Heavy rain and severe flooding in northwestern Queensland has severely impacted various properties of Australia’s leading integrated cattle and beef producer, Australian Agricultural Company Limited (ASX: AAC).
Established in 1824, Australian Agricultural Company Limited is one of the oldest operating firm in Australia. The company is an owner and operator of strategic balance of properties, feedlots, and farms with most of the properties located in South-Western Queensland and the Barkly in the Northern Territory of Australia.
In an announcement made by AAC on 11 March 2019, the company informed that 4 of its properties have been impacted by the Queensland Floods. Among the four properties, Wondoola station has been most affected. Wondoola station’s current herd of approximately 30,000 head mostly includes cows and their calves. The company’s other affected properties which include Canobie, Dalgonally and Carrum stations were having a total herd of around 50,000.
As per the recent update, the overall livestock losses were less than initial expectations in some cases with Wondoola station having a minimum estimated survival rate of 10-20% which is significantly lower than any other impacted property.
Till now, the company has not fully assessed the impact of the floods, however, it is estimated that the cost of repairing the damage will be around $6-8 Mn.
As per the company’s Managing Director and Chief Executive Officer, Hugh Killen, the company is now turning its full attention to make sure that the beef industry is having a long-term, resilient and sustainable future in the Gulf.
While providing the update of the widespread drought conditions occurring across Australia, the company informed about its properties which are located in South-Western Queensland and the Barkly in the Northern Territory, are experiencing below average rainfall for the season and extreme heat conditions. It is expected that the seasonal conditions will increase station operating expenses which will lead to higher cost of production.
In November 2018, the company released its half-year results for 1H FY19 in which the company reported revenue of $219.2 million which is 11.1% higher than the previous corresponding period (PCP).
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock is trading at a price of $0.985 with a market capitalization of ~$593.73 Million as on 11 March 2019. The counter opened the day at $0.985 and reached the day’s high of $1.020 and touched a day’s low of $0.985 with a daily volume of ~812,276. The stock has provided a year till date return of -10.45% & also posted returns of -22.13%, -14.35% & -7.08% over the past six months, three & one-months period respectively. It had a 52-week high price of $1.445 and touched 52 weeks low of $0.880, with an average volume of ~1,193,030.
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