Agriterra Ltd Update (8532R)
September 17 2014 - 2:01AM
UK Regulatory
TIDMAGTA
RNS Number : 8532R
Agriterra Ltd
17 September 2014
Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector:
Agriculture
17 September 2014
Agriterra Ltd ('Agriterra' or the 'Company')
Update
Agriterra Ltd, the AIM listed pan-African agricultural group,
provides shareholders with an update on its cocoa operations in
Sierra Leone and its legacy oil interest in South Sudan.
As a result of the serious and well-publicised Ebola outbreak
and the associated precautionary restrictions on travelling in
Sierra Leone, the Company has curtailed its activities in the
region. Vehicles, warehouse facilities and other assets of the
Company's trading division are now being utilised by the
International Federation of Red Cross and Red Crescent Societies
and World Food Programme for food distribution (see link below).
This division, which was established to build a presence in the
cocoa market, has therefore been suspended. The cocoa trading was
focussed primarily on building a presence in-country and providing
a market entry point for buyers as a precursor to the establishment
of Agriterra's own plantation, and the implementation of programmes
involving the upgrading of local growers plant quality through
plant distribution. The Company is confident that ceasing trading
will not have a materially adverse effect on its financial
performance.
The on-going development of the Company's Sierra Leone
plantation has, until recently, continued during the Ebola
outbreak, however, due to the current circumstances and the
resultant restrictions in movement causing a shortage of labour,
the original planting and clearance schedule has been restricted.
The hectarage planted to date is being maintained, as is the
plantation infrastructure including warehousing, accommodation and
equipment. The state-of-the-art nursery continues to house plants
which will now be used, if circumstances allow, to accelerate the
Company's local initiatives to increase the quality of the local
growers' stock. It is envisaged that this distribution programme
will be run in tandem with international agencies and companies
looking to expand the productivity of cocoa farmers in West Africa.
The demand/supply model remains highly attractive for cocoa
producers and West Africa remains a region suitable for mass
production operations.
The Company will continue to monitor the situation locally and
will provide a further update to shareholders in its next financial
results, which are due for publication no later than 30 November
2014.
Additionally, the Company announces that it has reached a
successful settlement (receiving approximately US$5.6m in cash)
with the Republic of South Sudan and Nile Petroleum Corporation
Limited in respect of the Company's claims arising from its legacy
oil interests in South Sudan.
Phil Edmonds, Chairman of Agriterra, said, "We are giving as
much support as possible to the local community and utilising our
infrastructure and logistics capabilities to support both the Red
Cross and World Food Programme. We are maintaining a presence in
Sierra Leone and remain optimistic regarding the development of the
country's cocoa industry through the commercialisation of the
sector, the establishment of plantations and the roll out of local
planting initiatives aimed at building overall country supply and
international recognition for the provision of quality cocoa. We
are also pleased that after several years of seeking to enforce our
rights we have now reached settlement regarding our legacy oil
claims in South Sudan."
www.wfp.org/countries/sierra-leone/stories/wfp-steps-up-assistance-to-meet-urgent-food-needs-of-families-and-communities-affected-by-ebola
** ENDS **
For further information please visit www.agriterra-ltd.com or
contact:
Phil Edmonds Agriterra Ltd Tel: +44 (0) 20 7408
9200
David Foreman Cantor Fitzgerald Europe Tel: +44 (0) 20 7894
7684
Rick Thompson Cantor Fitzgerald Europe Tel: +44 (0) 20 7894
7653
John Beaumont Peat & Co. Tel: +44 (0) 20 3540
1723
Susie Geliher St Brides Media & Finance Tel: +44 (0) 20 7236
Ltd 1177
Charlotte Heap St Brides Media & Finance Tel: +44 (0) 20 7236
Ltd 1177
Notes
Agriterra Ltd is an AIM listed agricultural company with three
core divisions: beef, maize, and cocoa. Its cattle ranching
business, Mozbife, has an established breeding herd in excess of
4,800 head, a land holding of over 19,850 hectares, a 1,800 head
feedlot, and established abattoir and retail operations. In
addition to selling meat from its own herds, throughput for the
feedlot and abattoir is supplemented with cattle bought in from
local communities.
The Company's maize buying and milling operations, DECA and
Compagri, are located in Chimoio and Tete in central and
north-western Mozambique respectively. These collect maize from
circa 350,000 farmers using the Company's own vehicle fleet,
process it into maize meal, the African staple, and then sell it
back to the local market, into supermarkets and to the World Food
Programme.
Agriterra's cocoa business is centred on its 3,200 hectares of
plantation, which includes a 1.7 acre nursery, located 35km
south-east of Kenema. Its strategy is to establish itself as a
secure, sustainable and traceable source of supply to meet the
requirements of the major cocoa consumers who are placing increased
emphasis in this area.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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