TANDOU LIMITED 
By
30-May-2014 Listed agribusiness and water investment company Tandou Limited (ASX:TAN) today reported an anticipated cotton yield downgrade with preliminary estimates being 15-20% below the Company's expectations immediately prior to the commencement of picking. The Company is pleased to advise broad and significant increases in the value of its water entitlement portfolio.
Cotton harvest at both Tandou Farm and the Hay operations started in early May and is now more than 50% completed. Yield estimates at this stage remain indicative but average yields across both sites are now anticipated to be approximately 8.0 bales per hectare based on gin turnout results to date and known yields from those earlier maturing fields now harvested. Fluctuating weather conditions at critical times appears to be the cause of this unexpected result. The impact of prolonged extreme heat in late summer was exacerbated by cold conditions and more than 200mm rain during the final growing period during late March and early April.
Tandou CEO, Guy Kingwill, said "this is a disappointing outcome for the Company however initial classing results indicate that the cotton quality is relatively good and we have avoided the significant colour discounts that have been experienced in other areas. Final upland cotton yields for the previous 3 seasons averaged; 10.2 bales per hectare (2013 crop), 9.8 bales per hectare (2012 crop) and 9.0 bales per hectare (2011 crop)."
"Tandou has seen strong appreciation in its substantial and diverse water portfolio in line with the broad strengthening in water entitlement markets over the past 12 months. In particular the Company has seen an unrealised gain in values of approximately 15% on its investment in water entitlements associated with the Bundygoola acquisition earlier this year" Mr Kingwill said.
The Company intends to provide an earnings guidance to the market on receipt of complete financial projections.
Enquiries:
Guy Kingwill
CEO/MANAGING DIRECTOR
Ph. 03 5018 6500
TANDOU LIMITED
ABN 81 001 014 562
About Tandou Limited:
Tandou Limited (ASX:TAN) was established in 1972 and has evolved into a modern Australian water investment and agribusiness company that owns a significant and diversified portfolio of water entitlements, along with its large scale irrigated cropping and pastoral operations. Over time Tandou has invested in water entitlements strategically held across various river systems in the Murray Darling Basin. In addition to investing in entitlements and trading water allocations Tandou combines traditional farming knowledge with the latest technological advancements throughout its enterprises to minimise risk and produce high value returns. Tandou's land holdings cover approximately 135,000 hectares near Menindee, NSW and 13,500 hectares near Hay, NSW with approximately 19,500 hectares (in total) developed for irrigation. The Company is a major producer of cotton and cereal, along with organic lamb on its pastoral operations. Its corporate office is located in Mildura, Victoria.
Cotton harvest at both Tandou Farm and the Hay operations started in early May and is now more than 50% completed. Yield estimates at this stage remain indicative but average yields across both sites are now anticipated to be approximately 8.0 bales per hectare based on gin turnout results to date and known yields from those earlier maturing fields now harvested. Fluctuating weather conditions at critical times appears to be the cause of this unexpected result. The impact of prolonged extreme heat in late summer was exacerbated by cold conditions and more than 200mm rain during the final growing period during late March and early April.
Tandou CEO, Guy Kingwill, said "this is a disappointing outcome for the Company however initial classing results indicate that the cotton quality is relatively good and we have avoided the significant colour discounts that have been experienced in other areas. Final upland cotton yields for the previous 3 seasons averaged; 10.2 bales per hectare (2013 crop), 9.8 bales per hectare (2012 crop) and 9.0 bales per hectare (2011 crop)."
"Tandou has seen strong appreciation in its substantial and diverse water portfolio in line with the broad strengthening in water entitlement markets over the past 12 months. In particular the Company has seen an unrealised gain in values of approximately 15% on its investment in water entitlements associated with the Bundygoola acquisition earlier this year" Mr Kingwill said.
The Company intends to provide an earnings guidance to the market on receipt of complete financial projections.
Enquiries:
Guy Kingwill
CEO/MANAGING DIRECTOR
Ph. 03 5018 6500
TANDOU LIMITED
ABN 81 001 014 562
About Tandou Limited:
Tandou Limited (ASX:TAN) was established in 1972 and has evolved into a modern Australian water investment and agribusiness company that owns a significant and diversified portfolio of water entitlements, along with its large scale irrigated cropping and pastoral operations. Over time Tandou has invested in water entitlements strategically held across various river systems in the Murray Darling Basin. In addition to investing in entitlements and trading water allocations Tandou combines traditional farming knowledge with the latest technological advancements throughout its enterprises to minimise risk and produce high value returns. Tandou's land holdings cover approximately 135,000 hectares near Menindee, NSW and 13,500 hectares near Hay, NSW with approximately 19,500 hectares (in total) developed for irrigation. The Company is a major producer of cotton and cereal, along with organic lamb on its pastoral operations. Its corporate office is located in Mildura, Victoria.
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