues to be the standout for the group with strong demand for King Salmon and the Big Glory Bay brand. Risk mitigation initiatives introduced earlier in the year have also helped keep the salmon healthy and reduce the impact of mortalities.”

[ralph]

Snippet from Sanford's recent update, sounds pretty upbeat about Salmon pricing and demand.

Bodes well with their $21-25m Ebitda forecast.

24/8/23 "Pricing remains strong for the Salmon division, up 20.3% on pcp. Sales volumes remain consistent with the same quarter in FY22 and with pre-covid sales levels" CEO Craig Ellison says: “Pricing remains encouraging for all divisions, and it is pleasing that demand, particularly in export markets, is strong.”

“Salmon continues to be the standout for the group with strong demand for King Salmon and the Big Glory Bay brand. Risk mitigation initiatives introduced earlier in the year have also helped keep the salmon healthy and reduce the impact of mortalities.”

If NZK do go-ahead there is a big future for them in this market ,and as someone already said salmon from the ocean/sea is far superior to the mount Cook variety .
And all the healthy eaters Diet conscious amongst us cannot get enough of it .
share price someday should bounce back !!!

[BlackPeter]

If NZK do go-ahead there is a big future for them in this market ,and as someone already said salmon from the ocean/sea is far superior to the mount Cook variety .
And all the healthy eaters Diet conscious amongst us cannot get enough of it .
share price someday should bounce back !!!

That's the thing with companies in distress - they either bounce back or they go broke.

The odds are on the second option, but hey - there is always hope.

[ralph]

Totally but what are the odds !!

[BlackPeter]

Totally but what are the odds !!

That's the 64 million Dollar question ...

[Sideshow Bob]

Decent improvement.....

https://www.nzx.com/announcements/418597 (https://www.nzx.com/announcements/418597)

New Zealand King Salmon Investments Ltd (NZX & ASX: NZK) reports its financial performance for the six-month period ended 31 July 2023 (1HY24).

Key points include:

• 1HY24 net profit for the year of $10.6 million, compared to a net loss of $24.5 million in 1HY23.
• 1HY24 pro-forma EBITDA of $10.7 million, compared to an EBITDA loss of $12.7 million in 1HY23.
• Sales volumes increased from 2,885MT in 1HY23 to 3,024MT in 1HY24 (an increase of 5%).
• Revenues increased from $80.0 million in 1HY23 to $91.6 million in 1HY24 (an increase of 14%).
• The mortality cost decreased from $22.3 million in 1HY23 to $7.8m in 1HY24.
• Earnings guidance range of pro-forma EBITDA has been revised up to $23.5m - $27.5m (Original guidance range of $21m - $25m provided to market in March 2023).
*1HY23 numbers restated as NZKS is no longer reversing the impacts of NZ IFRS 16 leases as previously communicated.

[BlackPeter]

Decent improvement.....

https://www.nzx.com/announcements/418597 (https://www.nzx.com/announcements/418597)

New Zealand King Salmon Investments Ltd (NZX & ASX: NZK) reports its financial performance for the six-month period ended 31 July 2023 (1HY24).

Key points include:

• 1HY24 net profit for the year of $10.6 million, compared to a net loss of $24.5 million in 1HY23.
• 1HY24 pro-forma EBITDA of $10.7 million, compared to an EBITDA loss of $12.7 million in 1HY23.
• Sales volumes increased from 2,885MT in 1HY23 to 3,024MT in 1HY24 (an increase of 5%).
• Revenues increased from $80.0 million in 1HY23 to $91.6 million in 1HY24 (an increase of 14%).
• The mortality cost decreased from $22.3 million in 1HY23 to $7.8m in 1HY24.
• Earnings guidance range of pro-forma EBITDA has been revised up to $23.5m - $27.5m (Original guidance range of $21m - $25m provided to market in March 2023).
*1HY23 numbers restated as NZKS is no longer reversing the impacts of NZ IFRS 16 leases as previously communicated.

So - how will the predicted biggest El Nino in the last 80 years or so impact on their future mortality numbers? I hear salmon does not like warm water?

The other thing is - if they build this offshore farm, I hope that increasing storm intensity is not an issue.

2 :scared: 4 me :) ;

[Rawz]

P/E under 10 and FCF yield going to be 13% when factoring in $10m investing activities by year end.

Looks pretty good but i dont understand the fish dying part so a bit wary

[ronaldson]

Takeover target in my opinion, now that the deep-water consent is settled and with the improvement in results announced today.

Sanford, Ngai Tahu and Sealord are all realistic possibilities and market activity is directed to amalgamation/consolidation currently for economies of scale and operational efficiencies.

It seems some locations previously licensed for farming are no longer practicable. Quite a few Licences expire in 2024, and I suggest NZKS will now seek to reorientate its future activity to deep-water less affected by the potential for warming seas to disrupt.

[kiwikeith]

Takeover target in my opinion, now that the deep-water consent is settled and with the improvement in results announced today.

Sanford, Ngai Tahu and Sealord are all realistic possibilities and market activity is directed to amalgamation/consolidation currently for economies of scale and operational efficiencies.

It seems some locations previously licensed for farming are no longer practicable. Quite a few Licences expire in 2024, and I suggest NZKS will now seek to reorientate its future activity to deep-water less affected by the potential for warming seas to disrupt.

I cannot help but think if this company was to start all over again it would have located itself further south. They are at the wrong end of the south island. Nice place to live for humans - but the salmon would prefer to be in colder waters further south.

[silverblizzard888]

Great turnaround by the company and a nice upgrade on financial guidance of between $23.5m - $27.5m. Company is managing Salmon mortality and cost well and look set to continue their strong performance. Cash position is building up nicely and gives them options to grow their production apart from waiting on blue endeavour, which will be many years away from happening.

[ralph]

It is a great turnaround some hard work gone into achieving that considering the mortality rate of their stock and very bad decisions made in the past .
I think the big plus for them is any salmon on the market at the moment is selling like hotcakes so the mortality rates which will get worse, still make them profitable .
How long this can last with el nino is going to be Interesting to say the least .
I cannot see another seafood company touching them with the location putting anyone sensible off plus they are a One trick pony.

[Balance]

Great turnaround by the company and a nice upgrade on financial guidance of between $23.5m - $27.5m. Company is managing Salmon mortality and cost well and look set to continue their strong performance. Cash position is building up nicely and gives them options to grow their production apart from waiting on blue endeavour, which will be many years away from happening.

Jack Porus, one of the old timer highly successful investors, recently added to his shareholding - draw my attention back to the stock to have a look.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZK/418843/403740.pdf

Only have to look at the price of fresh & smoked salmon or salmon sushi in the shops/restaurants to appreciate how well the NZ king salmon farmers must be doing.

Issue now is getting volume - and that's a function of a whole host of factors, some of which like water temperature are outside of the control of the company.

I was at a food expo 2 weeks ago where the 3 big salmon companies had stands (Regal(NZK), Sanford & Aoraki) and it was most enjoyable indulging in the free tasting (especially the sashimi from Sanford). I asked the NZK rep why they were not exhibiting Regal (being their premium brand) and he replied that they were allowing the salmon to breed longer and build bulk & weight to fetch premium prices in the export markets. So things seem to be humming along well for them.

Still plenty of negative sentiment out there though as regards this stock - too many disappointments in the last 3 years so will take more runs on the board before the market will get comfortable with investing in the company again.

[BlackPeter]

Jack Porus, one of the old timer highly successful investors, recently added to his shareholding - draw my attention back to the stock to have a look.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZK/418843/403740.pdf

Only have to look at the price of fresh & smoked salmon or salmon sushi in the shops/restaurants to appreciate how well the NZ king salmon farmers must be doing.

Issue now is getting volume - and that's a function of a whole host of factors, some of which like water temperature are outside of the control of the company.

I was at a food expo 2 weeks ago where the 3 big salmon companies had stands (Regal(NZK), Sanford & Aoraki) and it was most enjoyable indulging in the free tasting (especially the sashimi from Sanford). I asked the NZK rep why they were not exhibiting Regal (being their premium brand) and he replied that they were allowing the salmon to breed longer and build bulk & weight to fetch premium prices in the export markets. So things seem to be humming along well for them.

Still plenty of negative sentiment out there though as regards this stock - too many disappointments in the last 3 years so will take more runs on the board before the market will get comfortable with investing in the company again.

Good points, and agree that the demand side should look healthy.

Not sure though, whether this is enough to mitigate their supply risks ... but I reccon we all will know more at the end of the forecasted scorching hot El Nino summer?

[Rawz]

the half year was great because of a few reasons but one was less fish died. They put up a chart of how many fish die over the half years and its so random. Like BP says about how is the El Nino summer going to treat the fish?

Totally puts me off investing in this until the fish dying part at least normalises

[Entrep]

Agree this is still totally uninvestable

[Azz]

These aggressive negative Reputation comments NEED TO STOP.

They are attempts to try and intimidate someone by sending them individual attack messages straight into their inbox.

The ability to place negative Reputation needs to be turned off for everyone. It is a being used as a system of harassment.

[BlackPeter]

These aggressive negative Reputation comments NEED TO STOP.

They are attempts to try and intimidate someone by sending them individual attack messages straight into their inbox.

The ability to place negative Reputation needs to be turned off for everyone. It is a being used as a system of harassment.

Lets face it - the only one destroying your reputation is you.

Your choice :) ;

[Azz]

Lets face it - the only one destroying your reputation is you.

Your choice :) ;

Why are you on this site? It can't be your stock picks, that's for sure.

[BlackPeter]

Why are you on this site? It can't be your stock picks, that's for sure.

You are a funny poster - how would that be your business?

BTW - you don't seem to understand the difference between site and thread. That's serious, that's for sure.

[Azz]

You are a funny poster - how would that be your business?

Because you try and make out you know everything about everything. But it seems to me your track record is poor. It's really a warning to other people.

[Balance]

Jack Porus, one of the old timer highly successful investors, recently added to his shareholding - draw my attention back to the stock to have a look.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZK/418843/403740.pdf

Only have to look at the price of fresh & smoked salmon or salmon sushi in the shops/restaurants to appreciate how well the NZ king salmon farmers must be doing.

Issue now is getting volume - and that's a function of a whole host of factors, some of which like water temperature are outside of the control of the company.

I was at a food expo 2 weeks ago where the 3 big salmon companies had stands (Regal(NZK), Sanford & Aoraki) and it was most enjoyable indulging in the free tasting (especially the sashimi from Sanford). I asked the NZK rep why they were not exhibiting Regal (being their premium brand) and he replied that they were allowing the salmon to breed longer and build bulk & weight to fetch premium prices in the export markets. So things seem to be humming along well for them.

Still plenty of negative sentiment out there though as regards this stock - too many disappointments in the last 3 years so will take more runs on the board before the market will get comfortable with investing in the company again.

Share price on the move - 22% up so far and on big volumes.

Another profit upgrade on the way?

Will have to wait for February before an update.

[percy]

16 January 2024
NZK - Receives positive aquaculture decision for Blue Endeavour open ocean farm
The Board of New Zealand King Salmon Investments Limited (NZK) wishes to advise that we have
received notice of a positive ‘aquaculture decision’ for Blue Endeavour from Fisheries New Zealand.
Fisheries New Zealand (part of the Ministry for Primary Industries) assesses the effects of proposed
marine farm areas on fishing through the undue adverse effects test (UAE test). A proposed marine
farm cannot proceed if it would have ‘undue’ adverse effects as defined by the process.
The decision will be gazetted on the 16 January 2024, followed by a 30-working day judicial review
period. A judicial review would require a judge of the High Court to examine whether the way the
decision was made was in accordance with the law, and no other matters.
We will make another announcement once this judicial review period is over (estimated date 28
February 2024). Once this period is complete, NZK can give effect to its already granted resource
consent.

[iceman]

16 January 2024
NZK - Receives positive aquaculture decision for Blue Endeavour open ocean farm
The Board of New Zealand King Salmon Investments Limited (NZK) wishes to advise that we have
received notice of a positive ‘aquaculture decision’ for Blue Endeavour from Fisheries New Zealand.
Fisheries New Zealand (part of the Ministry for Primary Industries) assesses the effects of proposed
marine farm areas on fishing through the undue adverse effects test (UAE test). A proposed marine
farm cannot proceed if it would have ‘undue’ adverse effects as defined by the process.
The decision will be gazetted on the 16 January 2024, followed by a 30-working day judicial review
period. A judicial review would require a judge of the High Court to examine whether the way the
decision was made was in accordance with the law, and no other matters.
We will make another announcement once this judicial review period is over (estimated date 28
February 2024). Once this period is complete, NZK can give effect to its already granted resource
consent.

This is good news, but rumour has it they are finding it challenging to secure the estimated $ 138 million of funding required

[Balance]

Share price on the move - 22% up so far and on big volumes.

Another profit upgrade on the way?

Will have to wait for February before an update.

Always good to see insiders buying shares.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZK/425381/411653.pdf

[Sideshow Bob]

https://www.nzx.com/announcements/427159

Bold endeavours – salmon farming in the open ocean

Nine years ago, we started the resource consent and consultation process for its Blue Endeavour open ocean salmon farm.

Today, we are celebrating achieving final Government approval to proceed with an aquaculture project that will be a New Zealand-first – and a world-first in farming the King Salmon species in the open ocean.

Carl Carrington, NZKS Chief Executive Officer describes the process to gain resource consent, Fisheries New Zealand approval and to find common ground with iwi, eNGOs, and the community as being ‘very robust.’

Carl describes the next steps, having achieved this milestone, as ‘needing to walk before we can run.’

“From here, we will complete our 18-month programme of rigorous benthic (seabed), seabird and marine mammal monitoring. This will provide a baseline of information, against which we can measure the impacts of a working salmon farm.

“The next step will be a ‘proof-of-concept’ phase, putting in the trial pens from June 2025. This is when it starts to get exciting from a farming point of view – building a smaller-scale pilot farm so that we can trial new infrastructure while monitoring the welfare of our salmon, to ensure they can thrive,” Carl says.

“Aquaculture is a business that rewards patience and caution.

“We will dip our toes into the open ocean, to carefully realise Blue Endeavour’s potential, while continuing to talk to local communities, iwi and others who also have key interests, rights and values around the ocean,” Carl says.

Blue Endeavour, when fully operational, could generate NZD $300million in new revenue per annum. Regional economies will benefit from growth in supporting infrastructure and services required, such as boat servicing, and skilled jobs in farming, engineering, processing and more.

Carl describes New Zealanders’ support for this kind of aquaculture as being ‘incredibly important’ to NZKS.

“New Zealanders love their kaimoana, but not everyone is able to catch it for themselves and for their families. Salmon is a highly nutritious source of healthy protein and consumers are also starting to appreciate that farmed salmon has a low carbon footprint compared to many other animal protein sources.

“We have never taken the support we have for our products and what we are doing for New Zealand aquaculture for granted. This drives us to continuously improve our environmental footprint across the company, and was a motivator during the past nine years of dialogue and consultation to get the green light for Blue Endeavour.

“While we have some way to go until Blue Endeavour is fully operational, today is a day for our company to celebrate the successful completion of this chapter,” Carl says.

Grant Lovell, NZKS General Manager of Aquaculture, describes the open ocean as ‘an exciting opportunity and the next logical step for New Zealand’s aquaculture industry.’

“When we look to the open ocean we are looking at the future for salmon farming in New Zealand – in cooler, deeper waters. It is a bit of a new frontier for our aquaculture industry – but one that we are entering one step at a time, backed by science and evidence-based decision making,” Grant says.

During an extensive planning phase, NZKS undertook comprehensive assessments of the environmental effects and applied independent science from the Cawthron Institute, SLR Consulting and Robertson Environmental.

“Putting fish pens out in the open ocean is not for the faint hearted. We will be working in a dynamic environment, with waves up to 10 metres high – anyone that has caught the Cook Strait ferry knows what we are talking about.

“We will be trialling technologies and investing in mooring grid infrastructure to ensure we are able to adapt to the Cook Strait conditions” Grant says.

About Blue Endeavour

Blue Endeavour will be New Zealand’s first open ocean aquaculture farm. It will also be the world’s first farm of its type for the valuable King Salmon (Chinook) fish species.

The farm will be located 7km off Cape Lambert in the Cook strait. It will comprise two blocks of ten circular pens; the total farm will be less than 12 surface hectares in size. When fully operational, Blue Endeavour will have the capacity to produce 10,000 metric tonnes of chinook salmon.

Images, maps, key metrics, a timeline of the resource consent process and research reports are available online: https://www.kingsalmon.co.nz/open-ocean-blue-endeavour/

About farming the King Salmon breed

King Salmon is a niche salmon breed that has put New Zealand on the global map as a premium export product that is also enjoyed by our domestic consumers.
Representing less than 1 per cent of global salmon production, the King Salmon species usually sells for significantly more than the price of Atlantic salmon. Atlantic salmon is the predominant salmonoid species sold globally. Internationally NZKS are unable to meet demand, particularly for our premier ‘Ora King’ products which has a significant following in the United States.

Open ocean salmon aquaculture is the farming of salmon in enclosed fish pens, anchored in place to the seabed, in exposed marine environments.
NZKS has farmed salmon for more than 35 years in the Marlborough Sounds, and with nursery, hatchery and processing land-based operations in Nelson, Tākaka and Canterbury.

The further expansion of salmon farms in inshore areas is unlikely in New Zealand – open ocean aquaculture is recognised as being critical for the future sustainable growth of the salmon sector.

The Ministry of Primary Industries recently commissioned a report on the life cycle analysis of farmed King Salmon. This report concludes that farmed King Salmon has a lower carbon footprint than most land proteins.

[Toddy]

What kind of ball park capital are we talking about will be needed to build the operation?

[aquaman]

I hope this works well for them but i have concerns about the ability for any structure anchored to the sea bed to withstand the extreme weather conditions known for this area of Cape Lambert. There is a lot riding on a huge investment in design and infrastructure which would be expected to have been though a rigorous test phase. A stormy sea is unforgiving.

[RGR367]

It's risky but remember that our SPP price has already been doubled at today's price. This is the no guts no glory moment to add more if you're a holder I think.

[Sideshow Bob]

https://www.nzx.com/announcements/428632

New Zealand King Salmon Investments Ltd (NZX & ASX: NZK) reports its financial performance for the 12 month period ended 31 January 2024 (FY24). Key points include:

• FY24 net profit for the year of $28.5 million, compared to a net profit for the year of $1.9 million in FY23.
• FY24 pro-forma EBITDA was a profit of $24.5 million, compared to an EBITDA loss of $2.7 million in FY23.
• Mortality expense reduced from $25.9m in FY23 to $12.6m in FY24.
• Revenues increased from $167 million in FY23 to $187 million in FY24 (an increase of 12%).