$5.73 million cash remains as Terragen advances feedlot expansion

10,600-Cattle Trial Moves Towards Final Results

Terragen Holdings Limited (ASX:TGH) has moved its flagship feedlot program into its decisive phase, with all 10,600 cattle inducted into the Mort & Co trial at the Grassdale Feedlot by August. The animals are scheduled to exit for processing from October, with the animal component due to conclude in December and an independent final report expected in March 2027.

The trial is externally funded for up to $2.8 million by Meat & Livestock Australia Donor Company and is testing Terragen Probiotic Ultra for Ruminants under the company’s supply agreement with Mort & Co. Any long-term supply contract remains dependent on the trial’s completion; Terragen said it will update the market if such an agreement is executed. The program was announced alongside the Mort and Co feedlot trial, which was described at the time as a large-scale test of the probiotic’s cattle performance.

Brazilian Approval Opens Another Market Access Route

Terragen received approval from Brazil’s Ministry of Agriculture for Terragen Probiotic as a feed additive during the quarter. Regulatory and market-access work also continued in the United States, Canada and Brazil, alongside efforts to scale and optimise production of the probiotic strain in North America.

Closer to home, the Ravensworth Feedlot agreement remains conditional on installation and automation of a Terragen dispenser and completion of the feedlot’s planned expansion. Fabrication began during the quarter, with installation targeted for late 2026 and first deliveries still expected before the end of the calendar year. The arrangement was part of the Ravensworth supply agreement, previously described as Terragen’s first large-scale supply deal.

Receipts Slide as Terragen Broadens Beyond Dairy

The commercial picture is less settled than the trial pipeline. Customer receipts dropped to $255,000 from $382,000 in the previous quarter, as a sharper-than-expected downturn in dairy and slower adoption by larger feedlots weighed on sales. Receipts were still $88,000, or 53%, above the prior corresponding quarter, according to the company.

Terragen used $1.45 million in operating cash during the quarter and spent a further $32,000 on investing activities and $46,000 on lease and hire-purchase repayments. Cash and cash equivalents stood at $5.73 million at 30 September, down from $7.25 million three months earlier. Based on the quarter’s operating cash use, the Appendix 4C indicates about four quarters of available funding, although that calculation is a mechanical estimate and may change with receipts, spending and commercial progress.

CEO Exit Adds Execution Risk to the Commercialisation Push

Terragen’s leadership changed rapidly after the quarter ended. Dr Michele Allan resigned as chair and director on 16 October, Richard Norton resigned as CEO on 28 October, and Dr Joss West became interim CEO the following day. Paul Whimp took over as non-executive chair on 30 October, while CFO Daniel Pearce withdrew his resignation and remains in the role.

Other research programs continue in parallel. Greenhouse and field trials under the nitrogen-use efficiency project are running at QUT’s Redlands campus and the Tosari Crop Research Centre, with outcomes expected in early 2027. Five winter crop trial sites across Victoria, New South Wales, South Australia and Western Australia are due for harvest between November and January, with results expected in March 2027. Those results, alongside the feedlot reports and Ravensworth deliveries, will test whether Terragen’s expanding pipeline can translate into more dependable customer receipts before its current cash estimate tightens.