CONFIDENTIAL - Australian Military · PDF file5.3 Start-up costs for Year 1 ... One of the Pioneers of the Wild catch Abalone Industry. ... Japanese and other growing Asian markets

John Kroezen

Operations Manager

Louth Bay Abalone Farm

Port Lincoln South Australia

ABN: [ABN]

ACN: [ACN]

CONFIDENTIAL

Louth Bay Abalone Farm

Business Plan

Prepared: 3, June, 2015

Louth Bay Abalone Farm Pty Ltd Business Plan June 2015

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Table of Contents

1. Business Plan Summary ...................................................................................... 3 1.1 The Business .......................................................................................................... 3

1.2 The Market ............................................................................................................. 4

1.3 The Future .............................................................................................................. 4

1.4 The Finances .......................................................................................................... 4

2. The Business ......................................................................................................... 5 2.1 Business details ...................................................................................................... 5

2.2 Registration details ................................................................................................. 5

2.3 Business premises .................................................................................................. 5

2.4 Organisation chart .................................................................................................. 6

2.5 Management & ownership ..................................................................................... 6

2.6 Key personnel ........................................................................................................ 7

2.7 Products/services .................................................................................................... 8

2.8 Innovation .............................................................................................................. 9

2.9 Insurance ................................................................................................................ 9

2.10 Risk management ................................................................................................... 9

2.11 Legal considerations ............................................................................................ 10

2.12 Operations ............................................................................................................ 10

2.13 Sustainability plan ................................................................................................ 11

3. The Market ......................................................................................................... 11 3.1 Market research .................................................................................................... 11

3.2 Market targets ...................................................................................................... 11

3.3 Our customers ...................................................................................................... 11

3.4 S.W.O.T. analysis ................................................................................................ 11

3.5 Our competitors.................................................................................................... 14

3.6 Advertising & sales .............................................................................................. 14

4. The Future .......................................................................................................... 15 4.1 Vision statement ................................................................................................... 15

4.2 Mission statement ................................................................................................ 15

4.3 Goals/objectives ................................................................................................... 15

4.4 Action plan ........................................................................................................... 16

5. The Finances ....................................................................................................... 16 5.1 Key objectives and financial review .................................................................... 16

5.2 Assumptions ......................................................................................................... 16

5.3 Start-up costs for Year 1 ...................................................................................... 17

5.4 Profit and loss forecast ......................................................................................... 17

5.5 Expected cash flow .............................................................................................. 17

5.6 Break even analysis ............................................................................................. 17

5.7 Simplified Explanation ....................................................................................... 17

5.8 Exit strategy ......................................................................................................... 17

6. Supporting documentation ................................................................................ 17


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1. Business Plan Summary

1.1 The Business

Business name: Louth Bay Abalone Farm Pty Ltd (Provisional).

Business structure: Private Company.

ABN: [Not yet registered.]

ACN: [Not yet registered.]

Business location: Louth Bay, South Australia.

Louth Bay is about 22 km North of Port Lincoln which is itself about 250 km to the West of

Adelaide and on the Eastern edge of the Great Australian Bight.

The farm is located on land with direct access to the waters of the Spencer Gulf which is supplied

by the pristine ocean water of the Great Australian Bight.

This area is renowned for the quality of its water, which is reflected in the high quality and variety

of both wild catch and fish farm species in the area.

Date established: [Not yet trading.]

Business owner(s): Donald Vincent Morrison, John Robert Kroezen, other shareholders.

1.1.1 Relevant owner experience:

a. Donald Morrison. One of the principals is the foremost pioneer of the South Australian

Abalone Aquaculture Industry. Donald has over 35 years experience with Abalone

Aquaculture and carried out most of the initial experiments that proved Abalone

Aquaculture would be a viable industry. Donald has provided advice and technical

assistance to every major Abalone Farm in SA; identified the major health risks and

problems associated with raising Abalone Aquaculture; and also developed the first

viable artificial food for Abalone.

b. John Kroezen. One of the Pioneers of the Wild catch Abalone Industry. He saw the

need to develop a sustainable aquaculture industry in the 1980’s and was heavily

involved with the Aquaculture research that was carried out by Kinhill Engineering,

Adelaide in relation to the breeding of abalone, particularly Greenlip Abalone. This

research led to the establishment of the first Commercial abalone venture in South

Australia and has been important in establishing several other ventures across Australia.

1.1.2 Products/services:

a. Primary. Farmed Greenlip (Haliotis Laevigata) and Blacklip (Haliotos Rubra) abalone.

These abalone are ideally in the 75 – 100 mm size range.

b. Secondary. Juvenile abalone for other abalone farms.

c. Other. Shell, culled abalone packed and marketed.

The current market growth surpasses the ability to provide product from the wild resource.

The continuing economic growth in China and the emerging middle and wealthier classes will see

this growth continue for decades.


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1.2 The Market

1.2.1 Target market. Markets in China, Japan and other Asian countries are the target market, to

overcome the shortfall in supply as demand surpasses the ability to provide sufficient product from

the wild resource.

1.2.2 Marketing strategy. Previous experience with the sale of wild product has provided Louth

Bay Abalone Farm Pty Ltd (LBAF) with the information to establish necessary contacts.

New innovative forms of product will be developed allowing LBAF to move away from the

reliance on the frozen market which in turn will give greater marketing depth and create other

opportunities for value adding.

Major points for promotion are that our farmed abalone will come from clean unpolluted water and

is environmentally sustainable.

1.3 The Future

1.3.1 Vision statement. To develop a best practice Abalone Farm that has minimal environmental

impact and is carbon neutral, that will produce and market 100 tonne (whole weight) of Abalone

within 4 years, and then be further developed to produce 150 tonne within 6 years.

1.3.2 Goals/objectives. This will be accomplished in three phases:

a. Phase one. Recondition of the existing infrastructure to get the farm operating.

(1) Stage 1. Overall clean up of the site and removal of obsolete plant. Time Frame:

Year 1, Month 0-2.

(2) Stage 2. Repair and maintain pumps, pipe lines and all other plant and equipment.

Time Frame: Year 1, Month 2-6.

b. Phase two. Develop infrastructure required to produce 100 tonne (whole weight) per

annum. Time Frame: 0 - 3 years.

(1) Stage 1. Establish a laboratory and settlement facility. Time Frame: Year 1,

Month 3-6.

(2) Stage 2. Develop slab farm sufficient to produce 100 tonne (whole weight) per

annum. Time Frame: Year 1, Month 6-12.

c. Phase three. Add the additional capacity to raise production to 150 tonne. Time frame:

Year 4.

1.4 The Finances

Initial Investment required is $8m. The required capital will be raised from private shareholders

who will be offered a 2/3 share of the project.

The Principals will be introducing as their share, the existing Abalone Farm, including all the plant,

equipment and permits that would cost at least $6m to replace.

The farm is expected to generate approximately $2.9m of cash flow in year three. A portion of this

will be necessary to complete Phase 3, the balance to be dealt with at the boards discretion.

Phase three will lift the potential annual gross profit to $5m per annum.


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2. The Business

2.1 Business details

2.1.1 Products/services: An aquaculture venture to grow and market young, gourmet abalone to

Chinese, Japanese and other growing Asian markets.

A market that is not possible to be supplied by product from the wild due to size limits and the fact

that the wild resource is already exploited to its maximum.

2.2 Registration details

2.2.1 Business name: Louth Bay Abalone Farm Pty Ltd (Provisional).

2.2.2 Trading name: Louth Bay Abalone Farm (Provisional).

2.2.3 Date registered: [Not yet registered.]

2.2.4 Location(s) registered: South Australia.

2.2.5 Business structure: Private Company.

2.2.6 ABN: [Not yet registered.]

2.2.7 ACN: [Not yet registered.]

2.2.8 GST: [Not yet registered.]

2.2.9 Domain names: [Not yet registered.]

Copies of these documents are contained at annex A.

2.2.10 Licences & permits:

a. Primary Industries and Regions SA (PIRSA) Aquaculture: Land based license.

b. Primary Industries and Regions SA (PIRSA) Fisheries: Brood stock Licence.

c. Environmental Protection Agency: Pipeline Licence.

Copies of these documents are contained at annex B.

2.3 Business premises

2.3.1 Business location. Part Section 140 Lot 4 Hundred of Louth, Louth Bay South Australia. The

Farm site is 22 Kms North of Port Lincoln on the Lincoln Highway. No. 1976 Lincoln Highway.

2.3.2 Buy/lease. The site is leased from DV Morrison. There is an option to purchase the property

at the 10 year mark. LBAF owns all of the capital improvements.

A copy of these documents is contained at annex C.


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2.4 Organisation chart

2.5 Management & ownership

2.5.1 Names of owners:

a. Donald Morrison,

b. John Kroezen, and

c. Various Shareholders.

2.5.2 Details of management & ownership. The Principals operating the business will be:

a. Donald Morrison. Will have the critical role of Hatchery Manager and will have direct

responsibility of developing the Hatchery, Farm operations and running the Laboratory

to produce the juvenile abalone necessary for the farms operation.

b. John Kroezen. Will manage all other processes in support of the Hatchery Manager.

He will supervise the Administrative staff and develop the required processing facilities

and also develop the necessary markets for the end products.

c. Various shareholders. Will own 2/3 of the Company.

d. Board of management. A professionally run board with up to seven board members

will provide the necessary corporate guidance. An Independent Chairman with good

business acumen is desirable. Other independent board members will depend on the

skill set required by the board. The board will maintain an open line of communication

to share holders so that they are always kept informed.

2.5.3 Experience. Donald Morrison and John Kroezen have both owned and operated successful

wild catch abalone businesses for more than 20 years.

Donald Morrison has a passion for the Abalone Industry. He pioneered Abalone Aquaculture in

South Australia which started with his initial trials in 1979 which progressed to establishing the first

Abalone aquaculture venture in South Australia. In 2002, he stepped out of this business citing

personal reasons and preferred to act as a consultant to other developing Abalone Farms. During his

time he made the first successful artificial spawning of Abalone in South Australia. He also

developed and manufactured the first viable artificial abalone food in Australia. He has established

the most efficient methods of spawning and settling Abalone in Australia and has identified and

found solutions for most of the diseases and problems that Abalone Farms are liable to encounter.

Board of Directors

Mr Donald Morrison

Hatchery Manager

Hatchery development

Husbandry

Mr John Kroezen

Operations Manager

Production/

Processing

Receptionist/

Bookkeeper Sales Workforce

Figure 1: Organisation Chart.


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John Kroezen also has a passion for the Industry. He was a Managing Director of the first Wild

Catch Processing Factory which was owned and operated by members of the Abalone Industry.

Whilst in that position he was also responsible for the development of the market and sales. He was

very deeply involved in the development of one of the first Abalone Aquaculture ventures that

followed Donald Morrisons pioneering work. He was also involved with Donald’s previous venture

and at times provided Donald with hands on assistance.

Both are mature stable adults capable of building a best practice Abalone Farm through strong

leadership and supervision of the required staff.

2.6 Key personnel

2.6.1 Current staff

Job Title Name Skills or strengths

Hatchery

Manager

Mr Donald Morrison 40 years experience in the wild catch fishery and

aquaculture. He is the foremost pioneer of the South

Australian Abalone Aquaculture Industry.

Operations

Manager

Mr John Kroezen 40 years experience in the wild catch fishery, processing,

marketing, management and a pioneer in abalone

aquaculture.

2.6.2 Required staff

Job Title Qty Expected

staff turnover

Skills necessary Date

required

Office

Manager

1 4-5 years Relevant qualifications in Office

Management. At least 2 years experience.

July 2015

Leading

Hand

1 4-5 years Previous experience in an Aquaculture

venture desirable. Able to train any

person with potential.

July 2015

Hatchery

Staff

10 1-4 years Previous experience in an Aquaculture

venture desirable. Able to train any

person with potential

July 2015

2.6.3 Recruitment options. Advertising in the local paper, online advertising and labour hire firms.

2.6.4 Training programs. Where staff are required by law to have qualifications to operate

equipment, appropriate training will be provided by external providers.

2.6.5 Skill retention strategies:

a. An annual bonus and share issue to staff will be implemented.

b. Key staff members will be identified and where necessary will be provided with

additional training to assist them with their role.

c. Casual staff showing potential will be given an opportunity to become permanent staff.


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d. All staff will be subject to an Annual Review of their skills and performance with the

intention of providing them with the skills they need to perform their tasks.

e. Management will actively seek input from staff members on ways of improving

processes.

Details of how these strategies will be achieved are contained at annex D.

2.6.6 Unique Strategies. One of the weaknesses identified for this venture is the acquisition and

retention of a work force. This will become more competitive if the projected Mining ventures in

the local area come to fruition.

To overcome this weakness and to tap in to an unused work force LBAF plans to offer part time

positions to women who have family commitments and the desire to return to work but are unable

to find normal positions and the necessary flexibility nor the opportunity to do so. LBAF will offer

part time positions to female staff of about 25 hrs a week.

This concept will enable the staff the flexibility to drop their children off at school, and then be

available to pick them up at the end of the day whilst working in between.

2.6.7 Succession Planning. Don Morrison has indicated that he does not wish to have an active

role in the Company once it has reached the 100 tonne production mark. To ensure the

uninterrupted production we have a person with many years of involvement in Abalone Farming

who will be taken on as an assistant for Don and who will understudy his methods.

A similar experienced person will be taken on to assist John Kroezen in his position.

2.7 Products/services

Product/Service Description Price

Abalone Young, gourmet abalone that will include:

- Fresh,

- Frozen, and

- Canned.

Market price

Immature Abalone Excess abalone from stock optimisation.

Abalone produced for other farms.

Market price

Shell When found necessary to remove the meat

from the shell as part of any process the shell

will be sold to the furniture and jewellery

trade.

Market price

2.7.1 Market position. The abalone products produced will cater towards the high end of the

market. The rapidly expanding middle and wealthier classes within China, Japan and other Asian

markets is providing the opportunity for more people than ever before to try a traditional food that

has historically proven very difficult to obtain due to high demand and shortage of supply. In China

in particular, abalone is traditionally considered to be a high end product, which demonstrates that

the consumer is a very wealthy and successful person.


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2.7.2 Unique selling position. LBAF will be researching new innovative processing and packaging

methods to value add to the product in order to get maximum return for the investors. LBAF intends

to be seen as innovators; however, the main strength to our marketing strategy will be quality.

2.7.3 Anticipated demand. Total annual production.

2.7.4 Pricing strategy. Market price but led by new and innovative production ideas.

2.7.5 Value to customer. High quality luxury product that fits well into the Asian Success Culture!

2.7.6 Growth potential. The growing middle class in China will see an increase in demand for the

product in the foreseeable future.

2.8 Innovation

2.8.1 Research & development (R&D)/innovation activities. Continual R&D will be undertaken

to develop new processes and value adding. 5% of the annual budget will be directed towards this.

2.8.2 Intellectual property strategy. Intellectual property will be protected by patenting any new

processes developed.

2.9 Insurance

2.9.1 Workers compensation. This will be provided through Workcover. The associated cost for

this is detailed in the cost analysis spreadsheet at annex E.

2.9.2 Public liability insurance. Various quotes were sought for Public liability insurance and an

allowance has been made in the cost analysis spreadsheet at annex E.

2.9.3 Professional indemnity. Various quotes were sought for Professional indemnity and an

allowance has been made in the cost analysis spreadsheet at annex E.

2.9.4 Product liability. Various quotes were sought for Product liability and an allowance has been

made in the cost analysis spreadsheet at annex E.

2.9.5 Business assets. Various quotes were sought for Business assets and an allowance has been

made in the cost analysis spreadsheet at annex E.

2.9.6 Business revenue. Projections have been made for Business revenue and have been included

in the cost analysis spreadsheet at annex E.

2.10 Risk management

Risk Likelihood Impact Strategy

Strong Australian

Dollar

Highly Likely Medium Careful management of all processes to get

the most efficient use of capital.

Development of new products to value add

Disease Low High Being aware of all current pathogens, the

preventative steps will always be in place.

Weather Medium High Being aware of the current weather

patterns and the possible effects will allow

preventative steps to be built in to the

system.


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2.11 Legal considerations

Primary Industries and Regions SA (PIRSA) Aquaculture: Land based licensing.

Primary Industries and Regions SA (PIRSA) Fisheries: Brood stock Licence.

Environmental Protection Agency: Pipeline Licence.

2.12 Operations

2.12.1 Production process. To grow abalone from brood stock through settlement to a marketable

size. All necessary steps will take place in the Hatchery, the Nursery and on the Grow Out Slabs.

2.12.2 Suppliers. The only Raw product required is Brood Stock which will be obtained from

Licensed Divers in the Wild Catch Fishery.

2.12.3 Plant and equipment. A list of the Plant and equipment required is detailed at annex F. The

associated costs for this equipment have been included in the cost analysis spreadsheet at annex E.

2.12.4 Workplace Safety. All work practices will be compliant with the current Workplace Safety

requirements.

A set of Workplace policies and procedures will be available for staff visibly located in the work

place.

Staff will be fully informed of their duties during orientation and appropriate training will take

place both then and when new procedures or equipment is introduced.

2.12.5 Technology (Software). LBAF has identified the need for a dedicated web site with secure

access for Share Holders. The shareholder information provided on the restricted area of the web

site will be updated regularly and will allow shareholders access to timely, up to date information

about the progress of the farm.

The following additional Software will also be required:

a Accounting,

b Stock Control, and

c CCTV and remote monitoring will be a feature of the Farm Management.

2.12.6 Trading hours. Customers will be able to contact Sales staff by email, web site enquiry and

telephone. Response time to enquiries will be within 24 hours.

2.12.7 Communication channels. Customers will be able to contact Sales staff by email, web site

enquiry and telephone. Response time to enquiries will be within 24 hours.

2.12.8 Payment types accepted. Electronic Funds Transfer. Escrow where appropriate.

2.12.9 Credit policy. None. Electronic Funds Transfer prior to despatch of product.

2.12.10 Quality control. All production will comply with Department of Primary Industry Export

requirements. Staff will constantly monitor all production. A cooperative environment will be

encouraged where all staff members are able to contribute to the improvement of procedures and to

identify problems.

2.13 Memberships and affiliations. The business will be affiliated with all necessary

organisations.


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2.14 Sustainability plan

2.13.1 Environmental/resource impacts. A core belief of the business is not only sustainability

but also one of which has minimal environmental impact. All steps will be taken to use the

maximum amount of Green energy possible and a zero carbon footprint target has been set.

The use of filtration and purification equipment (see 3.4.4) will guarantee the water quality and

remove the risk of all known pathogens without needing to resort to chemical treatment. Settling

ponds will remove any solids flushed from the slabs before the water is returned to the ocean.

2.13.2 Community impact and engagement. There are no adverse impacts on the local

community that LBAF are aware of. The lines of communication will always be open if anyone has

concerns and as a business will always be answerable for our actions.

2.13.3 Risks/constraints. We see no risks from our environmental impact policy, on the contrary

we see it as being a benefit not only to the local community and ourselves but will enhance our

reputation in the marketplace.

2.13.4 Strategies. LBAF will introduce an Environmental management system to minimise and

mitigate any environmental impact. An environmental audit will be a part of this. It is important that

the marketplace has confidence in the ability of LBAF to produce high quality produce from a clean

and sustainable environment.

3. The Market

3.1 Market research

Both principal members have over 80 years combined experience within the Abalone Industry (wild

catch), Abalone sales and Abalone Aquaculture.

To determine the current and projected demand for abalone we have had discussions with several

processors and marketing groups. The reception has been positive and a range of options has been

offered. We have been given current price levels and an assurance that all of our production will be

readily saleable. Copies of correspondence are at annex G.

3.2 Market targets

The planned target for Phase two is 100 tonnes (whole weight) per annum. This product will be

harvested as it reaches the required size. Whilst product will be marketed all year round, much of

the marketing effort will be concentrated on the Chinese New Year when demand is very high.

3.3 Our customers

3.3.1 Customer demographics. The major customer group will be the expanding Asian middle

and wealthier classes. Abalone has a high Social status in most Asian countries, particularly China

and Japan.

3.3.2 Customer management. We expect to highly satisfy and retain established customers by

always providing a high quality product which is delivered on time. This success will then see a

growth in our client base as others become eager to be brought on board.


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3.4 S.W.O.T. analysis

Strengths Weaknesses

Commitment

Experience

Workforce

Inadequate capitalisation

Poor Perception

Opportunities Threats

Food

Processing

Disease

Currency fluctuations

3.4.1 Strengths

a. Commitment. Both of the Principals have had a long involvement with the Abalone

Aquaculture Industry and were pioneers, each in their own way. They both share a

strong commitment and belief in the future of the industry.

Donald Morrison. Donald has 40 years experience with Abalone Aquaculture and

carried out most of the initial experiments that proved Abalone Aquaculture would be a

viable industry. Donald has provided advice and technical assistance to every major

Abalone Farm in SA; identified the major health risks and problems associated with

Abalone Aquaculture; and also developed the first viable artificial food for Abalone.

Donald is passionate about Abalone Aquaculture.

John Kroezen. One of the Pioneers of the Wild Catch Abalone Industry. He saw the

need to develop a sustainable aquaculture industry in the 1980’s and was heavily

involved with the Aquaculture research that was carried out by Kinhill Engineering,

Adelaide in relation to the breeding of abalone, particularly Greenlip Abalone. This

research led to the establishment of the first Commercial abalone venture in South

Australia and has been important in establishing several other ventures across Australia.

b. Experience. Both of the Principals have been involved in previous Abalone Farm

ventures and have a strong knowledge base of what works and what does not work. As

such they are in a position to ensure that all known pitfalls can be avoided.

3.4.2 Weaknesses:

a. Workforce. Sourcing and maintaining a workforce has been identified as a potential

problem. If mining takes off in the local area like it is expected to, this will see a labour

drain. LBAF will work with all agencies to attract a variety of skilled and semi skilled

employees.

The Principals are looking at innovative ways of filling this void. Once the farm is

established very few jobs will require physical strength. For those that do adequate

machinery will be available. This means that a female workforce is viable.

The Principals believe that there are many women in the area who have started a family

and who would like to return to the work force but cannot find a flexible job enabling


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them to work around family commitments. Allowance has been made for some of these

staff to work on a Casual basis if they so prefer.

If adequate full time staff cannot be found, part time positions will be created to enable

otherwise home bound woman to drop their children off at school, proceed to work and

return in time to pick up their children when school is over.

Other financial incentives such as bonuses and share issues will be available to staff.

b. Inadequate capitalisation. Both of the Principals have observed with disappointment

as many of the previous Abalone ventures have foundered.

All of these ventures shared a similar problem. They have all been undercapitalised.

This meant that a continual demand was placed on shareholders to supply more and

more funding which resulted in their increasing dissatisfaction and has subsequently

seen the ventures founder.

The concept behind LBAF is that it will be fully capitalised right from the very

beginning to fully fund all of the necessary repairs, renovations, upgrades, new

initiatives and operating costs for the first three years enabling a portion of the cash

flow generated in year three to complete Phase 3. The principals believe that they have

factored in all known variables; meaning there will be no bad surprises for shareholders

as the farm is developed.

The principals have taken a very conservative approach. Whilst they have factored in

being able to grow Abalone from the first year, which will be marketable by the third

year, the business will not be reliant on the cash flow so generated.

By the third year the farm will be well on the way to producing 100 tonne shell weight

of Abalone a year and will be self sufficient from then on.

c. Poor perception. As a result of past failures in this industry there is a perception that

Abalone Farming is a high risk investment.

The principals have closely examined the previous ventures that have not done well and

have identified the following:

(a) The primary reason for failures has been inadequate capitalisation. This has

been identified and addressed in the previous paragraph 3.4.2.b.

(b) Additional failures resulted from the consequences of trying new unproven

techniques and technologies before fully understanding the associated

problems prior to their implementation. This resulted in the ventures having

to continue to utilise high cost systems that adversely affected their

economic viability.

All industries rely on innovation to further improve and advance their operations. The

Abalone farming industry has a record of innovation which has made positive

contributions towards advancing productivity and profitability. The principals in LBAF

have the experience to assess the aspects of all available technologies. As a result they

have chosen a mix of proven technologies and new innovations. In order to deal with

the specific known weaknesses within the Abalone farming industry, new innovations

have been very carefully selected and then assessed for their cost effectiveness so that

the project will not be trapped in using highly expensive procedures.


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LBAF believes that the success of this project will result in an overall reassessment of

how people perceive the Abalone farming industry.

3.4.3 Opportunities.

a. Food. The artificial food made to supply the abalone farms has some deficiencies.

Donald has carried out a lot of research into artificial food. Much of the artificial food

currently in use is based on work originally carried out by Donald. As such he is in an

excellent position to be able to identify the shortcomings.

LBAF is confident that the current food can be improved which will make the food last

longer and give a superior growth rate and a better growth to cost ratio. This is

something LBAF would like to explore once the farm is established and running

properly.

b. Processing. Processing options is something LBAF would like to explore once the farm

is established and running properly.

3.4.4 Threats:

a. Disease. The principals are very aware of the threat of the various diseases that Abalone

Farms have been victim of to date. They have a lot of experience dealing with the local

pathogens.

There are three pathogens that affect Abalone.

(a) Perkinsus olsenii (parasite) which has only ever effected wild stock.

(b) Vibrio sp. (bacteria) which are endemic to the local waters but is seasonal and

has been successfully treated with antibiotics previously.

(c) Abalone Viral Ganglioneuritis (virus) which to date has only effected abalone in

Victoria and Tasmania.

Our main concern is Vibrio sp. which is at the worst in warm weather when combined

with high turbidity. Research and observation by Donald Morrison has shown that it is a

water quality issue and Vibrio sp. can be defeated by filtration of the water to remove

all the particles, leaving nothing to transport it. Not only do we intend to install a

filtration system to remove the particles but we will carry it to the next stage by

installing an Ultraviolet steriliser which will remove any pathogens that are free in the

water column. This will put us ahead of all other farms in Australia with water quality

and disease control.

b. Currency fluctuations. A strong Australian dollar depresses the price obtainable on the

export market.

All of our market estimates and returns were calculated when the dollar was much

higher. As the dollar falls it will increase the profitability of the venture.

3.5 Our competitors

LBAF intends to develop its own unique brand name based on quality, reliability and service. To

add to its strengths, LBAF will also look to developing strategic alliances in the various market

places.

3.6 Advertising & sales


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3.6.1 Advertising and promotional strategy. Abalone buyers already known to the Principals

have been contacted and advised of the pending production. Potential markets will be contacted to

discuss specific requirements so that these can be factored in for production.

Sales are not expected within the first two years.

By the time LBAF has product for sale, personal contacts and Internet presence will have all

potential markets aware of the products.

Whilst we will not abandon the option of processing and marketing our own product, we have

determined that it will be extremely beneficial to forge partnerships with local processors who

specialise in Abalone processing and marketing. We will keep all of our options open to enable

maximum flexibility with marketing.

3.6.2 Sales and marketing objectives. Sales will be the responsibility of the Operations Manager.

Assistance will be sought where necessary from Austrade to target niche markets. Previous

experience in this area gives LBAF an advantage.

3.6.3 Unique selling position. Most of the other ventures seem to be just supplying the traditional

markets. Whilst we will avail ourselves of these where necessary, the product will be directed

towards niche markets where value adding can be realised.

3.6.4 Sales and distribution channels. LBAF will be actively seeking strategic alliances in the

various market places.

LBAF will utilise the services of Austrade and other Government Agencies for market information

and will be prepared to participate in Seafood displays and Trade Missions where appropriate for

abalone.

An up to date Internet presence will be maintained to allow potential customers a contact point.

4. The Future

4.1 Vision statement

To develop an environmentally friendly Abalone Aquaculture Farm utilising all of the best Industry

Practices available. To become a leader in innovation and value adding. To maximise the returns for

the shareholders. To provide a happy, respectful work environment for the benefit of the staff and

the company. To be a good corporate citizen.

4.2 Mission statement

To build a strong team environment that will enable LBAF to become an Industry Leader in

Abalone Aquaculture.

4.3 Goals/objectives:

a. Return the farm to a point where spawning can be commenced.

b. Develop the farm to cater for 100 tonne production by the end of the third year of

operation.

c. Further develop the farm to cater for 150 tonne production by the fourth year of

operation.


Page 16

d. To make this farm the centrepiece of a network that will include other farms and the

potential to add other services such as processing facilities and artificial food

production.

4.4 Action plan

Please note: This table does not include sustainability milestones as they are listed in the

sustainability section above.

Milestone Completion Person responsible

Renovation of Hatchery August 2015 Hatchery Manager

Construction of Laboratory August 2015 Operations Manager / Hatchery Manager

First Spawning October 2015 Hatchery Manager

100 Tonne PA production February 2019 Operations Manager / Hatchery Manager

150 Tonne PA production February 2021 Operations Manager / Hatchery Manager

5. The Finances

5.1 Key objectives and financial review

5.1.1 Financial objectives:

a. To have saleable product within three years,

b. To have 100 Tonne production by the end of the fourth year, and

c. To have 150 Tonne production within six years.

5.1.2 Finance required. $8m raised from private shareholders. This will provide the capital

necessary to meet the major capital expenditure of around $2m which will be to replace the tank

area with slabs. This will also include a state of the art filtration and sterilisation system to treat all

of the incoming sea water.

The majority of the $8m will meet wages and operating costs over the initial 3 year period.

The Principals will be introducing as their share, the existing Abalone Farm, including all the Plant

and Equipment as shown in Annex F. This would cost at least $6m to replace and will speed up

production by at least 36 months.

The funds necessary to complete the final stage of the farm will come from the cash flow generated

in year three with the balance going to the shareholders as an early dividend.

Already having the necessary permits means that this project will not be subject to expensive time

wasting delays that in themselves represent additional savings of several million dollars both in

outlay and time lost from production.

5.2 Assumptions

The financial tables on the subsequent pages are based on the assumptions listed below:


Page 17

5.3 Start-up costs for Year One

The forecast is that the start-up costs for year one will be $5m.

Details of the breakdown for the associated costs are contained in the cost analysis spreadsheet at

annex E.

5.4 Profit and loss forecast. Details of the Profit and loss forecast are at annex H.

5.5 Expected cash flow. Details of the Expected cash flow are at annex I.

5.6 Break-even analysis. Details of the Break-even analysis are at annex J.

5.7 Simplified explanation. At year 4 we believe that the Company will have a value of $24m.

The investors will own 66.66% of the company. Their equity will be $16m.

From year 5 when the last stage is in production the annual profit before tax is projected to be $5m.

At a Company tax rate of 30%, this leaves $3.5m. This represents a fully franked annual return of

29% on the original investment. The company should also have a value of $35m by then; the

investors will own 66.66% of the company. Their equity will be a little over $23m.

5.8 Exit strategy. If at any time, the shareholder is fully paid up, or not in default of a call, they

will first have to offer their shares to the other shareholders. If none of the shareholders take up the

shares they will be free to offer them outside the company.

If the shareholder is not fully paid up and fails to meet a call on the shares, the shares will be forfeit.

This will be subject to the agreement drawn up at the time of the share issue.

6. Supporting documentation

The attached supporting documentation in relation to this business plan includes the following

annexes:

A. Business details

B. 2.2.10 Licences and permits

C. 2.3.2 Lease and option to purchase

D. 2.6.5 Skill retention strategies

E. Cost analysis spreadsheet. This spreadsheet shows the projected operating and income figures

for 5 years. This analysis was calculated on the basis that the board will approve the next

stage of the project in year four and expand the farm to produce 150 tonnes per annum.

F. 2.12.3 Plant and equipment

G. 3.1 Market research

H. 5.4 Profit and loss forecast

I. 5.5 Expected cash flow

J. 5.6 Break even analysis

K. Market information

ANNEX A TO

LOUTH BAY ABALONE FARM BUSINESS PLAN

JUNE 2015

Registration details

2.2.10 Business name: Louth Bay Abalone Farm Pty Ltd (Provisional).

2.2.11 Trading name: Louth Bay Abalone Farm (Provisional).

2.2.12 Date registered: [Not yet registered.]

2.2.13 Location(s) registered: South Australia.

2.2.14 Business structure: Private Company.

2.2.15 ABN: [Not yet registered.]

2.2.16 ACN: [Not yet registered.]

2.2.17 GST: [Not yet registered.]

2.2.18 Domain names: [Not yet registered.]

All of these registrations will occur immediately the initial investment is made.

ANNEX B TO


JUNE 2015

2.2.10 Licences and Permits

These are just some of the necessary licences and permits being held. We are waiting for the current

paperwork to reach us from the Department. These permits will be transferred to LBAF prior to

commencement of operations.

B – 2

B – 3

B – 4

B – 5

ANNEX C TO


JUNE 2015

2.3.2 Lease and option to purchase

This annex will contain copies of the lease and the option to purchase.

These documents will be prepared once the initial finance becomes available.

C – 2

ANNEX D TO


JUNE 2015

2.6.5 Skill Retention Strategies

The following strategies will be utilised to assist LBAF in Skill Retention:








processes.

These strategies will be applied as follows:


Full time staff will be paid an annual bonus equivalent to one weeks wage paid on a pro rata basis at

Christmas.

For the initial three years which will be the hardest establishment years, full time staff will be

allotted shares in the Farm equivalent to 10% of their annual income. This will take place at the end

of each financial year. These staff members will also be able to purchase additional shares up to the

value of the issued shares at this time.

The shares for this exercise will come from the shareholdings of the principals and will not affect

the other shareholders.

This is designed to give the staff a feeling of belonging to the farm and will hopefully see them

contribute positively to all facets of farm management.



Training courses will be made available to staff members where they show potential. These will

include but not be confined to such things as First Aid, Plant Operation and Aquaculture Training.


During the first year it is anticipated that the majority of the work force will be casual. When a

casual staff member with good potential is identified, where possible, that person will be given the

opportunity to become a full time staff member.

D – 2



This is designed to create a happy work environment. Regular meetings with the staff members will

show them that management is interested in them and their opinions and that they are a valuable

part of the team.

Where staff members are found to be deficient, this strategy is designed to help identify any

weakness early so that additional training can be provided to that staff member.


processes.

There will be regular meetings with staff members, both communally and privately to give all staff

members an opportunity to present any ideas that they believe will improve procedures on the farm

or to advise management of any potential problems that they see.

All staff will be encouraged to report any safety issues that they are aware of immediately or any

safety breaches. A Policy and Procedures Manual will detail these procedures and copies will be

readily available to staff.

ANNEX E TO


JUNE 2015

CASH FLOW FORECAST

BUSINESS: Abalone Farm

3-Jun-15

CASH FLOW PERIOD: Year 1

2015/16

TOTAL July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June

INCOME:

Abalone

Other

TOTAL INCOME: $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

EXPENSES:

Accounting

Accounting Support $60,000.00 $60,000.00

Busines Plan $75,000.00 $75,000.00

Legal Costs $100,000.00 $100,000.00

Administration

Accounting Softw are $500.00 $500.00

Cameras $5,000.00 $5,000.00

Directors Fees (7) $30,000.00 $7,500.00 $7,500.00 $7,500.00 $7,500.00

Furniture $21,000.00 $21,000.00

MFC Colour Laser Printer $1,500.00 $1,500.00

Off ice Supplies $3,500.00 $1,750.00 $175.00 $175.00 $175.00 $175.00 $175.00 $175.00 $175.00 $175.00 $175.00 $175.00

Payroll Management

Setting Up $500.00 $500.00

Ongoing $3,000.00 $250.00 $250.00 $250.00 $250.00 $250.00 $250.00 $250.00 $250.00 $250.00 $250.00 $250.00 $250.00

Postage $2,000.00 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67

Reports (quarterly) $1,500.00 $375.00 $375.00 $375.00 $375.00

Shredder $350.00 $350.00

Stationery items $1,000.00 $1,000.00

Advertising $1,000.00 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33

Bank Charges $1,000.00 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33

Computer

Hardw are $5,500.00 $5,500.00

Softw are $5,000.00 $5,000.00

Consulting

Spaw ning/Husbandry $52,000.00 $52,000.00

Construction $117,000.00 $9,750.00 $9,750.00 $9,750.00 $9,750.00 $9,750.00 $9,750.00 $9,750.00 $9,750.00 $9,750.00 $9,750.00 $9,750.00 $9,750.00

Contingency $42,250.00 $3,520.83 $3,520.83 $3,520.83 $3,520.83 $3,520.83 $3,520.83 $3,520.83 $3,520.83 $3,520.83 $3,520.83 $3,520.83 $3,520.83

Electricity $50,000.00 $4,166.67 $4,166.67 $4,166.67 $4,166.67 $4,166.67 $4,166.67 $4,166.67 $4,166.67 $4,166.67 $4,166.67 $4,166.67 $4,166.67

Fuels $5,000.00 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67

Hatchery

Aquire existing infrastructure $500,000.00 $500,000.00

Brood Stock Conditioning $50,000.00 $16,666.67 $16,666.67 $16,666.67

Broodstock collection $5,000.00 $5,000.00

CCTV $10,000.00 $10,000.00

Grow out

Food $20,000.00 $3,333.33 $3,333.33 $3,333.33 $3,333.33 $3,333.33 $3,333.33

Horticultural Sheds $675,000.00 $225,000.00 $225,000.00 $225,000.00

Slabs & Gutters $102,000.00 $34,000.00 $34,000.00 $34,000.00

Tippers $250,000.00 $83,333.33 $83,333.33 $83,333.33

E – 2

Laboratory

Building $150,000.00 $50,000.00 $50,000.00 $50,000.00

Fit out $250,000.00 $83,333.33 $83,333.33 $83,333.33

Locksmith (restricted key system) $5,000.00 $5,000.00

Maintenance on Buildings $10,000.00 $3,333.33 $3,333.33 $3,333.33

Medication $1,500.00 $1,500.00

Monitoring Hardw are $10,000.00 $10,000.00

Monitoring Softw are $10,000.00 $10,000.00

Pipeline

Diving Services $5,000.00 $5,000.00

Pigging Pipes $20,000.00 $6,666.67 $6,666.67 $6,666.67

Pipeline Maintenance $50,000.00 $16,666.67 $16,666.67 $16,666.67

Screens $15,000.00 $5,000.00 $5,000.00 $5,000.00

Pumps restore

Rebuild/Replace $40,000.00 $13,333.33 $13,333.33 $13,333.33

Racew ays & drains $15,000.00 $5,000.00 $5,000.00 $5,000.00

Replace valves $5,000.00 $1,666.67 $1,666.67 $1,666.67

Sundry Items $10,000.00 $3,333.33 $3,333.33 $3,333.33

Vacuum Pumps $8,000.00 $8,000.00

Safety Clothing $20,000.00 $20,000.00

Roadw orks $15,000.00 $5,000.00 $5,000.00 $5,000.00

Security Fence $5,000.00 $1,666.67 $1,666.67 $1,666.67

Settlement Tanks $35,000.00 $11,666.67 $11,666.67 $11,666.67

Site Maintenance $150,000.00 $50,000.00 $50,000.00 $50,000.00

Stock $100,000.00 $100,000.00

Water Filtration System

Oxygen Diffusion Equipment $60,000.00 $60,000.00

Self Cleaning Centrifugal Filters $75,000.00 $75,000.00

Self Cleaning Filters $70,000.00 $70,000.00

Ultra Violet Steriliser $200,000.00 $200,000.00

Workshop

Building $25,000.00 $8,333.33 $8,333.33 $8,333.33

Tools $35,000.00 $11,666.67 $11,666.67 $11,666.67

Insurance $100,000.00 $100,000.00

Leasing Property $52,000.00 $52,000.00

Licences (Farm)

Brood Stock Licence $500.00 $500.00

Crow n Land Licence $160.00 $160.00

Farm Licence $2,680.00 $2,680.00

Pipeline License $500.00 $500.00

Restricted Fish Processor $170.00 $170.00

Seabed for Aquaculture $220.00 $220.00

Loan Repayments

Preliminary Work $125,000.00 $125,000.00

Registration and Licences (Plant) $5,000.00 $5,000.00

Rates $1,500.00 $1,500.00

Research & Development $0.00 $0.00

Security $500.00 $500.00

Subscriptions $15,000.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00

Training $20,000.00 $1,666.67 $1,666.67 $1,666.67 $1,666.67 $1,666.67 $1,666.67 $1,666.67 $1,666.67 $1,666.67 $1,666.67 $1,666.67 $1,666.67

Travel

Air Fares Domestic $22,000.00 $1,833.33 $1,833.33 $1,833.33 $1,833.33 $1,833.33 $1,833.33 $1,833.33 $1,833.33 $1,833.33 $1,833.33 $1,833.33 $1,833.33

Air Fares International $20,000.00 $1,666.67 $1,666.67 $1,666.67 $1,666.67 $1,666.67 $1,666.67 $1,666.67 $1,666.67 $1,666.67 $1,666.67 $1,666.67 $1,666.67

Accommodation Domestic $8,000.00 $666.67 $666.67 $666.67 $666.67 $666.67 $666.67 $666.67 $666.67 $666.67 $666.67 $666.67 $666.67

Accommodation International $10,000.00 $833.33 $833.33 $833.33 $833.33 $833.33 $833.33 $833.33 $833.33 $833.33 $833.33 $833.33 $833.33

Meals Domestic $5,000.00 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67

Meals International $5,000.00 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67

Sundries $2,000.00 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67

Taxi/Hire Cars $4,000.00 $333.33 $333.33 $333.33 $333.33 $333.33 $333.33 $333.33 $333.33 $333.33 $333.33 $333.33 $333.33

E – 3

Telephone

Fixed Line (inc Broadband) $2,400.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00

Mobiles $3,600.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00

Skype $120.00 $120.00

Vehicle Expenses

Quad Bike

Lease/Buy $6,000.00 $6,000.00

Fuel $1,000.00 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33

Service $500.00 $41.67 $41.67 $41.67 $41.67 $41.67 $41.67 $41.67 $41.67 $41.67 $41.67 $41.67 $41.67

Quad Bike Trailer $1,000.00 $1,000.00

Scoop Loader

Price $60,000.00 $60,000.00

Fuel $5,000.00 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67

Service $1,000.00 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33

Tyres $1,000.00 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33

Trailer (8x5 Tandem Galv)

Purchase $3,000.00 $3,000.00

Registration $53.00 $53.00

Work Vehicles

2 X Vehicle Management $21,000.00 $1,750.00 $1,750.00 $1,750.00 $1,750.00 $1,750.00 $1,750.00 $1,750.00 $1,750.00 $1,750.00 $1,750.00 $1,750.00 $1,750.00

Work Ute $12,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00

Service $1,800.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00

Fuel $11,000.00 $916.67 $916.67 $916.67 $916.67 $916.67 $916.67 $916.67 $916.67 $916.67 $916.67 $916.67 $916.67

Tyres $500.00 $125.00 $125.00 $125.00 $125.00

Repairs $1,500.00 $375.00 $375.00 $375.00 $375.00

Insurance $2,500.00 $2,500.00

Registration $2,000.00 $2,000.00

Web Page

Domain $50.00 $50.00

Design $5,000.00 $5,000.00

Support $5,000.00 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67 $416.67

Web Hosting $650.00 $650.00

Wages

Full time $382,358.89 $31,863.24 $31,863.24 $31,863.24 $31,863.24 $31,863.24 $31,863.24 $31,863.24 $31,863.24 $31,863.24 $31,863.24 $31,863.24 $31,863.24

Casual $304,246.59 $25,353.88 $25,353.88 $25,353.88 $25,353.88 $25,353.88 $25,353.88 $25,353.88 $25,353.88 $25,353.88 $25,353.88 $25,353.88 $25,353.88

Performance Bonus $11,376.74 $948.06 $948.06 $948.06 $948.06 $948.06 $948.06 $948.06 $948.06 $948.06 $948.06 $948.06 $948.06

Superannuation $86,377.06 $7,198.09 $7,198.09 $7,198.09 $7,198.09 $7,198.09 $7,198.09 $7,198.09 $7,198.09 $7,198.09 $7,198.09 $7,198.09 $7,198.09

Annual Leave Loading $8,822.71 $735.23 $735.23 $735.23 $735.23 $735.23 $735.23 $735.23 $735.23 $735.23 $735.23 $735.23 $735.23

Payroll Tax $51,204.38 $4,267.03 $4,267.03 $4,267.03 $4,267.03 $4,267.03 $4,267.03 $4,267.03 $4,267.03 $4,267.03 $4,267.03 $4,267.03 $4,267.03

Long Service Leave Provision $14,840.22 $1,236.69 $1,236.69 $1,236.69 $1,236.69 $1,236.69 $1,236.69 $1,236.69 $1,236.69 $1,236.69 $1,236.69 $1,236.69 $1,236.69

Water $2,000.00 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67

Workcover $45,461.61 $3,788.47 $3,788.47 $3,788.47 $3,788.47 $3,788.47 $3,788.47 $3,788.47 $3,788.47 $3,788.47 $3,788.47 $3,788.47 $3,788.47

CAPITAL AND PERSONAL

Draw ings

Other Expenses

TOTAL EXPENSES: $5,043,691.20 $1,858,102.85 $273,861.52 $391,236.52 $608,694.85 $584,648.18 $585,403.18 $119,694.85 $112,194.85 $165,069.85 $119,694.85 $112,194.85 $112,894.85

SURPLUS OR DEFICIT -$5,043,691.20 -$1,858,102.85 -$273,861.52 -$391,236.52 -$608,694.85 -$584,648.18 -$585,403.18 -$119,694.85 -$112,194.85 -$165,069.85 -$119,694.85 -$112,194.85 -$112,894.85

OPENING BALANCE $0.00 -$1,858,102.85 -$2,131,964.37 -$2,523,200.88 -$3,131,895.73 -$3,716,543.92 -$4,301,947.10 -$4,421,641.95 -$4,533,836.80 -$4,698,906.65 -$4,818,601.50 -$4,930,796.35

MONTHLY INCREASE -$1,858,102.85 -$273,861.52 -$391,236.52 -$608,694.85 -$584,648.18 -$585,403.18 -$119,694.85 -$112,194.85 -$165,069.85 -$119,694.85 -$112,194.85 -$112,894.85

CLOSING BALANCE -$1,858,102.85 -$2,131,964.37 -$2,523,200.88 -$3,131,895.73 -$3,716,543.92 -$4,301,947.10 -$4,421,641.95 -$4,533,836.80 -$4,698,906.65 -$4,818,601.50 -$4,930,796.35 -$5,043,691.20

Bank Release $1,900,000.00 $275,000.00 $400,000.00 $600,000.00 $600,000.00 $600,000.00 $120,000.00 $120,000.00 $110,000.00 $110,000.00 $105,000.00 $105,000.00

E – 4

CASH FLOW FORECAST

BUSINESS: Abalone Farm `


2016/17


INCOME:

Abalone

Other

TOTAL INCOME: $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

EXPENSES:

Accounting

Accounting Support $10,000.00 $833.33 $833.33 $833.33 $833.33 $833.33 $833.33 $833.33 $833.33 $833.33 $833.33 $833.33 $833.33

Busines Plan $0.00 $0.00

Legal Costs $10,000.00 $10,000.00

Administration


Cameras $0.00 $0.00

Directors Fees (7) $30,750.00 $7,687.50 $7,687.50 $7,687.50 $7,687.50

Furniture $1,000.00 $1,000.00

MFC Colour Laser Printer $0.00 $0.00

Off ice Supplies $1,000.00 $500.00 $45.45 $45.45 $45.45 $45.45 $45.45 $45.45 $45.45 $45.45 $45.45 $45.45 $45.45

Payroll Management

Setting Up $0.00 $0.00

Ongoing $3,075.00 $256.25 $256.25 $256.25 $256.25 $256.25 $256.25 $256.25 $256.25 $256.25 $256.25 $256.25 $256.25

Postage $1,000.00 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $83.33


Shredder $0.00 $0.00


Advertising $1,025.00 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42

Bank Charges $1,025.00 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42

Computer

Hardw are $0.00 $0.00

Softw are $1,500.00 $1,500.00

Consulting


Construction $79,950.00 $6,662.50 $6,662.50 $6,662.50 $6,662.50 $6,662.50 $6,662.50 $6,662.50 $6,662.50 $6,662.50 $6,662.50 $6,662.50 $6,662.50

Contingency $33,312.50 $2,776.04 $2,776.04 $2,776.04 $2,776.04 $2,776.04 $2,776.04 $2,776.04 $2,776.04 $2,776.04 $2,776.04 $2,776.04 $2,776.04

Electricity $65,000.00 $5,416.67 $5,416.67 $5,416.67 $5,416.67 $5,416.67 $5,416.67 $5,416.67 $5,416.67 $5,416.67 $5,416.67 $5,416.67 $5,416.67

Fuels $5,125.00 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08

Hatchery

Aquire existing infrastructure $0.00 $0.00

Brood Stock Conditioning $0.00 $0.00 $0.00 $0.00


CCTV $1,000.00 $1,000.00

Grow out

Food $85,000.00 $7,083.33 $7,083.33 $7,083.33 $7,083.33 $7,083.33 $7,083.33 $7,083.33 $7,083.33 $7,083.33 $7,083.33 $7,083.33 $7,083.33

Horticultural Sheds $0.00 $0.00 $0.00 $0.00

Slabs & Gutters $0.00 $0.00 $0.00 $0.00

Tippers $0.00 $0.00 $0.00 $0.00

E – 5

Laboratory

Building $0.00 $0.00 $0.00 $0.00

Fit out $0.00 $0.00 $0.00 $0.00

Locksmith (restricted key system) $0.00 $0.00

Maintenance on Buildings $5,000.00 $5,000.00

Medication $1,537.50 $1,537.50

Monitoring Hardw are $500.00 $41.67 $41.67 $41.67 $41.67 $41.67 $41.67 $41.67 $41.67 $41.67 $41.67 $41.67 $41.67

Monitoring Softw are $500.00 $41.67 $41.67 $41.67 $41.67 $41.67 $41.67 $41.67 $41.67 $41.67 $41.67 $41.67 $41.67

Pipeline


Pigging Pipes $2,500.00 $833.33 $833.33 $833.33

Pipeline Maintenance $2,500.00 $833.33 $833.33 $833.33

Screens $2,500.00 $833.33 $833.33 $833.33

Pumps restore

Rebuild/Replace $2,500.00 $833.33 $833.33 $833.33

Racew ays & drains $2,500.00 $833.33 $833.33 $833.33

Replace valves $2,500.00 $833.33 $833.33 $833.33

Sundry Items $2,500.00 $833.33 $833.33 $833.33

Vacuum Pumps $0.00 $0.00

Safety Clothing $20,500.00 $20,500.00

Roadw orks $2,500.00 $833.33 $833.33 $833.33

Security Fence $0.00 $0.00 $0.00 $0.00

Settlement Tanks $0.00 $0.00 $0.00 $0.00


Stock $0.00 $0.00


Oxygen Diffusion Equipment $0.00 $0.00

Self Cleaning Centrifugal Filters $0.00 $0.00

Self Cleaning Filters $0.00 $0.00

Ultra Violet Steriliser $0.00 $0.00

Workshop

Building $5,000.00 $5,000.00

Tools $10,000.00 $10,000.00

Insurance $102,500.00 $102,500.00


Licences

Brood Stock $512.50 $512.50


Farm Licence $2,747.00 $2,747.00

Pipeline license $512.50 $512.50



Loan Repayments

Preliminary Work $0.00 $0.00

Registration and Licences $5,125.00 $5,125.00

Rates $1,537.50 $1,537.50

Research & Development $50,000.00 $50,000.00

Security $512.50 $512.50

Subscriptions $15,375.00 $1,281.25 $1,281.25 $1,281.25 $1,281.25 $1,281.25 $1,281.25 $1,281.25 $1,281.25 $1,281.25 $1,281.25 $1,281.25 $1,281.25

Training $20,500.00 $1,708.33 $1,708.33 $1,708.33 $1,708.33 $1,708.33 $1,708.33 $1,708.33 $1,708.33 $1,708.33 $1,708.33 $1,708.33 $1,708.33

Travel




Accommodation International $10,250.00 $854.17 $854.17 $854.17 $854.17 $854.17 $854.17 $854.17 $854.17 $854.17 $854.17 $854.17 $854.17

Meals Domestic $5,125.00 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08


Sundries $2,050.00 $170.83 $170.83 $170.83 $170.83 $170.83 $170.83 $170.83 $170.83 $170.83 $170.83 $170.83 $170.83

Taxi/Hire Cars $4,100.00 $341.67 $341.67 $341.67 $341.67 $341.67 $341.67 $341.67 $341.67 $341.67 $341.67 $341.67 $341.67

E – 6

Telephone


Mobiles $3,600.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00

Skype $123.00 $123.00

Vehicle Expenses

Quad Bike

Lease/Buy $0.00 $0.00

Fuel $1,025.00 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42

Service $512.50 $42.71 $42.71 $42.71 $42.71 $42.71 $42.71 $42.71 $42.71 $42.71 $42.71 $42.71 $42.71

Quad Bike Trailer $0.00 $0.00

Scoop Loader

Price $0.00 $0.00

Fuel $5,125.00 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08

Service $1,025.00 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42

Tyres $1,025.00 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42


Purchase $0.00 $0.00


Work Vehicles


Work Ute $12,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00

Service $1,845.00 $153.75 $153.75 $153.75 $153.75 $153.75 $153.75 $153.75 $153.75 $153.75 $153.75 $153.75 $153.75

Fuel $11,275.00 $939.58 $939.58 $939.58 $939.58 $939.58 $939.58 $939.58 $939.58 $939.58 $939.58 $939.58 $939.58

Tyres $512.50 $128.13 $128.13 $128.13 $128.13

Repairs $1,537.50 $384.38 $384.38 $384.38 $384.38

Insurance $2,562.50 $2,562.50

Registration $2,050.00 $2,050.00

Web Page

Domain $51.25 $51.25

Design $0.00

Support $5,125.00 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08 $427.08

Web Hosting $666.25 $666.25

Wages

Full time $427,558.18 $35,629.85 $35,629.85 $35,629.85 $35,629.85 $35,629.85 $35,629.85 $35,629.85 $35,629.85 $35,629.85 $35,629.85 $35,629.85 $35,629.85

Casual $44,550.39 $3,712.53 $3,712.53 $3,712.53 $3,712.53 $3,712.53 $3,712.53 $3,712.53 $3,712.53 $3,712.53 $3,712.53 $3,712.53 $3,712.53

Performance Bonus $11,386.55 $948.88 $948.88 $948.88 $948.88 $948.88 $948.88 $948.88 $948.88 $948.88 $948.88 $948.88 $948.88

Superannuation $61,755.47 $5,146.29 $5,146.29 $5,146.29 $5,146.29 $5,146.29 $5,146.29 $5,146.29 $5,146.29 $5,146.29 $5,146.29 $5,146.29 $5,146.29


Payroll Tax $37,193.97 $3,099.50 $3,099.50 $3,099.50 $3,099.50 $3,099.50 $3,099.50 $3,099.50 $3,099.50 $3,099.50 $3,099.50 $3,099.50 $3,099.50


Water $2,050.00 $170.83 $170.83 $170.83 $170.83 $170.83 $170.83 $170.83 $170.83 $170.83 $170.83 $170.83 $170.83

Workcover $32,502.88 $2,708.57 $2,708.57 $2,708.57 $2,708.57 $2,708.57 $2,708.57 $2,708.57 $2,708.57 $2,708.57 $2,708.57 $2,708.57 $2,708.57


Draw ings

Other Expenses

TOTAL EXPENSES: $1,514,193.85 $453,278.56 $102,205.94 $103,102.81 $99,893.44 $92,205.94 $93,102.81 $99,893.44 $92,205.94 $93,102.81 $99,893.44 $92,205.94 $93,102.81

SURPLUS OR DEFICIT -$1,514,193.85 -$453,278.56 -$102,205.94 -$103,102.81 -$99,893.44 -$92,205.94 -$93,102.81 -$99,893.44 -$92,205.94 -$93,102.81 -$99,893.44 -$92,205.94 -$93,102.81

OPENING BALANCE -$5,043,691.20 -$5,496,969.76 -$5,599,175.69 -$5,702,278.50 -$5,802,171.94 -$5,894,377.88 -$5,987,480.69 -$6,087,374.12 -$6,179,580.06 -$6,272,682.87 -$6,372,576.30 -$6,464,782.24

MONTHLY INCREASE -$453,278.56 -$102,205.94 -$103,102.81 -$99,893.44 -$92,205.94 -$93,102.81 -$99,893.44 -$92,205.94 -$93,102.81 -$99,893.44 -$92,205.94 -$93,102.81

CLOSING BALANCE -$5,496,969.76 -$5,599,175.69 -$5,702,278.50 -$5,802,171.94 -$5,894,377.88 -$5,987,480.69 -$6,087,374.12 -$6,179,580.06 -$6,272,682.87 -$6,372,576.30 -$6,464,782.24 -$6,557,885.05

Bank Release $450,000.00 $105,000.00 $105,000.00 $100,000.00 $100,000.00 $100,000.00 $100,000.00 $90,000.00 $95,000.00 $90,000.00 $90,000.00 $90,000.00

E – 7

CASH FLOW FORECAST



2017/18


INCOME:

Abalone

Juveniles purchased year 1 - 75 mm $23,940.00 $47,880.00 $47,880.00

Juveniles purchased year 1 - 85 mm

Larvae from Year 1 - 65mm harvest $185,300.71 $370,601.43 $555,902.14 $185,300.71

Larvae from Year 1 - 70mm harvest $148,726.20 $297,452.40 $297,452.40

Larvae from Year 1 - 75mm harvest $148,268.60 $296,537.20 $296,537.20

TOTAL INCOME: $0.00 $0.00 $0.00 $185,300.71 $370,601.43 $555,902.14 $185,300.71 $148,726.20 $321,392.40 $345,332.40 $196,148.60 $296,537.20 $296,537.20

EXPENSES:

Accounting


Busines Plan Review $0.00 $0.00

Legal Costs $5,000.00 $5,000.00

Administration


Cameras $0.00 $0.00

Directors Fees (7) $31,518.75 $7,879.69 $7,879.69 $7,879.69 $7,879.69

Furniture $1,025.00 $1,025.00


Off ice Supplies $1,025.00 $512.50 $46.59 $46.59 $46.59 $46.59 $46.59 $46.59 $46.59 $46.59 $46.59 $46.59 $46.59

Payroll Management


Ongoing $3,151.88 $262.66 $262.66 $262.66 $262.66 $262.66 $262.66 $262.66 $262.66 $262.66 $262.66 $262.66 $262.66

Postage $1,025.00 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42 $85.42




Advertising $1,050.63 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55

Bank Charges $1,050.63 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55

Computer

Hardw are $0.00 $0.00

Softw are $1,537.50 $1,537.50

Consulting


Construction $81,948.75 $6,829.06 $6,829.06 $6,829.06 $6,829.06 $6,829.06 $6,829.06 $6,829.06 $6,829.06 $6,829.06 $6,829.06 $6,829.06 $6,829.06

Contingency $34,145.31 $2,845.44 $2,845.44 $2,845.44 $2,845.44 $2,845.44 $2,845.44 $2,845.44 $2,845.44 $2,845.44 $2,845.44 $2,845.44 $2,845.44

Electricity $85,000.00 $7,083.33 $7,083.33 $7,083.33 $7,083.33 $7,083.33 $7,083.33 $7,083.33 $7,083.33 $7,083.33 $7,083.33 $7,083.33 $7,083.33

Fuels $5,253.13 $437.76 $437.76 $437.76 $437.76 $437.76 $437.76 $437.76 $437.76 $437.76 $437.76 $437.76 $437.76

Hatchery




CCTV $1,025.00 $1,025.00

Grow out

Food $160,000.00 $13,333.33 $13,333.33 $13,333.33 $13,333.33 $13,333.33 $13,333.33 $13,333.33 $13,333.33 $13,333.33 $13,333.33 $13,333.33 $13,333.33

Horticultural Sheds

Slabs & Gutters $0.00 $0.00 $0.00 $0.00

Tippers $0.00 $0.00 $0.00 $0.00

E – 8

Laboratory $0.00 $0.00 $0.00 $0.00

Building $0.00 $0.00 $0.00 $0.00

Fit out $0.00 $0.00 $0.00 $0.00

Locksmith (restricted key system) $0.00


Medication $1,575.94 $1,575.94



Pipeline


Pigging Pipes $2,562.50 $854.17 $854.17 $854.17


Screens $2,562.50 $854.17 $854.17 $854.17

Pumps restore

Rebuild/Replace $2,562.50 $854.17 $854.17 $854.17

Racew ays & drains $2,562.50 $854.17 $854.17 $854.17

Replace valves $2,562.50 $854.17 $854.17 $854.17

Sundry Items $2,562.50 $854.17 $854.17 $854.17


Safety Clothing $21,012.50 $21,012.50

Roadw orks $2,562.50 $854.17 $854.17 $854.17

Security Fence $0.00 $0.00 $0.00 $0.00



Stock $0.00 $0.00




Self Cleaning Filters $0.00 $0.00


Workshop

Building $2,000.00 $2,000.00

Tools $5,000.00 $5,000.00

Insurance $105,062.50 $105,062.50


Licences (Farm)

Brood Stock $525.31 $525.31


Farm Licence $2,815.68 $2,815.68




Loan Repayments


Registration and Licences (Plant) $5,253.13 $5,253.13

Rates $1,575.94 $1,575.94


Security $525.31 $525.31

Subscriptions $15,759.38 $1,313.28 $1,313.28 $1,313.28 $1,313.28 $1,313.28 $1,313.28 $1,313.28 $1,313.28 $1,313.28 $1,313.28 $1,313.28 $1,313.28

Training $21,012.50 $1,751.04 $1,751.04 $1,751.04 $1,751.04 $1,751.04 $1,751.04 $1,751.04 $1,751.04 $1,751.04 $1,751.04 $1,751.04 $1,751.04

Travel




Accommodation International $21,012.50 $1,751.04 $1,751.04 $1,751.04 $1,751.04 $1,751.04 $1,751.04 $1,751.04 $1,751.04 $1,751.04 $1,751.04 $1,751.04 $1,751.04

Meals Domestic $5,253.13 $437.76 $437.76 $437.76 $437.76 $437.76 $437.76 $437.76 $437.76 $437.76 $437.76 $437.76 $437.76


Sundries $2,101.25 $175.10 $175.10 $175.10 $175.10 $175.10 $175.10 $175.10 $175.10 $175.10 $175.10 $175.10 $175.10

Taxi/Hire Cars $4,202.50 $350.21 $350.21 $350.21 $350.21 $350.21 $350.21 $350.21 $350.21 $350.21 $350.21 $350.21 $350.21

E – 9

Telephone


Mobiles $3,600.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00

Skype $126.08 $126.08

Vehicle Expenses

Quad Bike

Lease/Buy $0.00 $0.00

Fuel $1,050.63 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55

Service $525.31 $43.78 $43.78 $43.78 $43.78 $43.78 $43.78 $43.78 $43.78 $43.78 $43.78 $43.78 $43.78


Scoop Loader

Price $0.00 $0.00

Fuel $5,253.13 $437.76 $437.76 $437.76 $437.76 $437.76 $437.76 $437.76 $437.76 $437.76 $437.76 $437.76 $437.76

Service $1,050.63 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55

Tyres $1,050.63 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55




Work Vehicles


Work Ute $12,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00

Service $1,891.13 $157.59 $157.59 $157.59 $157.59 $157.59 $157.59 $157.59 $157.59 $157.59 $157.59 $157.59 $157.59

Fuel $11,556.88 $963.07 $963.07 $963.07 $963.07 $963.07 $963.07 $963.07 $963.07 $963.07 $963.07 $963.07 $963.07

Tyres $525.31 $131.33 $131.33 $131.33 $131.33

Repairs $1,575.94 $393.98 $393.98 $393.98 $393.98

Insurance $2,626.56 $2,626.56

Registration $2,101.25 $2,101.25

Web Page $0.00

Domain $52.53 $52.53

Design $0.00 $0.00

Support $2,000.00 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67 $166.67

Web Hosting $682.91 $682.91

Wages

Full time $438,247.14 $36,520.60 $36,520.60 $36,520.60 $36,520.60 $36,520.60 $36,520.60 $36,520.60 $36,520.60 $36,520.60 $36,520.60 $36,520.60 $36,520.60

Casual $91,328.31 $7,610.69 $7,610.69 $7,610.69 $7,610.69 $7,610.69 $7,610.69 $7,610.69 $7,610.69 $7,610.69 $7,610.69 $7,610.69 $7,610.69

Performance Bonus $11,671.21 $5,835.60 $5,835.60

Superannuation $67,637.46 $5,636.45 $5,636.45 $5,636.45 $5,636.45 $5,636.45 $5,636.45 $5,636.45 $5,636.45 $5,636.45 $5,636.45 $5,636.45 $5,636.45


Payroll Tax $40,598.93 $3,383.24 $3,383.24 $3,383.24 $3,383.24 $3,383.24 $3,383.24 $3,383.24 $3,383.24 $3,383.24 $3,383.24 $3,383.24 $3,383.24


Water $2,101.25 $175.10 $175.10 $175.10 $175.10 $175.10 $175.10 $175.10 $175.10 $175.10 $175.10 $175.10 $175.10

Workcover $35,598.66 $2,966.56 $2,966.56 $2,966.56 $2,966.56 $2,966.56 $2,966.56 $2,966.56 $2,966.56 $2,966.56 $2,966.56 $2,966.56 $2,966.56


Draw ings

Other Expenses

TOTAL EXPENSES: $1,721,678.03 $417,628.89 $120,251.34 $121,170.64 $170,930.20 $108,418.01 $109,337.31 $122,133.30 $108,418.01 $109,337.31 $116,297.70 $108,418.01 $109,337.31

SURPLUS OR DEFICIT -$1,721,678.03 -$417,628.89 -$120,251.34 $64,130.07 $199,671.23 $447,484.13 $75,963.41 $26,592.90 $212,974.39 $235,995.09 $79,850.90 $188,119.19 $187,199.89

OPENING BALANCE $0.00 -$417,628.89 -$537,880.23 -$473,750.16 -$274,078.93 $173,405.21 $249,368.61 $275,961.51 $488,935.90 $724,930.99 $804,781.89 $992,901.08

MONTHLY INCREASE -$417,628.89 -$120,251.34 $64,130.07 $199,671.23 $447,484.13 $75,963.41 $26,592.90 $212,974.39 $235,995.09 $79,850.90 $188,119.19 $187,199.89

CLOSING BALANCE -$417,628.89 -$537,880.23 -$473,750.16 -$274,078.93 $173,405.21 $249,368.61 $275,961.51 $488,935.90 $724,930.99 $804,781.89 $992,901.08 $1,180,100.97

Bank Release $420,000.00 $120,000.00 $120,000.00 $170,000.00 $110,000.00 $110,000.00 $120,000.00 $110,000.00 $110,000.00 $50,000.00 $0.00 $0.00

E – 10

CASH FLOW FORECAST



2018/19


INCOME:

Abalone



Larvae from Year 1 85mm harvest $435,131.20 $870,262.40 $870,262.40

Larvae from Year 1 100mm harvest $579,883.00 $1,159,766.00 $1,159,766.00

Larvae from Year 2 - 65 mm $219,744.60 $439,489.20 $439,489.20

Larvae from Year 2 - 75 mm harvest $148,268.60 $296,537.20 $296,537.20

TOTAL INCOME: $0.00 $61,685.80 $123,371.60 $123,371.60 $435,131.20 $870,262.40 $870,262.40 $579,883.00 $1,241,969.60 $1,472,441.80 $680,689.00 $736,026.40 $439,489.20

EXPENSES:

Accounting



Legal Costs $2,000.00 $2,000.00

Administration


Cameras $0.00 $0.00

Directors Fees (7) $32,306.72 $8,076.68 $8,076.68 $8,076.68 $8,076.68

Furniture $1,050.63 $1,050.63


Off ice Supplies $1,050.63 $525.31 $47.76 $47.76 $47.76 $47.76 $47.76 $47.76 $47.76 $47.76 $47.76 $47.76 $47.76

Payroll Management


Ongoing $3,230.67 $269.22 $269.22 $269.22 $269.22 $269.22 $269.22 $269.22 $269.22 $269.22 $269.22 $269.22 $269.22

Postage $1,050.63 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55 $87.55




Advertising $1,076.89 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74

Bank Charges $1,076.89 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74

Computer

Hardw are $0.00 $0.00

Softw are $1,575.94 $1,575.94

Consulting


Construction $41,998.73 $3,499.89 $3,499.89 $3,499.89 $3,499.89 $3,499.89 $3,499.89 $3,499.89 $3,499.89 $3,499.89 $3,499.89 $3,499.89 $3,499.89

Contingency $24,499.26 $2,041.61 $2,041.61 $2,041.61 $2,041.61 $2,041.61 $2,041.61 $2,041.61 $2,041.61 $2,041.61 $2,041.61 $2,041.61 $2,041.61

Electricity $100,000.00 $8,333.33 $8,333.33 $8,333.33 $8,333.33 $8,333.33 $8,333.33 $8,333.33 $8,333.33 $8,333.33 $8,333.33 $8,333.33 $8,333.33

Fuels $5,384.45 $448.70 $448.70 $448.70 $448.70 $448.70 $448.70 $448.70 $448.70 $448.70 $448.70 $448.70 $448.70

Hatchery




CCTV $1,050.63 $1,050.63

Grow out

Food $200,000.00 $16,666.67 $16,666.67 $16,666.67 $16,666.67 $16,666.67 $16,666.67 $16,666.67 $16,666.67 $16,666.67 $16,666.67 $16,666.67 $16,666.67

Horticultural Sheds $360,000.00 $120,000.00 $120,000.00 $120,000.00

Slabs & Gutters $56,000.00 $18,666.67 $18,666.67 $18,666.67

Tippers $137,000.00 $45,666.67 $45,666.67 $45,666.67

E – 11

Laboratory

Building $0.00 $0.00 $0.00 $0.00

Fit out $0.00 $0.00 $0.00 $0.00



Medication $1,615.34 $1,615.34



Pipeline


Pigging Pipes $2,626.56 $875.52 $875.52 $875.52


Screens $2,626.56 $875.52 $875.52 $875.52

Pumps restore

Rebuild/Replace $2,626.56 $875.52 $875.52 $875.52

Racew ays & drains $2,626.56 $875.52 $875.52 $875.52

Replace valves $2,626.56 $875.52 $875.52 $875.52

Sundry Items $2,626.56 $875.52 $875.52 $875.52


Safety Clothing $21,537.81 $21,537.81

Roadw orks $2,626.56 $875.52 $875.52 $875.52

Security Fence $0.00 $0.00 $0.00 $0.00



Stock $0.00 $0.00




Self Cleaning Filters $40,000.00 $40,000.00


Workshop

Building $2,050.00 $2,050.00

Tools $5,125.00 $5,125.00

Insurance $107,689.06 $107,689.06


Licences (farm)

Brood Stock $538.45 $538.45


Farm Licence $2,886.07 $2,886.07




Loan Repayments



Rates $1,615.34 $1,615.34


Security $538.45 $538.45

Subscriptions $16,153.36 $1,346.11 $1,346.11 $1,346.11 $1,346.11 $1,346.11 $1,346.11 $1,346.11 $1,346.11 $1,346.11 $1,346.11 $1,346.11 $1,346.11

Training $21,537.81 $1,794.82 $1,794.82 $1,794.82 $1,794.82 $1,794.82 $1,794.82 $1,794.82 $1,794.82 $1,794.82 $1,794.82 $1,794.82 $1,794.82

Travel





Meals Domestic $5,384.45 $448.70 $448.70 $448.70 $448.70 $448.70 $448.70 $448.70 $448.70 $448.70 $448.70 $448.70 $448.70


Sundries $2,153.78 $179.48 $179.48 $179.48 $179.48 $179.48 $179.48 $179.48 $179.48 $179.48 $179.48 $179.48 $179.48

Taxi/Hire Cars $4,307.56 $358.96 $358.96 $358.96 $358.96 $358.96 $358.96 $358.96 $358.96 $358.96 $358.96 $358.96 $358.96

E – 12

Telephone


Mobiles $3,600.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00

Skype $129.23 $129.23

Vehicle Expenses

Quad Bike

Lease/Buy $0.00 $0.00

Fuel $1,076.89 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74

Service $538.45 $44.87 $44.87 $44.87 $44.87 $44.87 $44.87 $44.87 $44.87 $44.87 $44.87 $44.87 $44.87


Scoop Loader

Price $0.00 $0.00

Fuel $5,384.45 $448.70 $448.70 $448.70 $448.70 $448.70 $448.70 $448.70 $448.70 $448.70 $448.70 $448.70 $448.70

Service $1,076.89 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74

Tyres $1,076.89 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74




Work Vehicles


Work Ute $12,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00

Service $1,938.40 $161.53 $161.53 $161.53 $161.53 $161.53 $161.53 $161.53 $161.53 $161.53 $161.53 $161.53 $161.53

Fuel $11,845.80 $987.15 $987.15 $987.15 $987.15 $987.15 $987.15 $987.15 $987.15 $987.15 $987.15 $987.15 $987.15

Tyres $538.45 $134.61 $134.61 $134.61 $134.61

Repairs $1,615.34 $403.83 $403.83 $403.83 $403.83

Insurance $2,692.23 $2,692.23

Registration $2,153.78 $2,153.78

Web Page $0.00

Domain $53.84 $53.84

Design $0.00 $0.00

Support $2,050.00 $170.83 $170.83 $170.83 $170.83 $170.83 $170.83 $170.83 $170.83 $170.83 $170.83 $170.83 $170.83

Web Hosting $699.98 $699.98

Wages

Full time $509,780.43 $42,481.70 $42,481.70 $42,481.70 $42,481.70 $42,481.70 $42,481.70 $42,481.70 $42,481.70 $42,481.70 $42,481.70 $42,481.70 $42,481.70

Hand Casual $93,611.51 $7,800.96 $7,800.96 $7,800.96 $7,800.96 $7,800.96 $7,800.96 $7,800.96 $7,800.96 $7,800.96 $7,800.96 $7,800.96 $7,800.96


Superannuation $70,110.58 $5,842.55 $5,842.55 $5,842.55 $5,842.55 $5,842.55 $5,842.55 $5,842.55 $5,842.55 $5,842.55 $5,842.55 $5,842.55 $5,842.55


Payroll Tax $42,066.13 $3,505.51 $3,505.51 $3,505.51 $3,505.51 $3,505.51 $3,505.51 $3,505.51 $3,505.51 $3,505.51 $3,505.51 $3,505.51 $3,505.51


Water $2,153.78 $179.48 $179.48 $179.48 $179.48 $179.48 $179.48 $179.48 $179.48 $179.48 $179.48 $179.48 $179.48

Workcover $36,900.30 $3,075.03 $3,075.03 $3,075.03 $3,075.03 $3,075.03 $3,075.03 $3,075.03 $3,075.03 $3,075.03 $3,075.03 $3,075.03 $3,075.03


Draw ings

Other Expenses

TOTAL EXPENSES: $2,510,216.62 $751,704.26 $312,419.86 $313,362.14 $180,032.35 $115,957.36 $116,899.64 $130,092.95 $115,957.36 $116,899.64 $124,034.04 $115,957.36 $116,899.64

SURPLUS OR DEFICIT -$2,510,216.62 -$690,018.46 -$189,048.26 -$189,990.54 $255,098.85 $754,305.04 $753,362.76 $449,790.05 $1,126,012.24 $1,355,542.16 $556,654.96 $620,069.04 $322,589.56

OPENING BALANCE $0.00 -$690,018.46 -$879,066.72 -$1,069,057.26 -$813,958.41 -$59,653.38 $693,709.38 $1,143,499.43 $2,269,511.67 $3,625,053.83 $4,181,708.79 $4,801,777.83

MONTHLY INCREASE -$690,018.46 -$189,048.26 -$189,990.54 $255,098.85 $754,305.04 $753,362.76 $449,790.05 $1,126,012.24 $1,355,542.16 $556,654.96 $620,069.04 $322,589.56

CLOSING BALANCE -$690,018.46 -$879,066.72 -$1,069,057.26 -$813,958.41 -$59,653.38 $693,709.38 $1,143,499.43 $2,269,511.67 $3,625,053.83 $4,181,708.79 $4,801,777.83 $5,124,367.38

Bank Release

E – 13

CASH FLOW FORECAST



2019/20


INCOME:

Abalone


Larvae from Year 2 - 100 mm harvest $579,883.00 $1,159,766.00 $1,159,766.00



TOTAL INCOME: $0.00 $435,131.20 $870,262.40 $870,262.40 $0.00 $219,744.60 $439,489.20 $1,019,372.20 $1,159,766.00 $1,308,075.00 $296,618.00 $296,618.00 $0.00

EXPENSES:

Accounting



Legal Costs $2,050.00 $2,050.00

Administration


Cameras $0.00 $0.00

Directors Fees (7) $33,114.39 $8,278.60 $8,278.60 $8,278.60 $8,278.60

Furniture $1,076.89 $1,076.89


Off ice Supplies $1,076.89 $538.45 $48.95 $48.95 $48.95 $48.95 $48.95 $48.95 $48.95 $48.95 $48.95 $48.95 $48.95

Payroll Management


Ongoing $3,311.44 $275.95 $275.95 $275.95 $275.95 $275.95 $275.95 $275.95 $275.95 $275.95 $275.95 $275.95 $275.95

Postage $1,076.89 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74 $89.74




Advertising $1,103.81 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98

Bank Charges $1,103.81 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98

Computer

Hardw are $0.00 $0.00

Softw are $1,615.34 $1,615.34

Consulting


Construction $41,998.73 $3,499.89 $3,499.89 $3,499.89 $3,499.89 $3,499.89 $3,499.89 $3,499.89 $3,499.89 $3,499.89 $3,499.89 $3,499.89 $3,499.89

Contingency $24,849.25 $2,070.77 $2,070.77 $2,070.77 $2,070.77 $2,070.77 $2,070.77 $2,070.77 $2,070.77 $2,070.77 $2,070.77 $2,070.77 $2,070.77

Electricity $102,500.00 $8,541.67 $8,541.67 $8,541.67 $8,541.67 $8,541.67 $8,541.67 $8,541.67 $8,541.67 $8,541.67 $8,541.67 $8,541.67 $8,541.67

Fuels $5,519.06 $459.92 $459.92 $459.92 $459.92 $459.92 $459.92 $459.92 $459.92 $459.92 $459.92 $459.92 $459.92

Hatchery




CCTV $0.00 $0.00

Grow out

Food $250,000.00 $20,833.33 $20,833.33 $20,833.33 $20,833.33 $20,833.33 $20,833.33 $20,833.33 $20,833.33 $20,833.33 $20,833.33 $20,833.33 $20,833.33

Horticultural Sheds $0.00 $0.00 $0.00 $0.00

Slabs & Gutters $0.00 $0.00 $0.00 $0.00

Tippers $0.00 $0.00 $0.00 $0.00

E – 14

Laboratory

Building $0.00 $0.00 $0.00 $0.00

Fit out $0.00 $0.00 $0.00 $0.00



Medication $1,655.72 $1,655.72



Pipeline


Pigging Pipes $2,692.23 $897.41 $897.41 $897.41


Screens $2,692.23 $897.41 $897.41 $897.41

Pumps restore

Rebuild/Replace $2,692.23 $897.41 $897.41 $897.41

Racew ays & drains $2,692.23 $897.41 $897.41 $897.41

Replace valves $2,692.23 $897.41 $897.41 $897.41

Sundry Items $2,692.23 $897.41 $897.41 $897.41


Safety Clothing $22,076.26 $22,076.26

Roadw orks $2,692.23 $897.41 $897.41 $897.41

Security Fence $0.00 $0.00 $0.00 $0.00



Stock $0.00 $0.00




Self Cleaning Sand Filters $0.00 $0.00


Workshop

Building $2,101.25 $2,101.25

Tools $5,253.13 $5,253.13

Insurance $110,381.29 $110,381.29


Licences

Brood Stock $551.91 $551.91


Farm Licence $2,958.22 $2,958.22




Loan Repayments



Rates $1,655.72 $1,655.72


Security $551.91 $551.91

Subscriptions $16,557.19 $1,379.77 $1,379.77 $1,379.77 $1,379.77 $1,379.77 $1,379.77 $1,379.77 $1,379.77 $1,379.77 $1,379.77 $1,379.77 $1,379.77

Training $22,076.26 $1,839.69 $1,839.69 $1,839.69 $1,839.69 $1,839.69 $1,839.69 $1,839.69 $1,839.69 $1,839.69 $1,839.69 $1,839.69 $1,839.69

Travel





Meals Domestic $5,519.06 $459.92 $459.92 $459.92 $459.92 $459.92 $459.92 $459.92 $459.92 $459.92 $459.92 $459.92 $459.92


Sundries $2,207.63 $183.97 $183.97 $183.97 $183.97 $183.97 $183.97 $183.97 $183.97 $183.97 $183.97 $183.97 $183.97

Taxi/Hire Cars $4,415.25 $367.94 $367.94 $367.94 $367.94 $367.94 $367.94 $367.94 $367.94 $367.94 $367.94 $367.94 $367.94

E – 15

Telephone


Mobiles $3,600.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00

Skype $120.00 $120.00

Vehicle Expenses

Quad Bike

Lease/Buy $0.00 $0.00

Fuel $1,103.81 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98

Service $551.91 $45.99 $45.99 $45.99 $45.99 $45.99 $45.99 $45.99 $45.99 $45.99 $45.99 $45.99 $45.99


Scoop Loader

Price $0.00 $0.00

Fuel $5,519.06 $459.92 $459.92 $459.92 $459.92 $459.92 $459.92 $459.92 $459.92 $459.92 $459.92 $459.92 $459.92

Service $1,103.81 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98

Tyres $1,103.81 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98 $91.98




Work Vehicles


Work Ute $12,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00

Service $1,986.86 $165.57 $165.57 $165.57 $165.57 $165.57 $165.57 $165.57 $165.57 $165.57 $165.57 $165.57 $165.57

Fuel $12,141.94 $1,011.83 $1,011.83 $1,011.83 $1,011.83 $1,011.83 $1,011.83 $1,011.83 $1,011.83 $1,011.83 $1,011.83 $1,011.83 $1,011.83

Tyres $551.91 $137.98 $137.98 $137.98 $137.98

Repairs $1,655.72 $413.93 $413.93 $413.93 $413.93

Insurance $2,759.53 $2,759.53

Registration $2,207.63 $2,207.63

Web Page $0.00

Domain $55.19 $55.19

Design $0.00 $0.00

Support $2,101.25 $175.10 $175.10 $175.10 $175.10 $175.10 $175.10 $175.10 $175.10 $175.10 $175.10 $175.10 $175.10

Web Hosting $717.48 $717.48

Wages

Full time $536,528.59 $44,710.72 $44,710.72 $44,710.72 $44,710.72 $44,710.72 $44,710.72 $44,710.72 $44,710.72 $44,710.72 $44,710.72 $44,710.72 $44,710.72

Hand Casual $95,951.80 $7,995.98 $7,995.98 $7,995.98 $7,995.98 $7,995.98 $7,995.98 $7,995.98 $7,995.98 $7,995.98 $7,995.98 $7,995.98 $7,995.98


Superannuation $73,092.11 $6,091.01 $6,091.01 $6,091.01 $6,091.01 $6,091.01 $6,091.01 $6,091.01 $6,091.01 $6,091.01 $6,091.01 $6,091.01 $6,091.01


Payroll Tax $43,828.20 $3,652.35 $3,652.35 $3,652.35 $3,652.35 $3,652.35 $3,652.35 $3,652.35 $3,652.35 $3,652.35 $3,652.35 $3,652.35 $3,652.35


Water $2,207.63 $183.97 $183.97 $183.97 $183.97 $183.97 $183.97 $183.97 $183.97 $183.97 $183.97 $183.97 $183.97

Workcover $38,469.53 $3,205.79 $3,205.79 $3,205.79 $3,205.79 $3,205.79 $3,205.79 $3,205.79 $3,205.79 $3,205.79 $3,205.79 $3,205.79 $3,205.79


Draw ings

Other Expenses

TOTAL EXPENSES: $1,922,608.92 $443,071.46 $136,272.69 $137,238.53 $189,517.16 $123,840.30 $124,806.13 $138,450.89 $123,840.30 $124,806.13 $132,118.89 $123,840.30 $124,806.13

SURPLUS OR DEFICIT -$1,922,608.92 -$7,940.26 $733,989.71 $733,023.87 -$189,517.16 $95,904.30 $314,683.07 $880,921.31 $1,035,925.70 $1,183,268.87 $164,499.11 $172,777.70 -$124,806.13

OPENING BALANCE $0.00 $0.00 -$7,940.26 $726,049.44 $1,459,073.32 $1,269,556.15 $1,365,460.46 $1,680,143.52 $2,561,064.83 $3,596,990.54 $4,780,259.40 $4,944,758.51 $5,117,536.21

MONTHLY INCREASE -$1,922,608.92 -$7,940.26 $733,989.71 $733,023.87 -$189,517.16 $95,904.30 $314,683.07 $880,921.31 $1,035,925.70 $1,183,268.87 $164,499.11 $172,777.70 -$124,806.13

CLOSING BALANCE -$1,922,608.92 -$7,940.26 $726,049.44 $1,459,073.32 $1,269,556.15 $1,365,460.46 $1,680,143.52 $2,561,064.83 $3,596,990.54 $4,780,259.40 $4,944,758.51 $5,117,536.21 $4,992,730.08

Bank Release

E – 16

SummaryCASH FLOW FORECAST

BUSINESS: Abalone Farm ` ` ` `

CASH FLOW PERIOD: Year 1-5

TOTAL TOTAL TOTAL TOTAL TOTAL

INCOME: Year 1 Year 2 Year 3 Year 4 Year 5

Abalone

$2,901,779.00 $7,634,584.00 $6,915,339.00

Other

TOTAL INCOME: $0.00 $0.00 $2,901,779.00 $7,634,584.00 $6,915,339.00

EXPENSES:

Accounting & Legal $235,000.00 $20,000.00 $15,250.00 $12,506.25 $12,818.91

Administration $71,850.00 $41,437.50 $42,473.44 $43,535.27 $44,623.66

Computer $10,500.00 $1,500.00 $1,537.50 $1,575.94 $1,615.34

Consulting $211,250.00 $166,562.50 $170,726.56 $122,496.31 $124,246.26

Electricity $50,000.00 $65,000.00 $85,000.00 $100,000.00 $102,500.00

Hatchery $3,006,500.00 $169,287.50 $243,969.69 $977,838.93 $336,883.01

Insurance $100,000.00 $102,500.00 $105,062.50 $107,689.06 $110,381.29

Leasing Property $52,000.00 $53,300.00 $54,632.50 $55,998.31 $57,398.27

Licences $4,230.00 $4,335.75 $4,444.14 $4,555.25 $4,669.13

Plant and Eqpt Expenses $83,553.00 $13,891.83 $14,239.12 $14,595.10 $14,959.98

Preliminary Work $125,000.00 $0.00 $0.00 $0.00 $0.00

Registration and Licences $5,000.00 $5,125.00 $5,253.13 $5,384.45 $5,519.06

Rates $1,500.00 $1,537.50 $1,575.94 $1,615.34 $1,655.72

Research & Development $0.00 $50,000.00 $50,000.00 $50,000.00 $51,250.00

Security $500.00 $512.50 $525.31 $538.45 $551.91

Subscriptions $15,000.00 $15,375.00 $15,759.38 $16,153.36 $16,557.19

Training $20,000.00 $20,500.00 $21,012.50 $21,537.81 $22,076.26

Travel

Domestic $38,000.00 $38,950.00 $39,923.75 $40,921.84 $41,944.89

International $38,000.00 $38,950.00 $76,695.63 $78,613.02 $80,578.34

Telephone $6,120.00 $6,123.00 $6,126.08 $6,129.23 $6,120.00

Work Vehicles $52,300.00 $52,782.50 $53,277.06 $53,783.99 $54,303.59

Web Page $10,700.00 $5,842.50 $2,735.44 $2,803.82 $2,873.92

Wages

Full Time $382,358.89 $427,558.18 $438,247.14 $509,780.43 $536,528.59

Casual $304,246.59 $44,550.39 $91,328.31 $93,611.51 $95,951.80

Performance Bonus $11,376.74 $11,386.55 $11,671.21 $12,117.82 $12,664.00

Superannuation $86,377.06 $61,755.47 $67,637.46 $70,110.58 $73,092.11

Annual Leave Loading $8,822.71 $8,830.31 $9,051.07 $9,397.42 $9,820.98

Payroll Tax $51,204.38 $37,193.97 $40,598.93 $42,066.13 $43,828.20

Long Service Leave Provision $14,840.22 $14,853.02 $15,224.34 $15,806.92 $16,519.37

Water $2,000.00 $2,050.00 $2,101.25 $2,153.78 $2,207.63

Workcover $45,461.61 $32,502.88 $35,598.66 $36,900.30 $38,469.53


Draw ings

Other Expenses

TOTAL EXPENSES: $5,043,691.20 $1,514,193.85 $1,721,678.02 $2,510,216.62 $1,922,608.92

SURPLUS OR DEFICIT -$5,043,691.20 -$1,514,193.85 $1,180,100.98 $5,124,367.38 $4,992,730.08

OPENING BALANCE $0.00 -$5,043,691.20 -$6,557,885.06 -$5,377,784.07 -$253,416.69

ANNUAL INCREASE -$5,043,691.20 -$1,514,193.85 $1,180,100.98 $5,124,367.38 $4,992,730.08

CLOSING BALANCE -$5,043,691.20 -$6,557,885.06 -$5,377,784.07 -$253,416.69 $4,739,313.39

Bank Release $5,045,000.00 $1,515,000.00 $1,440,000.00

ANNEX F TO


JUNE 2015

2.12.3 Plant and equipment

Buildings:

First aid room

Laboratory

Lunch room

Office

Pump house backup

“ “ northern

“ “ southern

Shed horticulture

“ generating set

“ storage

“ packing

Toilet block

Workshop assembly

“ mechanical

Hatchery:

Tanks settling

“ nursery

Horticultural Sheds

Gutters

Slabs

Tippers

Laboratory:

Brood stock condition equipment

Microscope

Spawning equipment

Office:

Board room

“ “ furniture

Camera

Computers

MFC colour laser printer

Office furniture

Shredder

Telephones:

- Fixed line (inc Broadband)

- Mobiles

Pipelines:

Delivery

Inlet

“ screens

Plant:

CCTV (Serves the dual purpose of remote

monitoring of the key areas of the farm and

provides enhanced security)

Generator (backup)

Quad Bike

Quad Bike Trailer

Scoop Loader

Trailer (8x5 Tandem Galvanised)

Work Vehicles:

- Qty 2 x Vehicle Farm

- Utility

Pumps: Electric pumps

Diesel pump

Vacuum Pumps

Water Filtration System:

Filters centrifugal

‘ fine

Oxygen Diffusion Equipment

Ultra violet purifier (Protects the farm against

all known seaborne pathogens)

Workshop:

Tools

F – 2

Figure 1: Northern pump house

Figure 2: Pig launchers northern pump house

Figure 3: Southern pump house

Figure 4: Pumps in southern pump house

Figure 5: Backup pump house

Figure 6: Backup diesel driven Harland pump

F – 3

Figure 7: Generating set shed

Figure 8: 375 KVA diesel driven generating set

Figure 9: Inlet pipes southern pump house

Figure 10: Return pipe to outflow pond

Figure 11: Settling plates

Figure 12: Grow out raceways

ANNEX G TO


JUNE 2015

G – 2

G – 3

G – 4

ANNEX H TO


JUNE 2015

5.5 Profit and loss forecast

INCOME: Year 1 Year 2 Year 3 Year 4 Year 5

Abalone

$2,901,779.00 $7,634,584.00 $6,915,339.00

Other

TOTAL INCOME: $0.00 $0.00 $2,901,779.00 $7,634,584.00 $6,915,339.00

EXPENSES:

Accounting & Legal $235,000.00 $20,000.00 $15,250.00 $12,506.25 $12,818.91

Administration $71,850.00 $41,437.50 $42,473.44 $43,535.27 $44,623.66

Computer $10,500.00 $1,500.00 $1,537.50 $1,575.94 $1,615.34

Consulting $211,250.00 $166,562.50 $170,726.56 $122,496.31 $124,246.26

Electricity $50,000.00 $65,000.00 $85,000.00 $100,000.00 $102,500.00

Hatchery $3,006,500.00 $169,287.50 $243,969.69 $977,838.93 $336,883.01

Insurance $100,000.00 $102,500.00 $105,062.50 $107,689.06 $110,381.29

Leasing Property $52,000.00 $53,300.00 $54,632.50 $55,998.31 $57,398.27

Licences $4,230.00 $4,335.75 $4,444.14 $4,555.25 $4,669.13

Plant and Eqpt Expenses $83,553.00 $13,891.83 $14,239.12 $14,595.10 $14,959.98

Preliminary Work $125,000.00 $0.00 $0.00 $0.00 $0.00

Registration and Licences $5,000.00 $5,125.00 $5,253.13 $5,384.45 $5,519.06

Rates $1,500.00 $1,537.50 $1,575.94 $1,615.34 $1,655.72

Research & Development $0.00 $50,000.00 $50,000.00 $50,000.00 $51,250.00

Security $500.00 $512.50 $525.31 $538.45 $551.91

Subscriptions $15,000.00 $15,375.00 $15,759.38 $16,153.36 $16,557.19

Training $20,000.00 $20,500.00 $21,012.50 $21,537.81 $22,076.26

Travel

Domestic $38,000.00 $38,950.00 $39,923.75 $40,921.84 $41,944.89

International $38,000.00 $38,950.00 $76,695.63 $78,613.02 $80,578.34

Telephone $6,120.00 $6,123.00 $6,126.08 $6,129.23 $6,120.00

Work Vehicles $52,300.00 $52,782.50 $53,277.06 $53,783.99 $54,303.59

Web Page $10,700.00 $5,842.50 $2,735.44 $2,803.82 $2,873.92

Wages

Full Time $382,358.89 $427,558.18 $438,247.14 $509,780.43 $536,528.59

Casual $304,246.59 $44,550.39 $91,328.31 $93,611.51 $95,951.80

Performance Bonus $11,376.74 $11,386.55 $11,671.21 $12,117.82 $12,664.00

Superannuation $86,377.06 $61,755.47 $67,637.46 $70,110.58 $73,092.11

Annual Leave Loading $8,822.71 $8,830.31 $9,051.07 $9,397.42 $9,820.98

Payroll Tax $51,204.38 $37,193.97 $40,598.93 $42,066.13 $43,828.20

Long Service Leave Provision $14,840.22 $14,853.02 $15,224.34 $15,806.92 $16,519.37

Water $2,000.00 $2,050.00 $2,101.25 $2,153.78 $2,207.63

Workcover $45,461.61 $32,502.88 $35,598.66 $36,900.30 $38,469.53


Draw ings

Other Expenses

TOTAL EXPENSES: $5,043,691.20 $1,514,193.85 $1,721,678.02 $2,510,216.62 $1,922,608.92

SURPLUS OR DEFICIT -$5,043,691.20 -$1,514,193.85 $1,180,100.98 $5,124,367.38 $4,992,730.08

ANNEX I TO


JUNE 2015

5.6 Expected cash flow

Cash Flow is forecast to begin in Year 3. (Refer to detailed cost analysis spreadsheet at annex D.)

Cash Flow is forecast on the following basis:

a. Juvenile abalone purchased to commence operation in 2015, and

b. Abalone spawned in 2015.

5.6.1 Expected cash flow forecast resulting from purchase of Juvenile abalone to commence

operation in 2015. The calculations in this projection are based on the current prices indicated by

Western Abalone Processors (Annex G). No allowance has been made for the gradual price rises

that history has shown occur.

a. Year 1. August 2015, 200,000 juvenile abalone will be purchased at around the 10-15

mm size (This is allowed for in the detailed cost analysis spreadsheet at annex E). These

abalone will be placed in the nursery section for 6 months where they should grow to a

size of 20-25 mm.

A mortality rate of 10% is factored in during this stage, which will leave approximately

180,000 abalone.

b. Year 1. In early 2016 these abalone will be transferred to the newly completed first

stage of the Slab Farm where they will be placed at an approximate density of 16,400

per slab/gutter which means that they will take up about 11 slabs. At this density the

abalone will not need to be thinned if the natural mortality continues at around 10% per

annum as expected.

c. Year 2. By March 2017 these abalone will be in the 50 mm size range. A mortality rate

of 10% is factored in, which will leave approximately 162,000 abalone.

d. Year 3. By March 2018 these abalone should be in the 75 mm size range.


145,800 abalone. The abalone will need to be thinned out to enable the remainder to

continue to grow.

Not all of the abalone are expected to attain the 75 mm size at the same time. As they

come to size they will be gradually harvested and sold. It will take 3 months to harvest

20% (29,160) of the abalone, leaving 116,640 abalone

29,160 abalone at 75 mm will yield about 1,050 kg of meat worth $119,700.00.

e. Year 4. By August 2018 the abalone will have grown to 85 mm when 50% will be

harvested.


110,808 abalone.

55,404 abalone at 85 mm will yield about 2,549 kg of meat worth $308,429.00

I – 2

f. Year 4. By March 2018 the abalone will have grown to 100 mm when the remainder

will be harvested.


52,634 abalone, which will yield about 3,369 kg of meat worth $411,018.00

A total $839,014.00 over year 3 and 4.

5.6.2 Expected cash flow forecast resulting from abalone spawned in 2015. These abalone are

expected to contribute cash flow in years 3, 4 and 5.

a. Year 1. In September – October 2015, 3,000,000 abalone will be spawned in the new

Laboratory spawning complex. They will be put in to the settling tanks where 80%

(approx 2,400,000) are expected to settle.

b. Year 1. These abalone will grow to a size of approximately 10 mm over the first six

months when they will be transferred to the nursery tanks in about March 2016.

c. Year 2. After a further 6 months these abalone will grow to a size of 20-25 mm.


2,160,000 abalone.

In August 2016 these 20-25 mm abalone will be transferred to the Slab Farm at an

average density of 25,000 per slab/gutter for the remaining 85 slabs/gutters. Any excess

will be released in to the drains to free range.

d. Year 2. By June 2017 these abalone should be in the 50 mm size range.


22,500 abalone per slab. By this stage the abalone density will be approximately 71%

on the slabs. None will need to be harvested.

e. Year 3. By October 2017 the abalone should be in the 60/65 mm range. A mortality

rate of 5% is factored in during this stage, which will leave approximately 21,375

abalone per slab.

As soon as these abalone start to reach 60 mm approximately 34% will need be

harvested to create sufficient room for the remainder to continue to grow. This will

yield about 13,373 kg of meat which will return $1,297,105.00

About 14,672 abalone will remain on each slab.

f. Year 3. By April 2018 these abalone should be in the 75 mm size range.

A further mortality of 5% will leave approximately 13,938 abalone per slab.

It will be necessary to harvest all of the product from 13 slabs to create enough room for

the following years spawning. This will yield about 6,523 kg of meat, which will return

$743,631.00.

I – 3

g. Year 3. April 2018 of the remaining abalone in the 75 mm size range 18% will need to

be harvested.

This will yield 6,503 Kg of meat worth $741,343,00

11,429 abalone will remain on each slab.

h. Year 4. By August 2018 the abalone should be in the 85 mm range. A further mortality

rate of 5% will leave approximately 10,858 abalone on each slab.

50% of the abalone will be harvested at this point with the remaining abalone being

concentrated on 48 slabs. The spare slabs are then ready for the next cycle.

This harvest will yield about 17,981 kg of meat worth $2,175,656.00

i. Year 4. By February 2019 the remaining abalone should be at 100 mm. A further

mortality rate of 5% will leave approximately 7,735 abalone on each slab.

All of the remaining abalone will be harvested. This will yield about 23,766 kg of meat,

worth $2,899,415.00

5.6.3 Production sequence. From year four on, the production will become more consistent. Each

year will see 72 slabs populated with juvenile abalone. This will result in about 149 tonne of

abalone per year worth about $6,915,137.00 on today’s values.

5.6.4 Assumptions. This exercise assumes that all of the abalone will grow at a consistent rate.

This is not the case. While there will be a mean growth rate that will follow the predictions; because

of many variables, some of the abalone will grow faster and others more slowly. This will mean that

harvesting will take place when necessary and will not be as clearly defined as in this exercise.

The slab densities used in these calculations include conservative stock removal to enable

maximum growth rates.

All product was harvested at a size of 100 mm. No allowance has been made for larger product with

significantly higher yields.

Slab technology is the current leading edge in abalone production, it is expected that once the

management of the slabs is refined that production will be higher than in the projection.

This exercise does not include the sale of shell, larvae or juvenile abalone to other markets.

ANNEX J TO


JUNE 2015

5.7 Break Even Analysis

The breakeven point for Annual operation is projected to occur in year 3.

The projections are:

Year 1

Expenditure $5,043,691.00

Income Nil

Year 2


Income Nil

Year 3


Income $2,901,779.00

Year 4


Income $7,634,584.00

Year 5


Income $6,915,339.00

Figure: 1

0.00

1,000,000.00

2,000,000.00

3,000,000.00

4,000,000.00

5,000,000.00

6,000,000.00

7,000,000.00

8,000,000.00

Year 1 Year 2 Year 3 Year 4 Year 5

Break even analysis

Expenditure

Income

ANNEX K TO


JUNE 2015

Market Information

The world wild catch production has fallen from a high in 1970 of about 20,000 tonnes to about

7,000 tonnes presently of which Australia supplies about 4,500 tonnes.

Farmed abalone has boomed. World production in 2002 was a little over 1,000 tonnes. China is the

largest producer. Chinese production last year was estimated to be around 90,000 tones. The

Chinese product does not command a high price and the farms in bays and harbours are in water of

very poor quality. They appear to have significant financial challenges because of the low value of

their product and recently implemented austerity measures on Government spending. It has been

forecast that because of the problems the Chinese farms are experiencing that production will fall to

only 50,000 tonnes this year.

From a paper: “Recent Developments in the International Abalone Industry”

by Peter Cook

Centre of Excellence in Natural Resource Management

University of Western Australia

Chairman

Technical Advisory Group

Aquaculture Stewardship Council

"It could be argued, in fact, that the previous huge production of abalone in China may have

positive results for Australian exporters because, production from Chinese farms is falling at a time

when millions of new Chinese consumers have been introduced to eating abalone. Individual

customers are not as much affected by austerity measures and they may now be looking elsewhere

to source abalone"

The information is compiled from various sources:

Australian Bureau of Statistics

Abalone Council Australia Ltd

FISHTECH INC

PIRSA Fisheries

Documents

CONFIDENTIAL - Australian Military · PDF file5.3 Start-up costs for Year 1 ... One of the Pioneers of the Wild catch Abalone Industry. ... Japanese and other growing Asian markets