Murray Cod Australia Limited · ASX:MCA
Murray Cod Australia — Investor Presentation
33 slides from Murray Cod Australia's investor presentation
Slide 1: Murray Cod Australia Ltd
ASX Code: MCA Murray Cod Australia Ltd 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: Table of Contents
TABLE OF CONTENTS A Unique Opportunity 4 Limited Competition 14 Structure 25 Differences as a Company 5 Location Advantage 15 Numbers – Share Land Based Production 6 Global Luxury Food Price History 26 Land Based Model 7 Brand 18 Global Aquaculture Smoked Fish – Production 27 AQUNA a Luxury Product
Slide 4: A Unique Opportunity – Land Based Aquaculture
A UNIQUE OPPORTUNITY – LAND BASED AQUACULTURE Climate Change, Global Population Pressure on oceans and declining wild fish stocks Global demand for protein – especially for high quality fish protein Innovation via existing local infrastructure and a rare premium native fish 4
Slide 5: Two Distinct Differences as a Listed Aquaculture Company
WE HAVE 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 5
Slide 6: Land Based Production
LAND BASED PRODUCTION Land Based Model • No bad weather issues • Very low water usage • Risk issues are usually reduces costs and • No Seals or Sharks • Fresh water does not rust limited to one pond risk considerably • Easy access on land our equipment as rapidly • Rising ocean vehicles and by foot
Slide 7: Land Based Model
LAND BASED MODEL Lower Capital • Lease model is • We operate the site • Operating costs borne Requirements ‘Capital Lite’ • We use our Pen Systems by us until fish are • Farmer builds the site and fish stock saleable – including all earthworks, 18 months approx plumbing and electrical • 15 year leas
Slide 8: Land Based Model: Environmental Risks Alleviated
Environmental Risks Alleviated LAND BASED • No waste water leaves the property MODEL • Risk of disease transfer to native populations almost non existent • Purpose built ponds are not near any native waterways • Nutrient enriched water irrigates adjoining crops or pastures • No fish can escape 8
Slide 9: Aquna Cod Is Not a Commodity, It's a Luxury Food Product
AQUNA COD IS NOT A COMMODITY IT’S A LUXURY FOOD PRODUCT W i l l t h e re f o re a l w a y s c o m m a n d h i g h e r N o c o m m e rc i a l f i s h i n g a l l o w e d m a rg i n s D o e s n o t g ro w a n y w h e re e l s e i n t h e w o r l d 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
Slide 10: What Is Aquna Cod
WHAT IS AQUNA COD • One of the world’s largest freshwater fish • Historically it was a Premium Table Fish • It has a 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 consu
Slide 11: Aquna Cod Well Suited to Aquaculture
AQUNA COD WELL SUITED TO High stocking density tolerance Tolerance for handling and grading AQUACULTURE Medium – fast growth rate (1kg in 12 month) Easy to wean to artificial diets Have relatively broad water quality requirements Efficient food conversion (1.1 to 1) Existing/latent domestic and expo
Slide 12: Other Major Farmed Species in Australia
OTHER MAJOR FARMED SPECIES IN AUSTRALIA Aquna Murray Cod – Barramundi – Salmon – Premium White Flesh White Flesh Pink Flesh Only exists in Murray Darling Basin Widely Spread throughout Widely spread around Northern of Australia - Grows nowhere else in Northern Australia and Asia Hemisphere the world
Slide 13: Barriers to Entry
BARRIERS TO ENTRY Murray Cod is globally unique to Difficulty in sourcing brood stock Limited spawning production Murray Darling River System. facilities in existence These fish grow in no other river Ideal environmental growing system in the world conditions are limited to the The region’s availabi
Slide 14: Limited Competition
LIMITED COMPETITION Market is in infancy stage It was estimated in 2018, Re-introduction of Quality and taste of Aquna with existing production aquaculture production Cod in Australia to cod is better than wild limited to small scale of Murray Cod was less raise market awareness caught fish due to p
Slide 15: Location Advantage
LOCATION ADVANTAGE Irrigation supply network of Murrumbidgee Irrigation Area (MIA) Benerembah Irrigation District Wah Wah Irrigation District Towns Mirrool Irrigation Area Yanco Irrigation Area Storages or wetland Tabbita Irrigation District Murrumbidgee Irrigation Area Irrigation supply canals Wah
Slide 16: Location Advantage
LOCATION ADVANTAGE Where is the Murrumbidgee irrigation area? 16
Slide 17: Location Advantage: MIA – Infrastructure Ready for Aquaculture
LOCATION ADVANTAGE MIA – INFRASTRUCTURE READY FOR AQUACULTURE 17
Slide 18: Global Luxury Food Brand
GLOBAL LUXURY FOOD BRAND Life Tastes Better Our Way We 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. Our premium taste Innovation always at our People will v
Slide 19: Global Luxury Food Brand: Product Lines
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 19
Slide 20: Smoked Fish – Sales Growth and Margin
SMOKED FISH – High Fat Content with white flesh creates a luxury SALES GROWTH smoked product Production outsourced now but Processing facility AND MARGIN currently underway Potential to take more than half our output Europe smoked salmon 300,000 tonnes pa US smoked salmon $350 million pa and growing
Slide 21: Product Differentiation
PRODUCT DIFFERENTIATION SAME MARKET ON SAME DAY IN MELBOURNE April 2017 Competitor’s Fish Aquna Cod RAS Produced Fish. MCA Pond Grown fish – Now Branded Aquna 21
Slide 22: MCA - Investment Proposition
MCA - INVESTMENT PROPOSITION Luxury Product: highly High Growth: Green & sustainable: sought after as a table fish Production capacity Grown in natural habitat, by consumers and chefs 40 tonnes pa in 2017 now strong synergies with over 1000 tonnes. Aiming irrigated agriculture, Price premium: Higher
Slide 23: Business Model
BUSINESS MODEL Hatchery 35mm Nursery Stock is kept in recirculated tanks with environment controlled until 100 grams in size Cages Sold to Contract Growers Fingerlings Fingerlings to sold to Contract MCA ponds In 18 Mths 1.5-2Kg Growers for for grow-out Murray Cod is grow-out est. harvested by MCA @
Slide 24: Numbers – The Basics
NUMBERS – THE BASICS Current number of fish in stock 1.5 $18.00 - $22.00 Premium Murray million per KG* Cod Sale Price Current Pond Stock is 850,000 fish Targeting 10 thousand tonnes by $7.70 per KG Growing Cost 2030 Adding Contract growers is not a Processing & priorty as quality and consistency of
Slide 25: Current Capital Structure
CURRENT CAPITAL STRUCTURE NUMBERS Deferred Current Market Cap Shares Options Consideration Shares approx. $70 million AUD on issue & Performance Rights TOTAL 392,659,015 90,350,000 41,428,571 Fully Diluted 524,437,586 25
Slide 26: Numbers - Share Price History
NUMBERS - SHARE PRICE HISTORY 26
Slide 27: Global Aquaculture Production
GLOBAL • Aquaculture 80 million tonnes 53% AQUACULTURE • Wild Catch 71 million tonnes 47% PRODUCTION • Aquna Cod 10 thousand tonnes target • Australia total Aquaculture production 97 thousand tonnes China’s entire production Alaskan Pollock Catch 67 million tonnes On a global scale Aquna cod 1.5 mil
Slide 28: Research and Development
RESEARCH AND DEVELOPMENT Genetic Improvement Energy Efficiency • Aquna Cod will be a sub species • Solar, better pumps and aerators, just like Wagyu beef or Angus beef Stock management • Improve growth rates Feed Production • Improve fillet recovery • Currently using a feed designed Stocking Densiti
Slide 29: 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 Government and Environmentalists. Presently high profit margin business with high barriers to entry. H
Slide 30: View of Our Operations
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. 30
Slide 31: More of a View
MORE OF A VIEW Mathew Ryan our Managing View of the cage systems we Inside our nursery. We built most of Director on the ponds. manufacture. it ourselves. 31
Slide 32: A View of Our Pen Systems in Action
A VIEW OF OUR PEN SYSTEMS IN ACTION 32
Slide 33: 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