Alterra Ltd (ASX:1AG) has developed a strategy to optimise stage 2 planting at its flagship Carpenters Avocado Project in Western Australia’s premium avocado region between Manjimup and Pemberton.
The company has engaged Pendulum Capital Pty Limited to project manage the upcoming planting program for stage 2.
Promisingly, the board and the Alterra technical team have worked alongside Pendulum to develop a strategy to optimise development plans with a strict focus on costs whilst managing site conditions to ensure the long-term performance and sustainability of the project.
“Long-term performance and sustainability”
Alterra chairman John McGlue said: “Key for Alterra is to ensure the long-term performance and sustainability of this large scale, world-class asset, a principle that underpins our decision to approach the stage 2 planting according to the current weather conditions.
“We don’t expect any material delay to overall project cashflows, but we do anticipate higher yields and scale benefits from the re-configurated blocks.
“Importantly, the changes reduce overall capex per tree and fortify the project economics.”
“We are pleased with the comprehensive advice received from Pendulum Capital and overwhelmingly support the recommendations made on developing and optimising Carpenters.”
Forward plan
The Pendulum team has decades of experience in developing and managing large-scale, highly profitable agriculture projects, including greenfield rehabilitation and planting programs.
Field preparations for stage 2 have progressed to the extent possible, however, unseasonably heavy rains have made it difficult to mobilise heavy equipment for final soil preparation and additional sub-surface drainage.
The company is now proceeding to order the necessary machinery and equipment for stage 2 and future plantings on the Carpenters project.
At full planting, the Carpenters project will be serviced by a major dam that is under construction.
Alterra has also decided to explore a cost-efficient plan to expand the existing off-stream dam which currently services the 5-hectare stage 1 trial planting completed in 2020, mitigating inherent risk from a single water source and adding valuable water security.