Monday 16th April 2018
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Zespri Group said corporate revenue from the 2018 allocation of the Gold3 license release will be $190 million to $195 million, or around $253,000-to-$260,000 per hectare, a figure that is up on the prior year.
The range is the combined revenue estimate resulting from 700 hectares of Gold3 licence, and 50 hectares of Gold3 Organic new development licence, both released under a closed tender bid mechanism, New Zealand's statutory kiwifruit exporter said in a release. The validation process for all bids is still ongoing and all bidders will be notified of their outcome from May 1.
In the prior year, Zespri awarded 400 hectares of Gold3 licence, generating corporate revenue of $98.2 million, or around $245,500 a hectare.
For both the 2017 and 2018 Gold3 tender processes, Zespri has not provided deferred payment terms, and therefore the invoice amount for this release is due to be fully received by Zespri by the end of July 2018. A decision by the board on the payment of an interim dividend in relation to these licence proceeds will likely occur in July.
The Gold3 or SunGold variety has proven popular as it is more resistant to the Pseudomonas syringae pv actinadiae bacteria, better known as PSA.
Last October, Zespri said it would allocate 700 hectares of SunGold licence in 2018 and 50 hectares of Organic SunGold licence and announced plans to extend the release of licences out to 2022 which would see 3,500 hectares released over the next five years. That's subject to an annual review to weigh up any new risks that emerge.
The shares last traded at $8.12 but have been on a trading halt on the Unlisted securities exchange since April 11 to allow finalisation of the tender process. They will resume trading on Thursday morning.
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