AACL expects lower grain production this year
Grain producer AACL Holdings Ltd expects lower production tonnages in the 2010 financial year, with a consequent impact on revenue and earnings.
AACL said on Tuesday (July 6) that a review of its financial performance had been under way for some weeks.
"An announcement on revised earnings guidance for the 2010 financial year will be made as soon as possible," AACL said in a statement.
AACL said it had successfully completed a funding agreement with Glencore Grain Pty Ltd, under which Glencore will provide funding for AACL's grain co-production contracts for 2010.
AACL and Glencore will then partner to market the 2010 season grain.
AACL said the agreement with Glencore means that it no longer requires funding from CBH Grain.
Glencore will provide up to AUD28.8 million (US$24.1 million) to supplement AACL's existing funding from retail investors of AUD24 million (US$20.1 million) to fund grain co-production agreements with about 200 farmers across southern Australia.
Shares in AACL were one cent lower at 11 cents at 1022 AEST on Tuesday (July 6).
