AAC update on QLD floods and dry weather

Company News

by Anna Napoli

The Australian Agricultural Company (ASX:AAC) has today provided an update on the impact of the recent floods in north-western Queensland ,and, the continued impact of the widespread drought conditions occurring across Australia.

An early estimate of the cost of repairing damage to property, plant, fencing, station and water infrastructure is in the range of $6 to 8 million.

Overall livestock losses were less than initial expectations in some cases, and the Company has completed an updated evaluation of cattle numbers found to have survived.

Flood levels in the Gulf have now largely receded and the Company has been able to undertake on the-ground assessments of the impact to livestock and infrastructure.

AAC says the speed, scale and extent of this natural disaster was unprecedented in the region and the impact on the local community and industry in the Gulf cannot be underestimated.

The dry conditions and extreme heat have significantly impacted the AAC’s cost of production, and operating expenses will continue to increase with further deterioration in the season. AAC had expenses for the first half of the 2019 financial year of $28.5 million, and the second half is expected to be substantially in line with that trend.

Shares in The Australian Agricultural Company (ASX:AAC) are trading 2.03 per cent higher at $1.01.

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.