Sugar Terminals : STL Presentation to QCGO Board & Policy Council
July 29, 2022 at 04:05 am EDT
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STL Operational Update to QCGO Board & Policy Council
Mark Gray - Chairman
David Quinn - Chief Executive Officer
19 July 2022
Topics of Discussion
Introduction to STL
Operational Update & 2022 Crush
Storage & Handling Agreement Update
Infrastructure Investment
Focus for the Future
Introduction to STL
Role: receival, storage and outloading of raw sugar on behalf of customers
Listed NSX entity, owned 2/3 by growers, 1/3 by millers
7 member Board (includes 3 independents including the Chair)
Current share price: $1.03
Market capitalisation: $370M
Share price growth since NSX listing (2004): +329%
Share price growth since change to new operating model (2017): +20%
Average returns to shareholders (last 5 years): +12.3% (15.8% when allowing for franking credits)
Written-downvalue of assets: $331 million
Replacement value of assets: $2.2 billion
Operational Update and 2022 Crush
All BSTs open for receival & outloading with first sugar received late May 2022
Overall storage volumes in BST's just prior to 2022 Crush were at ~ 20% (lower than normal)
Reflection of strong sugar demand and pricing
Discrete Covid outbreaks at sites being managed without disruption to receival or outloading
As at end June circa 8% (~300K) of the nominated 2022 crush has been received
Nominated volumes are up ~7% as compared to 2021 crush actuals
Almost all Sugar Mills now operating
Strong shipping schedule planned for July & August 2022
Storage & Handling Agreement (SHA) Update - Process
One SHA single document applies to all 6 STL customers
Previous SHA commenced 1 July 2018 and expired on 30 June 2022
Option to extend previous agreement not exercised by 2 parties, necessitating negotiations with all parties on terms of a new agreement
Due to competition principles, STL required by law to negotiate individually with all customers and ultimately eventual outcome must then be applied uniformly across all 6 customers
Discussions commenced with each customer in October 2021 and a series of 'negotiating principles' adopted. Clear and transparent timetable established and maintained by STL
5 separate drafts of the new SHA produced over 5 months along with detailed supporting information and concessions made by all parties (including STL) on multiple fronts to reach agreed terms
STL clear from outset that receiving and outloading of sugar from the 2022 Crush would continue, irrespective of SHA outcome - no disruption to industry
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Sugar Terminals Ltd. published this content on 29 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2022 08:04:13 UTC.
Sugar Terminals Limited is an Australia-based company that provides sustainable, and storage and handling solutions for bulk sugar and other commodities. The Company owns and operates six bulk commodity terminals in Queensland, located at the ports of Cairns, Mourilyan, Lucinda, Townsville, Mackay, and Bundaberg. The Company's terminals receives and outloads approximately 7.5 million tons of storage capacity and provides 2.48 million tons of storage capacity. In addition to around four million tons of bulk sugar, the Company also handles more than half a million tons of other commodities annually, including molasses, wood pellets, gypsum, and silica sands.