PRIMEAG AUSTRALIA LIMITED 
By
30th August, 2012
The Manager
Company Announcements
Australian Securities Exchange - ASX Limited
Exchange Centre
Level 6, 20 Bridge Street
Sydney NSW 2000
Via E-Lodgement
Dear Sir / Madam,
Attached for the market's information is the announcement for
the period ending 30 June
2012.
Samantha Macansh
Company Secretary
T E L E P H O N E : 6 1 7 4 6 8 8 4 5 8 8 F A C S I M I L E : 6 1 7 4 6 1 3 0 2 3 0
S T R E E T A D D R E S S : 78 W E S T S T T O O W O O M B A Q L D 4 3 5 0
P O S T A L A D D R E S S P O B O X 1 3 1 2 , T O O W O O M B A B U S I N E S S C E N T R E Q L D 4 3 5 0
PrimeAg Announces Plan to Unlock Shareholder Value and FY12 Results
PrimeAg Australia Ltd (PrimeAg), (ASX : PAG), today announced
a plan to unlock shareholder value in the business, including
a capital return to shareholders and an operating profit in
line with most recent guidance.
PrimeAg Chairman, Roger Corbett said "Due to the inadequate
recognition by the listed market of the value of the company
assets, the Board has resolved, with the support of major
shareholders, to determine if there is an acceptable proposal
to unlock value for all shareholders at a price and on terms
that are in the best interests of all shareholders."
Consideration will therefore be given to proposals to
privatise the Company through an acquisition of the assets
via a process of public tender managed by an independent
qualified party.
"Capital released from a privatisation or the sale of assets
will be returned to shareholders."
"An advisor will be appointed to assist the process which
will take several months. Shareholders will be kept informed
of developments. If a privatisation process is successful,
shareholder approval will be required."
"If the process is not successful, PrimeAg will conduct an
orderly divestment of its
properties and return the proceeds to shareholders," Mr
Corbett said.
"In view of the possible privatisation of the business, the
Board has also decided to use the proceeds of recent asset
sales to return approximately $40M, or 15 cents per ordinary
share of capital to shareholders by way of a capital return."
Mr Corbett added.
FY12 Results
PrimeAg announced today that FY12 profit from operations and
investment activities was
$10.4M. After valuation adjustments, the net profit before
tax was $7.2M and net profit after tax was $5M.
PrimeAg Managing Director and CEO, Peter Corish said that
"PrimeAg's FY12 crop production was at the higher end of
expectations in a challenging year with yields of both cotton
and wheat up on last year. However, with the reduction
earlier in the year of global wheat prices, and, more
recently cotton prices coupled with continuing strength of
the A$, our operating profit has been reduced. The effect of
reduced commodity prices together with increased cotton
ginning prices (over a full production year), has reduced
returns by approximately $11M ".
"It is pleasing that following recent revaluation of the
McIntyre Downs, Mullala, Crooble and Dodds properties, the
value of the company's assets has increased by $5.7M which
incorporates a $2.6M reversal of prior impairment and $3.1M
increase booked to the revaluation reserve.
"An impairment of $3.2M to land and water assets was booked
to the profit and loss for the year reflecting $5.8M of water
impairment offset by $2.6M reversal of prior impairment to
land assets."
Mr Corbett added "following a year of less than expected
operating returns, all Directors, including the Managing
Director have agreed to accept a 35% reduction in
remuneration from 1st August 2012."
Net asset backing per ordinary share at 30 June 2012 was
$1.58.
"Due to the planned capital return to shareholders, no
dividend has been declared for the
FY12 year," Mr Corbett concluded.
Ends
Note- CEO Peter Corish will host a teleconference for
shareholders and analysts at 2pm today to discuss the FY12
results. Please contact Fiona at 07-46884588 to obtain dial
in detail.
Media contact - Peter Corish
07- 46884588
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