New Zealand Coastal Seafoods Quarterly Activities Report and Collaboration Update
NZS (NZS) Share Update July 2024 Tuesday 9th
New Zealand Coastal Seafoods Reports Quarterly Activities and Collaboration Agreement
New Zealand Coastal Seafoods Limited (ASX: NZS) has released its quarterly activities report for the period ending 31 March 2024, highlighting a new collaboration agreement and providing updates on their business activities.
Instant Summary:
- Collaboration agreement with a 75-ton vessel executed.
- Receipts from customers amount to A$70,000.
- Retraction of previous revenue statements regarding the new agreement.
Operational Overview
New Zealand Coastal Seafoods Limited (ASX: NZS), a processor, distributor, and exporter of premium seafood products, has provided its quarterly activity report for the period ending 31 March 2024. The company announced a significant collaboration agreement with Nine Ocean Fishery Pty Ltd (NOF) involving a 75-ton vessel named Cody Star. This vessel, with a fuel capacity of 14 tons and a freezer capacity of 11 tons, will lease one of the company's Coral Sea fishing licenses. The target species include the large blue-spotted coral trout for export markets and snapper for domestic markets.
The Cody Star is expected to land between 20 to 50 tons of product per month, with the current market wholesale rate of the product at $10 per kilogram. However, the company retracted its previous statement of anticipated annual revenues between $1,500,000 and $3,000,000 under this agreement, citing no reasonable basis for such a disclosure. Investors are advised not to rely on the previous revenue projections when making investment decisions.
Business Activity Expenditure
In terms of business activities, the report detailed the following expenditures for the quarter:
- Product Manufacturing: A$98,000
- Administration and Corporate: A$61,000
- Leasing: A$99,000
No payments were made to directors or their associates during this period.
Future Plans
The owners of Cody Star currently plan to commission a second vessel and lease another of the company's Coral Sea fishing licenses in 2025. This expansion is expected to further bolster the company's operational capacity and market reach.
The collaboration agreement with NOF is a positive development for New Zealand Coastal Seafoods Limited, potentially increasing its product output and market penetration. However, the retraction of the previous revenue statement may cause some uncertainty among investors. The company's emphasis on sustainable fishing practices and premium product offerings remains a strong point that could attract long-term investors.
Investor Reaction:
Investor reaction has been mixed. Some are optimistic about the new collaboration and its potential to increase product output, while others are cautious due to the retraction of the previous revenue projections. Analysts suggest that the company's focus on sustainability and premium products could mitigate some of the concerns.
Conclusion:
Investors should keep an eye on New Zealand Coastal Seafoods' future updates, especially regarding the commissioning of the second vessel and the performance of the Cody Star. The company's strategic moves and adherence to sustainable practices will be crucial for maintaining investor confidence.