Put Option PurchaseWednesday 12 December, 2007 Landkom Intl Plc Put Option Purchase Landkom International Plc 12 December 2007
Landkom International Plc ('Landkom' or 'the Company')
Put Option Purchase
5,000 tonnes of 2008 oil seed rape crop hedged at $537 per tonne
Landkom International Plc, (AIM: LKI) the Ukrainian producer of high-value oil seed rape and wheat has entered into a put option agreement for 5,000 tonnes of oil seed rape for delivery in November 2008 at $537 per tonne (before transportation costs). This is significantly higher than the price per tonne estimated by the market at the time of its admission to AIM in November 2007. The counterparty to the option agreement is a division of a leading financial institution.
While the management's operational focus is on delivery of high yields of oil seed rape and wheat on large, contiguous areas of land, the Board will use, as appropriate and as the opportunity arises, such instruments as part of its proactive and prudent management of the business. The put option underpins the Company's internal budgeting and hedge price expectations around the oil seed rape harvest in 2008.
Richard Spinks, Landkom Chief Executive, commented:
'We are pleased to have locked in 5,000 tonnes of our oil seed rape harvest at levels significantly higher than market price expectations. However, we remain very bullish that the price of oil seed rape will remain strong for the foreseeable future. This option does not prohibit us from taking advantage of higher prices in the spot markets for the majority of our 2008 crop harvest.
'Food prices are continuing to rise strongly as demonstrated by The Economist's food-price index, which is higher today than at any time since it was created in 1845, with prices in real terms up 75% since 2005 (6 December 2007 - 'The End of Cheap Food'). For us specifically, wheat prices have also continued to increase strongly and are at a spot price of $270 per tonne again significantly greater than the market estimates at the time of our admission to AIM'
For further information:
Landkom International Plc www.landkominternational.com
Richard Spinks, Chief Executive Tel: +380 673 410 140
Libertas Capital
Aamir Quraishi/Stephen Pickup Tel: +44 (0)20 7569 9650
College Hill
Simon Whitehead/Adrian Duffield/Matthew Gregorowski Tel: +44 (0)20 7457 2020
Note to Editors
Landkom International Plc
Landkom International Plc is a large scale producer of agricultural feedstock, principally oil seed rape and wheat, for supply to the European biodiesel and food industries.
Operating in Western Ukraine in the prime, fertile lands close to the border with Poland, Landkom has secured a land bank in excess of 50,000 hectares and has completed the plantation of its first commercial crop of over 10,000 hectares. Landkom has a target to increase the land bank in Ukraine to at least 350,000 hectares by 2011.
Landkom is implementing Western-style agronomy practices using modern agricultural equipment to carry out efficient, large-scale farming techniques that will result in greater return from the land, increase levels of employment in the region and support further investment into the local economy.
Following first round funding in April 2007 of £6.9 million, Landkom completed a listing on AIM in mid November 2007 raising net £50.1 million at a valuation of £98.4 million. 12 December 2007
|
Landkom Share Price Index
LKI Current: 8.75p 52wk Minimum: 5.12p 52wk Maximum: 12.5p Market Value: £38.1 million Last updated 03 September 2010
Landkom on course to achieve profits
Interim Results
Notice of Interim results - 20 July 2010
Landkom International PLC (AIM: LKI), the Ukrainian producer of agricultural commodities, will be publishing its Interim results for the six months to 30 April 2010 on Tuesday, 20 July 2010
29 June 2010 Read more...
35,000 tonnes of rapeseed sold forward at approximately $318 per tonne
Completion of Spring Planting
     |
||||
 |
|||
|
|||
