Murray Cod Australia Limited · ASX:MCA
Murray Cod Australia — Investor Presentation (July 2019)
29 slides from Murray Cod Australia's investor presentation, July 2019
Slide 1: Murray Cod Australia Ltd – July 2019
July 2019 M u r r a y C o d A u s tr a l i a L td ASX Code: MCA L I F E TA S T E S B E T T E R O U R WAY 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Murray Cod Australia Limited (the *Company’). It does not purport to contain all the information that a prospective investor may require in connection with any potential investment in the Company. You should not treat the contents of this presentatio
Slide 3: Corporate: Share Price Performance and Volume
CORPORATE Share Price Performance and Volume 5,000 0.25 Stock Overview 4,500 ASX code MCA 4,000 0.20 Share Price (25 July 2019) $0.195 Market capitalisation (@ 19.5 cents) $89.0m 3,500 Shares on issue 456.4m Volume('000) 3,000 0.15 Price ($) Options on issue 92.7m 2,500 Deferred Consideration & Perf
Slide 4: MCA - Investment Proposition
MCA - INVESTMENT PROPOSITION Luxur y Product: High Growth: Green & highly sought after as a Production capacity sustainab le : Grown in table fish by consumers 40 tonnes pa in 2017 natural habitat, strong and chefs now over 1000 tonnes. synergies with irrigated Aiming for 10,000 tonnes agriculture,
Slide 5: A Unique Opportunity – Land Based Aquaculture
A UNIQUE OPPORTUNITY – LAND BASED AQUACULTURE Global Population Growth, Pressure on Oceans, Declining wild fish stocks and Climate Change Global demand for protein – especially for high quality fish protein Innovation via existing local infrastructure and a rare premium native fish 5
Slide 6: Global Aquaculture Production
GLOBAL AQUACULTURE • Aquaculture 80 million tonnes 53% • Wild Catch 71 million PRODUCTION • tonnes 47% Aquna Cod 10 thousand tonnes target (before 2030) • Australia total Aquaculture production 97 thousand tonnes China’s entire production Alaskan Pollock Catch 67 million tonnes 1.5 million tonnes On
Slide 7: What Is Aquna Cod
WHAT IS AQUNA COD • Capable of growing to be of the world’s largest freshwater fish • Historically a Premium Table Fish • Creamy white flesh with firm texture and mild taste (similar to Soon Hock) • In 1880’s highly profitable commercial fisheries sprang up in the Murray-Darling Basin and Australia
Slide 8: Aquna Cod Well Suited to Aquaculture
AQUNA COD WELL High stocking density tolerance SUITED TO Tolerance for handling and grading AQUACULTURE Medium – fast growth rate (1kg in 12 months) Easy to wean to artificial diets Relatively broad water quality requirements Efficient food conversion ratio (1.1 to 1) Existing/latent domestic and ex
Slide 9: MCA Has 2 Distinct Differences as a Listed Aquaculture Company
MCA HAS 2 DISTINCT DIFFERENCES AS A LISTED AQUACULTURE COMPANY 1. Land Based 2. Aquna Cod is one of the Production Model world’s rarest luxury seafoods 9
Slide 10: Land Based Model
LAND BASED Env ironmental Risks Allev iated • No waste water leaves the property Operational Risk and Cost Reduction • No bad weather issues MODEL • Risk of disease transfer to native populations almost non existent • • No Seals or Sharks Easy access for land vehicles and by foot • Purpose built pon
Slide 11: Land Based Model
LAND BASED MODEL Lower Capital • Lease model is • MCA operates the site • Operating costs borne ‘Capital Lite’ • MCA uses its Pen by MCA until fish are Requirements • Farmer builds the site Systems and fish stock saleable – 18 months including all earthworks, approx plumbing and electrical • 15 year
Slide 12: Global Luxury Food Brand
GLOBAL LUXURY FOOD BRAND 3 Product Lines this year Future Development Fresh Fish Fish Skin Fish Fat -Cooking Product (not frozen) with high Omega fats • Cooked Sashimi Fish Stock • Health Product Hot Smoked 12
Slide 13: Global Luxury Food Brand: Life Tastes Better Our Way
GLOBAL LUXURY FOOD BRAND Life Tastes Better Our Way MCA believe the best product comes from the best approach. We want to make an impact on peoples plates and their wider lives by inspiring a better way to deliver the future of food production. The MCA stor y is built Premium taste credentials Innov
Slide 14: Aquna Cod Is Not a Commodity, It's a Luxury Food Product
AQUNA COD IS NOT A COMMODITY IT’S A LUXURY FOOD PRODUCT Po s i t i o n e d t o c o m m a n d h i g h e r M u r r a y C o d d o e s n o t g ro w a n y wh e re m a rg i n s else in the world or Australia ( just the Murray Darling Basin) To p c h e f s ( D o m e s t i c a n d I n t e r n a t i o n a l
Slide 15: Product Differentiation
PRODUCT DIFFERENTIATION SAME MARKET ON SAME DAY IN MELBOURNE April 2017 Competitor’s Fish Aquna Cod Recirculating Aquaculture Systems Produced Fish. MCA Pond Grown fish – Now Branded Aquna 15
Slide 16: Heston Blumenthal
GLOBAL RECOGNISED PATNER HESTON BLUMENTHAL MCA Shareholder & Advocate “ We are delighted to be working with MCA. The innovative way they have created a luxury fish product by combining natural processes evolved over millions of years with cutting edge technology aligns with the way I approach food a
Slide 17: Barriers to Entry
BARRIERS TO ENTRY Murray Cod is unique to Brood stock difficult to source – Limited spawning production Murray Darling River System. regulated by licensing. facilities in existence. These fish grow in any other river system in the world. Ideal environmental growing The region’s availability of good
Slide 18: Limited Competition
LIMITED COMPETITION Market is in infancy It was estimated in Re-introduction of Quality and taste of stage with existing 2018, aquaculture Cod in Australia to Aquna cod is better than production limited to production raise market awareness wild caught fish due to small scale private of Murray Cod wa
Slide 19: Location Advantage
LOCATION ADVANTAGE Irrigation supply network of Murrumbidgee Irrigation Area (MIA) Benerembah Irrigation District Wah Wah Irrigation District Storages or wetland Mirrool Irrigation Area Yanco Irrigation Area Irrigation supply canals Tabbita Irrigation District Murrumbidgee Irrigation Area Major road
Slide 20: Other Major Farmed Species in Australia
OTHER MAJOR FARMED SPECIES IN AUSTRALIA Aquna Murray Cod – Barram und i – Salmon – Prem ium White White Flesh Pink Flesh Flesh Unique to Murray Darling Basin of Widely Spread throughout Wild fish are spread around Australia. Northern Australia and Asia. Northern Hemisphere. No wild catch to compete
Slide 21: Business Model
BUSINESS MODEL Hatchery 35mm Nursery Stock is kept in recirculated tanks with environment controlled until 100 grams in Cages Sold to Contract Growers size Fingerlings Fingerlings sold to Contract to MCA In 18 Mths 1.5-2Kg Growers for ponds for Murray Cod is grow-out est. grow-out harvested by MCA @
Slide 22: Numbers – The Basics
NUMBERS – THE BASICS Current number of fish in stock 1.5 million Premium ’Aquna ’ $18.00 - $22.00 Current Pond Stock is 850,000 fish Murray Cod Sale per KG* Price Targeting 10 thousand tonnes by 2030 $7.70 per KG Growing Cost Adding Contract growers is not a current priority Processing & Economies o
Slide 23: Smoked Fish – Sales Growth and Margin
SMOKED FISH – High Fat Content with white flesh creates a luxury smoked product SALES GROWTH Production currently outsourced with in house Processing facility currently underway – completion AND MARGIN expected August 2019 Potential to process more than half current production capacity Europe smoked
Slide 24: Research and Development
RESEARCH AND DEVELOPMENT Genetic Improvement Stocking Densities • Aquna Cod targeted to be a • Recent detailed analysis and “sub species” just like Wagyu experience has increased from beef or Angus beef 2,500 to 4,000 fish per pen • Improve growth rates • Now Dynamic Stocking could • Improve fillet
Slide 25: Summary
SUMMARY Global consumption of fish is rising while wild catch is falling. Aquaculture must grow! Strong demand and premium pricing for the Aquna Cod. Eco friendly & sustainable operations supported by Government and Environmentalists. Presently high profit margin business with high barriers to entry
Slide 26: Appendix: View of Our Operations
Appendix VIEW OF OUR OPERATIONS Fish being Processed for market. Overhead view of our Bilbul Site Staff undertaking daily check on fish health and water quality. 26
Slide 27: More of a View
MORE OF A VIEW Mathew Ryan our Managing View of the cage systems we Inside our nursery. We built most Director on the ponds. manufacture. of it ourselves. 27
Slide 28: Our Operations
A view of our Pen Systems in Action Our Operations 28
Slide 29: For More Information
FOR MORE INFORMATION Ross Anderson Chairman of Murray Cod Australia Phone +61 269 625 470 Email ross@auscod.com.au Website aquna.com
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