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SHV, SELECT HARVESTS LIMITED
nipper
post Posted: Oct 1 2020, 06:12 PM
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Select Harvest is poised to announce an acquisition of $150 million worth of almond farms, according to market sources.

It is understood that the company will launch a $120m equity raising at $5.20 per share to fund the acquisition



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Dec 10 2019, 01:45 PM
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In Reply To: blacksheep's post @ Dec 1 2019, 01:56 PM

https://www.sharecafe.com.au/2019/12/04/buo...elect-harvests/
QUOTE
SHV has used strong cash flow from both its almond and food division over FY19 to pay down all debt, ex leases, and underpin growth in the future.

FY19 results were ahead of broker estimates while yields in the almond divisions were above historical industry averages, and there was of -15% reduction in production costs per kilo. Operating net profit of $53m was up 160%, including an unfavourable marking to market of the 2018 crop. Almond earnings increased 132% because of higher prices and the best crop yield for the past decade that comparably offset higher water costs.

There was no formal earnings guidance provided for FY20 but the company assesses, based on a yield of 1.35t/acre, the theoretical crop would be around 21,000t with scope for a variance either way of 10%. Bell Potter upgrades estimates for FY20 by 8% and FY21 by 18% to reflect changes to yields, costs and pricing assumptions and assumes FY20 yields are -5% below theoretical levels.

The company generated $46m in free cash flow in FY19. UBS forecasts net debt in FY20 of $600,000, signalling the company could use around $80m of its $100m in undrawn facilities for growth and retain an acceptable leverage ratio of around 1x operating earnings.

The broker also envisages potential for geographic diversification amid expansion opportunities in California. Wilsons, too, notes the potential for further investment in almond and/or macadamia productio




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
blacksheep
post Posted: Dec 1 2019, 01:56 PM
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Delivered a strong harvest result despite the drought - particularly almond crop
Overview of FY2019 Full Year Results (note - given the new financial reporting period no
financial comparatives are supplied)

QUOTE
• FY2019 NPAT of $53.0 million
• EBITDA of $95.2 million
• Operating Cashflow of $80.3 million
• 2019 almond crop of 22,690 MT (2018 crop 15,700 MT) – up 45%
• Almond price of A$8.60/kg (2018 crop A$8.05/kg) – up 7%
• Almond productivity cost per kg reduction of 15% (excluding tree depreciation)
• Net Debt (inc. finance lease liabilities)/Equity ratio at 30 September 2019 is 6.6%
• Bank debt fully re-paid - $7.9 million cash in bank
• Earnings per Share (EPS) of 55.5 cents per share
• Lost Time Injuries down 61%

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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
nipper
post Posted: May 31 2019, 11:34 AM
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QUOTE
Select Harvests has posted a $20 million first-half profit despite rising water costs amid what the almond producer called “ideal growing conditions”.

Water costs for the 2019 crop jumped 39 per cent from a year earlier due to higher prices and a lack of rain, but Select Harvests says costs per kilogram fell and crop quality was improved.

The company posted a fully franked interim dividend of 12 cents - up from five cents at the last first-half results - but a switch to a September financial year-end means prior corresponding period figures were unavailable.

- share price climbed 3.73 per cent to $6.67



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jan 22 2019, 01:14 PM
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Almond producer Select Harvest is getting bullish for the outlook for its 2019 crop after passing the major spring risk for frost damage.
QUOTE
Based on industry average yields and the age profile of the orchards, and assuming normal growing conditions for the season, Select Harvest says its 2019 theoretical crop would be approximately 17,000 million tonnes, up from 15,700 million tonnes last year.

Select Harvests says if these positive growing conditions continue for the remainder of the season, harvest will commence in mid-February.

“Subject to agricultural risks, the company is expecting to deliver yields above the industry average for the 2019 crop,” the company says.

However it points out water pricing remains a concern as dry conditions prevail and is looking to find water cost savings.
- seems to have survived the T/O chancers



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Oct 9 2017, 06:52 PM
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Posts: 7,603
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In Reply To: blacksheep's post @ Oct 9 2017, 01:59 PM

Water export to the desert, locked up in value-add?



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 

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blacksheep
post Posted: Oct 9 2017, 01:59 PM
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In Reply To: blacksheep's post @ Oct 5 2017, 08:30 PM

SP currently up 23.57% @ $5.19 on the news

QUOTE
Indicative proposal to acquire Select Harvests
On 19 September 2017 Select Harvests received a non-binding, indicative and highly conditional proposal from Mubadala Investment
Company PJSC (Mubadala) to acquire 100% of Select Harvests for $5.85 cash per Select Harvests share (Indicative Proposal). The
Indicative Proposal valued Select Harvests at approximately $430.6 million on an enterprise value basis.
Key terms of the Indicative Proposal and its underlying financial assumptions and conditions are outlined below:
1. Key Terms
a) Indicative Proposal to be executed via Select Harvests scheme of arrangement.
b) Select Harvests shareholders to receive 100% cash consideration of $5.85 per Select Harvests share.
2. Underlying Key Financial Assumptions
a) 73,606,835 fully paid ordinary shares and no dilution impact through the exercise or vesting of any outstanding options or
performance rights.
b) No material changes in Select Harvest's cash and debt balances compared with its last publicly reported position.
c) Working capital is maintained at appropriate levels.
3. Key Conditions
a) Completion of confirmatory due diligence which must be exclusively provided to Mubadala.
b) No material adverse change in Select Harvest's business, including no return of capital or dividends.
c) Negotiation and execution of a mutually acceptable implementation agreement, containing conditions (including break fees,
no stop/no talk and notification/matching rights in the event of a competing proposal and other appropriate protections for
Mubadala).
d) Unanimous recommendation from Select Harvests in favour of the Indicative Proposal.
e) Select Harvests directors and management undertaking to vote in favour of the Indicative Proposal with respect to 100% of
their share


QUOTE
Correction to ASX Announcement: ‘Select Harvests Capital Raising and Market Update’
Select Harvests Limited (ASX: SHV) wishes to advise of a correction to the announcement ‘Select
Harvests Capital Raising and Market Update’ released earlier today. With reference to slide 9, the
last sentence of the first paragraph should read: “The Indicative Proposal valued Select Harvests at
approximately $430.6 million on an equity value basis.”, rather than “The Indicative Proposal valued
Select Harvests at approximately $430.6 million on an enterprise value basis.”

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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Oct 5 2017, 08:30 PM
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Requested a TH re capital raising, but according to AFR there is also an conditional takeover proposal

Select Harvests receives takeover proposal, prepares raising

QUOTE
Street Talk can reveal the almond grower and nut products manufacturer has received a conditional takeover proposal from an entity controlled by the Abu Dhabi Investment Authority (ADIA).

It is understood the details of the approach will be revealed in a cleansing statement alongside a $40 million placement as early as Friday.


Read more: http://www.afr.com/street-talk#ixzz4uczmSCnw

QUOTE
In accordance with ASX Listing Rule 17.1, the Company states that:
(a) the request is made pending an announcement in relation to a proposed
capital raising;

(b) the Company requests the trading halt until the commencement of trading
on Monday, 9 October 2017 or earlier announcement; and

Attached Image






--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
dr_dazmo
post Posted: Aug 11 2017, 08:02 AM
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Hi All,
Saw this overnight, although it is about 4 days old.


Cheers
Dr_Dazmo

http://www.theaustralian.com.au/business/b...83ccfcb3c280eee


One million acres nut good news?Mixed news for almond fans: Bell Potter analysts tip price growth to slow, leading to downside for those with skin in the game courtesy of a 12 per cent cut to its Select Harvest target price to $4.35.

“The California bearing acreage expanded 6 per cent in FY17 to 1 million acres,” said Bell Potter analysts.

“In addition new plantings reached 108 thousand acres in FY16 reflecting ~12 per cent of the bearing acreage, the highest level reported since FY05.”

Should the current 2,200-2,300 pounds/acre crop yield in the US west-coast state hold, the analysts expect to see compound growth in Californian crop production of 4-6pc/year.

While Australia is a heavyweight almond player in the southern hemisphere, the US is number one on planet earth. That kind of supply growth spells good news for only one side of the supermarket counter: consumers.

The analysts sink their teeth into their select Select Harvest outlook accordingly:

“We have materially downgraded our NPAT forecasts by 33 per cent in FY17e, 56 per cent in FY18e and 24 per cent in FY19e. This reflects higher costs, lower USD almond price and a higher AUDUSD assumption in FY18e.”

Crunchy ...

SHV last 0.9 per cent down at $4.28





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Always remember the Golden Rule - Those with the Gold make the Rules!
 
nipper
post Posted: Aug 15 2016, 10:25 AM
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With a $500 million market valuation, Select Harvests (SHL) is the country's second-biggest almond grower behind Singapore's private Olam International.

California is in its fifth year of drought and conditions are only sporadically improving. The big dry has devastated the local industry, prompting farmers to pull their water-intensive usage.

For Select, it's been a case of surfing the tightening almond price, but then suffering a partial share wipe-out as traders built up excess inventories.Californian growers account for 80 per of the world's almond supply, which is not exactly a sliver of market share. Select plans to exploit the disruption by increasing its almond output by 46 per cent over the next eight years.

Almond demand is influenced by India, where the nut is used in curries and presented as gifts in the upcoming festival season. When the almond price peaked at $US9 a kilogram in 2015, Indians substituted for other nuts, but re-entered the market after the price fell back to $7.80kg.

Select, which reports on August 27, has guided to a $8kg average price in 2016-17 (assuming a US72c exchange rate) with volumes increasing from 13,700 tonnes to 14,000 tonnes.

Select Equities analyst and Select fan Mark Topy says the market, which is not exchange traded and has little transparency, experienced a "major disturbance''.

"We do not see the price swings as related to the long-term underlying demand and expect more typical market conditions will lead to price stability returning.''

Topy says the Californian supply constraint is ongoing, because 35 per cent of the orchards will need to be replaced because the trees have exceeded their productive life of 20 years.

Select Harvest in May reported the biggest US grower removed about 4000ha — 25 per cent of its portfolio — with a likely 14,000ha pulled across the industry. This number is expected to double next year.

Topy expects Select to report a normalised net profit of $35m, below the previous bumper $59m. Topy credits current management from reinventing the company since its alliance with the failed management investment scheme Timbercorp, which resulted in years of woe for Select.

Almonds need sandy loam and are grown here and the US (California), as well as Turkey, Morocco, Iran and Spain. While a drought plays havoc on the water-intensive trees, when things go right the producers' fortunes soar.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: abner29  
 
 


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