MCA Boosts Average Fish Weight by 29%, Secures $43M Westpac Facility

Funding and Financial Position

Murray Cod Australia Ltd (ASX: MCA) has fortified its financial foundation by securing a $43 million funding facility from Westpac Banking Corporation. This new financing package replaces the previous $20 million facility with iPartners, providing the company with additional capital to support its ambitious growth plans. The facility includes a $30 million term loan, a $10 million overdraft, and a $3 million equipment finance facility, all secured against land, water assets, and equipment.

This injection of capital complements the $20.4 million equity raise completed in June 2024, positioning MCA with approximately $26.8 million in available funding to sustain operations and capital projects over the coming quarters.

Operational Progress at Stanbridge

Construction at MCA's Stanbridge site remains on track for completion in the March 2025 quarter. The site will feature 78 free-range grow-out ponds across six cells, designed to accommodate the natural topography and support a holding capacity exceeding 3.5 million fish. Notably, cells 1, 2, and 3 are fully stocked, with fish adapting well to the transition from juvenile pens to free-range ponds.

Stocking of cell 6 is underway, while cells 4 and 5 are slated for spring and summer 2025. The availability of these ponds ahead of schedule is expected to significantly enhance biomass growth during the peak growing months from January to April.

Biomass Growth and Sales Strategy

MCA continues to execute its long-term biomass growth strategy with encouraging results. The average sale weight of fish has increased by 29% year-on-year to approximately 1.6 kilograms, driven by a deliberate shift towards processed sales and a reduction in live fish sales. Larger fish (2.5kg+) inventories have improved, supported by enhanced feeding protocols and selective market restrictions on smaller fish.

This approach is designed to maximise economic returns, as larger fish command a premium price, $27 per kilogram domestically and about 20% higher internationally. The company anticipates gradually increasing the availability of larger fish to both domestic and export markets as inventory permits.

Market Expansion and Export Developments

During the December 2024 quarter, MCA commenced distribution to Thailand, expanding its footprint in Southeast Asia where it already serves markets including Singapore, Malaysia, Indonesia, the Philippines, Vietnam, and Hong Kong. Discussions have also begun regarding entry into the Chinese market, with MCA's facilities now registered to export food products to the region. Approval for processed Aquna cod products in China is expected by mid-2025.

Domestically, processed fish sales increased by 26% compared to the prior year, while live fish sales declined by 37% as the company focuses on growing fish to larger sizes. Sales to supermarkets remain limited due to supply constraints, with products available only in select Woolworths stores.

Strategic Property Acquisition

In a move to support future expansion, MCA acquired a 10.15-hectare irrigated property adjoining its existing Bilbul site near Griffith, NSW, for $1 million. This acquisition includes a residence and shedding, providing additional capacity for operational growth and infrastructure development.

Outlook and Management Commentary

The company reported an excellent spawning season in 2024, with a 20% increase in spawning numbers compared to 2023, underpinning future biomass growth. New broodstock from the CSIRO breeding program are expected to contribute further to spawning success in 2025.

Management expressed satisfaction with the quarter’s operational progress and market development, emphasizing prudent capital management and a continued focus on expanding sales channels and biomass growth. The next update on biomass growth is anticipated with the first half results.