CSS Clean seas tuna

[ratkin]

I urge you all to have a good look at this little gem.
Picked this in the aussie share comp and have been a holder since reading a very bullish article last year.

This week they achieved a world first and managed to get blue finned tuna to spawn in captivity. They have been dreaming of this for ten years and the news is massive.

The implications are huge, wild stocks are under tremendous pressure , the company has plenty of blue sky , in the current environment many investors appear too depressed to appreciate what a massive opportunity this company represents.

Dont take my word for it, go and do some digging , you will find it most rewarding

[bear]

I urge you all to have a good look at this little gem.
Picked this in the aussie share comp and have been a holder since reading a very bullish article last year.

This week they achieved a world first and managed to get blue finned tuna to spawn in captivity. They have been dreaming of this for ten years and the news is massive.

The implications are huge, wild stocks are under tremendous pressure , the company has plenty of blue sky , in the current environment many investors appear too depressed to appreciate what a massive opportunity this company represents.

Dont take my word for it, go and do some digging , you will find it most rewarding

I agree Ratkin

been on my watch list for 3 - 4 months - wanted some at $1.50 - sometimes you just gotta buy "at market"

cetainly blue sky potential and definately still in the growth phase - but this news removes a lot of risk levied on this ones price

Bear

[ratkin]

Just announced

Fertilised Tuna eggs resulting from yesterdays reported spawning event were transferred to the Clean Seas Tuna hatchery tanks on Tuesday 4 March 2008.
This morning at 10:10 CST reports were received from the hatchery that eggs have hatched releasing live and active Tuna larvae.

More good news

[ratkin]

Southern bluefin tuna are one of the most valuable fish species, prized for their use in sushi and sashimi.
http://aycu11.webshots.com/image/45090/2003494738099370330_rs.jpg
Original image by OpenCage (http://commons.wikimedia.org/wiki/Image:Thunnus_thynnus.jpg)
They also happen to be close to extinction, with population levels about 92% lower than they were when industrial fishing for the species began in the 1950s. A 2006 study said that catch levels of the fish are unsustainable, with a 50/50 chance that all the fish capable of laying eggs will be extinct within 12 years if levels continue at their current pace.
While the bluefin tuna exists elsewhere, the extinction of the southern variety could deal a blow to the ecology of the Pacific. That’s why a recent announcement by a seafood company was met with such enthusiasm.
Clean Seas Inc. announced that is successfully collected egg and sperm from captive bluefin tuna in South Australia. If baby fish can be created from this captured material, it could mean a revival in the species’ fortunes.
The discovery could mean year-round, farmed production of the fish. With farmed fish available, current fishing methods that radically lower the fish’s population levels could be obsolete. It could bring the fish back from the brink of extinction.
Clean Seas has yet to create baby bluefin, but it has had success with similar projects over the years. The company is already successfully farming yellowtail kingfish.
The fish farming business, also known as aquaculture, has seen its fortunes rise in recent years. While the most famous story on fish farming in the news was when a salmon farm was wiped out by jellyfish recently, the news from the industry has generally been more positive. As more and more people speak with their wallets on environmental issues, sustainably raised fish has become more popular in markets across the globe. Clean Seas Inc. stands to profit handsomely from their new findings, with shares rising over 30% at points after the announcement. Who says there’s no money in a green economy?

[moe]

Theres currently an Australian fishing quota for southern bluefin tuna of 5200 tonnes a year in Australia, CSS recon they will be able to match this quota in its own production within a few years.

Potentially they will be able to supply world markets year round (out of season) with fresh product, which normally retails between $30-50 a kg. There are no current barriers to trade in the big international markets (EU, US, China etc) due to diminishing natural supplies.

[macduffy]

No posts on this for quite a while!

What took my attention recently was the addition to the board of John Ellice-Flint, formerly of Santos ( as chairman) and Tipene O'Regan of Ngai Tahu, plus a new CEO. The founding family's interest has been diluted by a recent new issue.

T O'R's addition is particularly interesting and I wonder if this has implications for Ngai Tahu Fisheries, for the mutual benefit of both companies?

It seems that commercial farming/harvesting of Southern Bluefin tuna is still some time (years?) away but CSS claim to have achieved a world first in completing the life-cycle of the SBT - whatever that implies! Meanwhile, farm production of kingfish seems to be proceeding although the company isn't yet turning a profit.

Any updates from anyone familiar with this company?

Disc: Not holding.

[bermuda]

No posts on this for quite a while!

What took my attention recently was the addition to the board of John Ellice-Flint, formerly of Santos ( as chairman) and Tipene O'Regan of Ngai Tahu, plus a new CEO. The founding family's interest has been diluted by a recent new issue.

T O'R's addition is particularly interesting and I wonder if this has implications for Ngai Tahu Fisheries, for the mutual benefit of both companies?

It seems that commercial farming/harvesting of Southern Bluefin tuna is still some time (years?) away but CSS claim to have achieved a world first in completing the life-cycle of the SBT - whatever that implies! Meanwhile, farm production of kingfish seems to be proceeding although the company isn't yet turning a profit.

Any updates from anyone familiar with this company?

Disc: Not holding.

This is extremeley interesting. A mate of mine has mentioned this to me twice now and although it sounded good I sort of doubted it. It is the first time I have noticed the thread.

Worth a 3rd look I think.

[ratkin]

Not one of my better investments , sold up about eighteen months ago
Decided the management cant be trusted.
Maybe with the new people on board things will improve , hope so for those currently holding

[Lizard]

Someone attached the jumper leads today, though finished off the high. One for the watchlist for a recovery punt-trade?

Though too soon to be sure where fair value is, the downside is protected with no debt and adequate cash for foreseeable future.

[Snow Leopard]

http://imgsrv.gocomics.com/dim/?fh=8e98d0cda75770181a25a1c2900599fd&w=900.0

However buying into the loss leader publisher of the "Tuna Spawning Update (http://stocknessmonster.com/news-item?S=CSS&E=ASX&N=177793)" is not for me.

Better investing in a few cans
http://www.johnwest.com.au/wp-content/uploads/2010/04/John-West-Tuna-Olive-Oil-Blend-185g-S047646-2D_thumb.jpg

regards
Paper Tiger

[Lizard]

Yes, 'tis not for your breed PT - more for the likes of AA.

However, they do have our own legendary Paul Steere (http://www.stuff.co.nz/nelson-mail/features/weekend/3062970/Big-fish-out-of-the-water) on the Board now... all should be fine, eh?

They also probably have nearly as much cash as market cap after the recent cap raising.

[winner69]

Oh dear ..... the tuna didn't like the hydrogen peroxide bath and quite a few are now deceased .... or as the announcement said a 'Fish mortality event'

However market cap down to $43m .... if punters knock the price down a bit more could be a good time to be brave

On the watch list this goes


http://www.smh.com.au/business/clean-seas-takes-a-bath-on-kingfish-loss-20100907-14zq0.html

[percy]

Just when you thought things couldn't get worse,they got a lot worse.!!!!!! Gut trouble.!!!!!!
Good to see the SP moving up,showing strength,but looks as though the seller at 3.3cents does not agree.May take a little time for the SP to hit the January 2008 high of $2.00.Don't hold.Bit fishy for me.
Sorry offcourse the high was $2.20 november 2007.

[Lizard]

Turned out the kingfish suffered from a Taurine deficiency in their diets (same nutrient that cats also need from dietary sources, while many other mammals can also biosynthesise it.).

For now, the tuna programme is suspended while they try to get back to profitability from Kingfish production. Kingfish are going pretty well - lots of progress in both breeding and farming, while prices are firming and weakening AUD also assisting. Recent successful capital raising has shored up balance sheet and, provided no major mortality events, things may even start to go their way for a year or two...

Recent cap raising was at 1.1cps and price has climbed rapidly this week, hitting 2cps, before falling back (currently 1.8cps). Provided progress towards profitability is faster with a bit of a tailwind (and fingers-crossed for this months fingerlings), the cash of $5.5m in hand may just about get them through to profitability.

Best investor background reading is the March Investor Update: http://www.asx.com.au/asxpdf/20130306/pdf/42dh9zdx6c7spg.pdf

Aiming to raise production to 1100 - 1500 tpa over next 2 years and then to 3000 tpa. At about 500,000 fingerlings planned for release October, 5% mortality and 1.5kg harvest weight, may be aiming for about 700-750 tonne harvest in the coming season? If they can pull this off, then have to pull of the next year's harvest, so it is probably too soon to view CSS as a potential investment, but may be close to finding a bottom, particularly if news flow remains in positive territory for a while. A small gamble at 1.3 - 1.5 cps might work if it pulls back?

[Snow Leopard]

...At about 500,000 fingerlings planned for release October, 5% mortality and 1.5kg harvest weight, may be aiming for about 700-750 tonne harvest in the coming season...

When fingerlings grow up do they become fish-fingers?

Best Wishes
Paper Tiger

[Lizard]

I bought a few yesterday to make myself look a bit closer - for some reason, ownership clarifies my mind!

Having looked more closely, I doubt I will be a long term owner - or even a medium term owner.

It appears to me that revenues have only been sustained by selling down stock from previous, higher volume harvests. On the basis of what I can see (and without being too sure on seasonal timing/stages), I would think sales receipts will continue to fall for at least another year to perhaps as low as $8m, possibly leaving a substantial cashflow deficit, even at reduced cost base. This fits with the "risks" section of the rights issue prospectus where the need for future working capital was clearly outlined.

Even if they hit their 3000 tpa Kingfish production for revenue of about $40m, then I would guess maybe $3-$4m NPAT max from the Kingfish operation might be possible in 4-5 years time. Given the risks and possible dilution, a market cap of $14m is probably too high for now.

The real value would be IF they were ever able to successfully develop the tuna aquaculture IP. The longer the programme is suspended due to lack of funds, the more difficult it will become to resurrect. It is difficult to see the Kingfish programme providing enough cashflow to fund it - although a successful commercial operation may provide the market confidence to allow further funding to be raised.

[Lizard]

Nice update out today, so gives me the chance to take a quick 0.3cps profit... will go back to watching the quarterlies.

[kiora]

Nice increase in SP Lizard ! Another capital raising though .Long term prospects pretty good IMHO if they continue to sort issues
http://stocknessmonster.com/news-item?T=vsvi5PfIOJYR9xKOoLwrCC&E=ASX&S=CSS&N=758998

[Lizard]

Well I sold out too early here at 2.1cps...

Things I didn't foresee:

Managing to avoid the dilution down-draft and undertake a substantial capital raising at nearly 3 times the share price of the previous raising, just 7 months earlier.
A $6m R&D rebate.
Substantially increased margins on kingfish as a more premium market has become established (wonder if they are being able to sell at premium for farmed fish on the basis of avoiding any risk of radiation exposure from the leaks at Fukushima?)
Substantial improvements to grow out rates
The forecast of a $1.5m to $3m profit for the first half.


Therefore, have just bought back in at 3.8cps.

While the profit forecast contains a number of one-off factors that essentially mean the underlying NPAT is almost certainly still a loss, the figures suggest the underlying loss may not be too bad, they are unlikely to require further capital and they are now well on the way to establishing a profitable scale of operation. So I believe my earlier profit forecast of "maybe $3-$4m NPAT max from the Kingfish operation might be possible in 4-5 years time" is probably now too modest. The $3-$4m could be achieved much earlier and the profit in 4-5 years may well be 2-3x that, with no further dilution necessary.

The recent spp is still underway and will result in the issue of shares at 3.2cps to those existing holders that apply, so there should be reasonable opportunity to get in at below 4cps for the next few months. While fish farming is a high risk operation, the tide of "luck" seems to have turned in favour of CSS for now. Plus I personally get a kick out of having a small investment in an operation that could benefit progress in sustainable fisheries.

[Snow Leopard]

...Therefore, have just bought back in at 3.8cps.

While the profit forecast contains a number of one-off factors that essentially mean the underlying NPAT is almost certainly still a loss...

You may consider this a bit much coming from me but..

You seem to have a tuna obsession.

Best Wishes
Paper Tiger

[Lizard]

You may consider this a bit much coming from me but..

You seem to have a tuna obsession.

Best Wishes
Paper Tiger

I have been accused of many obsessions, but this one is new. :) Although, forgive me for pointing out that it is Kingfish and not a tuna in sight for now....

[percy]

I have been accused of many obsessions, but this one is new. :) Although, forgive me for pointing out that it is Kingfish and not a tuna in sight for now....

Whatever,still fishie!!! ?????

[Joshuatree]

Anyone thought of KingfishPearl farming. Inserting a bunch of seed pearls in little pockets in a Kingys thingy (intestine). Harvesting fillets and twinsets:)

BTW i read somewhere that fish farming tonnage now exceeds Wild catch.

[Lizard]

I guess they could always feed the kingfish on shucked oysters - start a new marketing theme!

[Snow Leopard]

I have been accused of many obsessions, but this one is new. :) Although, forgive me for pointing out that it is Kingfish and not a tuna in sight for now....

It all looks and tastes great mixed with the best Canadian mayonnaise, a few capers, sprinkled with freshly ground black pepper between two slices of good freshly baked wholemeal bread.

Best W

[Joshuatree]

A yummy thread indeed. BTW……...

You can play a fish but you can't tuna piano:p

[Lizard]

Yes, and the share price is coming along quite swimmingly, I might note.

Up to 5cps this afternoon, off my purchase 6 days ago at 3.8cps...

[Lizard]

Yes, and the share price is coming along quite swimmingly, I might note.

Up to 5cps this afternoon, off my purchase 6 days ago at 3.8cps...

Make that 5.8cps at close... looks like I'll be picking up the tab at the after-market lounge tonight!

[Lizard]

Nice update out today and looks like they may well have an underlying profit a year ahead of schedule due to great grow-out rates and low mortality. What is more, presuming the improved growth is sustainable and the market has now expanded since their previous attempts at higher sales volume, then it seems we could see bigger future profits from a sustainable operation than were originally considered possible for the Kingfish.

Also, they are reversing a previous write-off relating to the tuna business, so perhaps they are looking at re-starting this work next year?? If they can now successfully transfer some of the improved technology to SBT, the sky would be the limit (I have no idea if this is likely, but their improved technical ability is certainly encouraging!).

While it topped out at 5.8cps very quickly before, it now looks likely to be able to hold this level barring unforeseen adverse events.

[percy]

Well done for keeping the faith.
Looks strong on the charts too,"barring unforeseen adverse events!"

[percy]

Well done for keeping the faith.
Looks strong on the charts too,"barring unforeseen adverse events!"

[percy]

Well done for keeping the faith.
Looks strong on the charts too,"barring unforeseen adverse events!"

[Lizard]

Nice clean out today, with over 10% of stock traded to close up at 6.4cps. Maybe just still day traders all over it though, because depth doesn't have great volume either side.

[Lizard]

CSS on another run through to 8.5cps... unfortunately I sold out again when I needed some cash recently. However, I think they continue to go from strength to strength. Not cheap here, but maybe worth considering on weakness.

[Wolf]

After watching for a while i have bought my first parcel today.

Quarterly and interim report due out shortly which i expect may provide a catalyst for a jump in share price as the majority of Yellow Tail King Fish growth occurs in the summer months so expecting big numbers. A bit of ramping on HotCopper so hope its not a case of buy the rumor sell the fact.

Margins

Clean Seas forecasts in the near term that for every kg of Kingfish they will make $3 of EBIT/kg. I feel this is conservative as it was forecasted back when the price of kingfish was $12.50/kg and is now apparently $14.50/kg although I suspect is actually higher. As the firm increases supply the price may decrease but according to management demand is currently outstripping supply. While i've never considered King Fish a particularly good eating fish i see considerable up side to the price rather than downside in relation to other fish prices and growing demand.

The forecast was also made when fingerlings survival rates was 50%, now 85%-90% and fish weigh between 4.0kg-4.5kg up from 2.8kg-3.5kg. With selective breeding, fish are expected to increase in growth by 10% per generation so this will continue to increase. With greater survival rates and greater weights margins should expand. The firm’s costs should also decline as through R/D the hatchery become more efficient and healthcare becomes better. 40% of the cost is feed so through R/D this should also decline. Overall I suspect greater margins than what the firm originally forecasted in the future. So possible room for upgraded guidance.

Management Sales Forecast


Forecasting 1350 tonnes in 2014/15 up from 571 tonnes in 2013/14
 In 2015/16 we anticipate sales around 2,000 tonnes
 Current planning is to achieve 3,000 tonnes per annum sales by 2018/19
 Current capacity exists in the hatchery and farm to achieve 6,000 tonnes per annum



Again i think there is possible upside with greater biomass production and demand.

Tuna

The research into Tuna has been cut dramatically as it costs a considerable amount of money. In 2015 the company will decide in which direction to go with it. Currently they can breed them up to 500g before they die due to the suspected cold waters. With global warming sea's are expected to get warmer rather than colder which benefits pelagic fish such as King Fish and Tuna. While i am dubious about farming Tuna any significant progress would be blue sky material IMHO.

I prefer Clean seas Tuna over Tassal who are having issues farming salmon due to warmer water temperatures.
CSS with a market cap of 80m may even be a possible take over candidate for TGR, market cap 540m.

Potential catalysts for re rating are
*Upgraded guidance due to sales increasing ahead of plan and greater margins.
* Partner joining them in Tuna development
* Further R/D break through
* Rise in YTKF price

Risks
· Behind schedule
· Fall in YTKF price
· Aquaculture disaster
· BlueFin tuna project failure

Technically there is support at 7c and Resistance at 8c, due to the volatility i'm looking to average in on further weakness.
Overall this is a niche operator and while is not cheap, has large growth opportunities.

I don't really post so thought i'd try to and just share my current thoughts and maybe get told where i'm wrong.

Cheers

[Wolf]

I made a mistake in terminology in my previous post, targeted margins are not $3 EBIT/kg but $3/kg before overheads.

Second quarter out today reaffirming guidance 1350 Tonnes FY2015 and to have positive underlying net operating cash flow's in the 3rd quarter. As well as having significantly greater growth rates than budgeted.

For the second quarter there was sales volumes of 292 tonnes and sales revenues of $4.9m. Which is a sales price of $16.80 up from $14.50.
I emailed the company regarding room for larger sales and margins and received no comment due to their price sensitive nature but was told some of my questions surrounding them would be answered in the half year report due in the 3rd week of February.

On other news I actually shot a kingfish last week, and it was pretty good eating :t_up:

[RGR367]

...........
On other news I actually shot a kingfish last week, and it was pretty good eating :t_up:

CONGRATS as you made me salivate for it :t_up: I would eat a freshly caught one as a sashimi.

[Wolf]

CONGRATS as you made me salivate for it :t_up: I would eat a freshly caught one as a sashimi.

Haha cheer's, that's how Clean Sea's does it too but i like my fish cooked so i just bread crumbed it :p

[fish]

Haha cheer's, that's how Clean Sea's does it too but i like my fish cooked so i just bread crumbed it :p
You are missing out wolf
Its an acquired taste but so good for you
A good way to avoid waste after filleting-I never manage to get all the meat of the frame on the 2nd side.
So now I go back over it taking every morsel of flesh-eating some raw maybe with a bit of wasabi or soy-if a lot of fish I drop the surplus into lime/lemon juice-vacuum pack in small parcels in strips and freeze with no air but just excess citrus around the fish.
Hot summer day-no need to cook at all-just add the parcel to salad-delicious,filling and helps to keep the weight down.
kingfish,kahwai,trevally and tuna are great for this.
Must be so fresh-catch,kill and bleed and straight into salt ice slurry