AI assistant
JATCORP LIMITED — Capital/Financing Update 2015
Apr 21, 2015
65154_rns_2015-04-21_0ad9aa15-fd5f-4503-a21f-7cce5af73d7c.pdf
Capital/Financing Update
Open in viewerOpens in your device viewer
==> picture [139 x 125] intentionally omitted <==
JATENERGY LIMITED ABN 31 122 826 242
ASX CODE: JAT
AUSTRALIAN REGISTERED OFFICE
Floor 6, Suite 8 55 Miller Street PYRMONT NSW 2009 AUSTRALIA
CONTACT DETAILS Telephone +61 2 9571 8300 Facsimile +61 2 9571 8200 Email [email protected] Web www.jatenergy.com
ASX ANNOUNCEMENT
22 April 2015
Soft Commodity Sales to China
HIGHLIGHTS
-
Jatenergy Development Pty Ltd first shipment of milk powder FMCG (Fast Moving Consumer Goods) to China.
-
Cash flow project taking advantage of China Free Trade.
-
Jatenergy maintains current energy assets using Soft Commodity trading to add cash flow and profit while waiting for energy sector to rebound.
FMCG Trading and the Free Trade Agreement China
==> picture [201 x 201] intentionally omitted <==
==> picture [201 x 200] intentionally omitted <==
Jatenergy Development Pty Ltd (JD) (subsidiary of Jatenergy Limited) is exporting its first shipment of milk powder from Australia to China. This export represents the start of Jatenergy’s foray into soft commodity trading. By utilising Jatenergy’s strong Chinese business network the Group is able to source buyers. This is further enhanced with the recently signed China Australia Free Trade Agreement (ChAFTA) and China’s growing demand for fresh clean produce that Australia is now globally recognised.
“China is excited about Australian produce. Its freshness and quality is considered to be the best and is becoming most sought after. Jatenergy has been preparing for the introduction of the China Free Trade Agreement and has positioned itself as a soft commodity conduit between Australia and China,” says Mr Wilton Yao, Director Jatenergy Development Pty Ltd.
The ChAFTA was signed on 17 November 2014 after nearly 10 years of negotiations. China is Australia’s biggest export trade partner accounting for over 33% of export trade. The ChAFTA will ultimately mean that 95% percent of Australian exports to China will be tariff free. At the moment some exports attract a hefty 40% tariff tax. Products from Australia’s agriculture sector include beef and dairy. Building on trade deals already concluded with Korea and Japan, ChAFTA forms part of a powerful trifecta of agreements
==> picture [79 x 72] intentionally omitted <==
with Australia’s three largest export markets that account for more than 61% of our exports of goods. Most important is that the ChAFTA allows for further liberalisation and the expansion of market access over time. This places Australia and Jatenergy in a strong position to secure additional gains as China undergoes further economic reform into the future.
Cash Flow Strategy
As detailed at Jatenergy’s recent AGM the Company is focused on a four pillar strategy of Technology, Cash Flow, Coal and Biofuels. This structure allows Jatenergy to maintain growth, through highly valued assets, as well as constant cash to maintain the company. Soft commodity trading provides cash to the Group to maintain its operations and market its technology and hard assets. “Having the flexibility to move where there is an opportunity and cash generation is essential for all small cap resourced based companies” said Tony Crimmins, Executive Director of Jatenergy. “We can tap into our Australian and Chinese network to source products and distribute them in China.”
==> picture [15 x 189] intentionally omitted <==
==> picture [15 x 189] intentionally omitted <==
==> picture [479 x 94] intentionally omitted <==
==> picture [479 x 95] intentionally omitted <==
==> picture [479 x 94] intentionally omitted <==
Existing Jatenergy Assets
Jatenergy will maintain its current coal assets, namely Coal Soil Brik and Jong Kang. The Company expects that coal prices have levelled and await price uplift to further exploit their value.
The Directors have made the decision to exit our biofuel plantation joint ventures in South East Asia. This is part is due to the current depressed oil prices, but also because it is believed Jatenergy’s technology pillar will provide a better return for involvement in biofuels. Our existing joint ventures will be done in an orderly manner. The biofuel assets are held at nil value in the Group’s balance sheet.
==> picture [79 x 72] intentionally omitted <==
About Jatenergy
Jatenergy (ASX: JAT) is an ASX listed energy investment company, focused on conventional, second generation and energy conversion technologies. Jatenergy also trades in soft commodities, acquires projects and technologies, and creates value through its extensive marketing and promotion activities.
Media and Management Contact
Tony Crimmins +61 2 9571 8300 [email protected]
==> picture [15 x 189] intentionally omitted <==
==> picture [15 x 189] intentionally omitted <==
About Jatenergy
Jatenergy Limited is a Sydney‐based diversified energy company operating in both Australia and Asia. Jatenergy’s strategic focus is on producing cash returns from its trading and coal assets as well as implementing the proprietary technologies for upgrading low grade coal and recovery of energy materials from waste materials.
Directors
Tony Crimmins Executive Chairman
Mr Xipeng Li Non‐Executive Director
Mr Wilton Yao Non‐Executive Director
Jatenergy Limited ABN 31 122 826 242
ASX code JAT
Ordinary fully paid shares 130,345,729