SeaDragon

[biker]

I think you should either a) do some proper research; or b) not spread misinformation given this proper research. To claim Hoki is one of the "least oily fish" out there is a blatant lie, though your claim that it's half of salmon appears to be true. A quick Google search will give you references that hoki is considered a rich source of Omega 3.

The second blatant piece of misinformation is that - and you know this - fish oils are not extracted from the fillet. Omega 3 is filtered out by the liver and is hence the place where the bulk of omega 3 oil is found.

Where are they going to get enough Hoki livers to produce 5000mt of oil? Is SEA new-factory hype and basically the future growth and profitability of the company not based on southern ocean Hoki oil? That's the impression I got from the capital raise.

[Dentie]

Steady on there, Sport - Apathy actually made some good points which he has backed up with discussions around his concerns.

As a shareholder, you should get yourself comfortable too?

I just don't want this thread to get tainted in the same way the SNK thread did (which I know you can relate to). Different people grind their axes in different ways.

[blah]

Where are they going to get enough Hoki livers to produce 5000mt of oil? Is SEA new-factory hype and basically the future growth and profitability of the company not based on southern ocean Hoki oil? That's the impression I got from the capital raise.

I don't think I can give you a good answer as I have no numbers. But I do want to point some things out. Seadragon also processes tuna (sourced from Fiji), salmon and anchovies on top of the Hoki. In the past Seadragon has also processed krill.

But to bring some perspective re the 5000t of oil, Edison predicts the plant will produce 1475t in the 2016 year. One can rubbish the Edison report all they want, but presumably the Edison estimate came from the Seadragon management (you can then rubbish this as hype). And presumably this number was made in reference to current (capacity limited) production volumes, current supply of raw materials etc.

I understand your concern re raw material and plant utilisation though. In any case, I'd rather Seadragon be constrained by supply than by demand

[Apathy]

I think you should either a) do some proper research; or b) not spread misinformation given this proper research. To claim Hoki is one of the "least oily fish" out there is a blatant lie, though your claim that it's half of salmon appears to be true. A quick Google search will give you references that hoki is considered a rich source of Omega 3.

The second blatant piece of misinformation is that - and you know this - fish oils are not extracted from the fillet. Omega 3 is filtered out by the liver and is hence the place where the bulk of omega 3 oil is found.

This is just so comical I can't be offended by the lie comment! All these years I have been eating salmon and thinking I was getting my intake of Omega 3!

Reading advertising blurbs on Google is not research the following link gives a decent summary http://www.heartfoundation.org.au/Si...andseafood.pdf
And to me it does appear that Hoki sits at the bottom end of the list?
The comparison of fillet content was for benchmark only and am well aware that no one processes fish fillets for oil. This is for reasons of cost – not because there isn’t any Omega 3 in the fillets. According to Plant and Food it is typically 40%.

Extraction will be from the residue frames and gut including the liver which will have a highest concentration of any part of the fish.
But math doesn’t change - whether you work on .2% of total mass of 50% of a liver that is probably less than 1/2% of total weight isn't going to make a lot of difference.
Doesn’t matter how you want to ‘fillet’ it the numbers don’t add up.

[Apathy]

I don't think I can give you a good answer as I have no numbers. But I do want to point some things out. Seadragon also processes tuna (sourced from Fiji), salmon and anchovies on top of the Hoki. In the past Seadragon has also processed krill.

But to bring some perspective re the 5000t of oil, Edison predicts the plant will produce 1475t in the 2016 year. One can rubbish the Edison report all they want, but presumably the Edison estimate came from the Seadragon management (you can then rubbish this as hype). And presumably this number was made in reference to current (capacity limited) production volumes, current supply of raw materials etc.

I understand your concern re raw material and plant utilisation though. In any case, I'd rather Seadragon be constrained by supply than by demand

Supply constraint isn't really constraint unless you have a market. SEA haven't actually made any claims as to volumes or turnover going forward -apart from press article talking about $7mill this year (with $10m purchases).

There is always an element of hype and my issue isn't so much with that as it is the use of Edison to do it at a safe arms lengths. If it is good enough for SEA to promote the Edison report to shareholders they should be making the same forecasts - or dismissing them.

[Scooter]

27 August 2014

SeaDragon signs new working capital facilities; new factory progresses

New Zealand’s largest refiner and blender of high-quality fish oils, SeaDragon, has
agreed on a new $3 million working capital facility.

The facility is to be used to fund raw materials secured under the supply agreement for
its existing plant announced in March. Under that agreement, SeaDragon has contracted to
buy raw material more than sufficient to cover squalene production budgeted for the 2015
financial year and beyond.

SeaDragon Chief Executive Ross Keeley said: “This facility highlights SeaDragon’s strong
position. It recognises the strong demand for our products. It also recognises the
security provided by the two squalene sales contracts announced in May and June.

Mr Keeley said SeaDragon had meanwhile received notification that the Resource Consent
for the manufacture and processing of fish oil at the new refining facility in Nelson had
been approved. Clearing of the site had now commenced and construction would begin after
the receipt of the building consent.

“SeaDragon is in good shape. Our new processing facility, which will allow the company to
expand its production of Omega-3 fish oils, will open a new frontier of growth for the
company," Mr Keeley said.

"We remain on track to commission the plant next year. Meanwhile, the new working capital
facility combined with a secure supply of raw material provides a solid underpinning for
the existing business. We are looking to the remainder of the financial year with
considerable optimism.”

Contact
Ross Keeley
SeaDragon Chief Executive Officer
Telephone: 03 547 0336

About SeaDragon: www.seadragon.co.nz

SeaDragon (NZX:SEA) is New Zealand’s largest refiner and blender of high-quality
internationally certified concentrated fish oils and fractions, including Omega-3 oils.
Our oils are sourced from fish caught in the clean and pure waters around New Zealand, in
the Southern Ocean, and elsewhere. We have more than 20 years’ experience processing fish
oils and we are recognised for the quality and purity of our products. We supply health
supplement manufacturers around the world to meet the burgeoning demand for pure,
high-quality fish oils, which are scientifically proven to deliver significant human
health benefits such as lowering the risk of heart disease, improving brain function and
joint health. The majority of our supply is exported.

[Balance]

I like the page on their website "Our Growth'

Check it out.

http://www.seadragon.co.nz/index.html

[Dentie]

I like the page on their website "Our Growth'

Check it out.

http://www.seadragon.co.nz/index.html

Yes I agree with you Balance. It is great to see they have added this page to the website in advance of their growth. Otherwise they would be in catch up mode...and potential to be very messy. Great to see them thinking ahead and managing things.

[Apathy]

I like the page on their website "Our Growth'

Check it out.

http://www.seadragon.co.nz/index.html

Hysterical - reminiscent of the Bob Jones book - The Achievements of the Third Labour Government. Its brilliant - a page on growth that is empty except the 'under construction' note..

[Apathy]

27 August 2014

SeaDragon signs new working capital facilities; new factory progresses

New Zealand’s largest refiner and blender of high-quality fish oils, SeaDragon, has
agreed on a new $3 million working capital facility.

The facility is to be used to fund raw materials secured under the supply agreement for
its existing plant announced in March. Under that agreement, SeaDragon has contracted to
buy raw material more than sufficient to cover squalene production budgeted for the 2015
financial year and beyond.

SeaDragon Chief Executive Ross Keeley said: “This facility highlights SeaDragon’s strong
position. It recognises the strong demand for our products. It also recognises the
security provided by the two squalene sales contracts announced in May and June.

.

Anyone think it strange that there is a price sensitive press release to announce that they have the working capital facility to fund the purchases they committed to 5 months ago (another price sensitive press release)? Does this release mean they didn't have the facility to purchase at the time they committed? Now that would have been a genuine price sensitive press release!