Related story from The Land
Tandou Limited has received a $4.8 million revenue injection following the sale of some of this year’s water allocations.
The company has sold a total 12,500 megalitres of temporary water allocations at an average price of $385/ML.
Tandou says the $4.8m, net of expenses, comes in addition to the net $4.3m of temporary water sales recorded in the 2008 year end accounts.
“The sale of these water allocations puts Tandou in a very strong cash position,” Tandou chief executive Guy Kingwill said.
“We will carefully consider new ventures this year if we identify compelling value and good fit with our business.”
The agribusiness giant has a mix of cropping, orchard and grazing properties.
Late last year it hit the news by selling 250,000ML of supplementary water entitlements for $34m to the Federal Government.
Tandou says that sale eliminated all bank debt, while allowing it to still retain 31,617ML of regulated water entitlements, recently valued at over $30m.
The company also has significant temporary water allocations remaining and it is anticipated that these, along with any further increase in allocations by the NSW Department of Water and Energy, will continue to be traded pending the continuing strength of the temporary water marke