Uruguay project needs $84m

NZ Farming Systems Uruguay needs to raise about US$60 million ($84.6 million) to complete the development of the company, says chairman John Parker.

The company was set up to develop dairy-farm operations in Uruguay and floated on the NZX in 2007.

NZ Farming Systems was looking at selling farms which were largely undeveloped and had sold one for about US$8 million, Parker said.

"We have other farm sales in prospect and we can sell those farms profitability compared to what we've paid for them."

The company had the ability to take on another bond issue in Uruguay.

"We've said that'll be about another US$30 million," he said. "We just have to decide whether to pick it up. So it still leaves a bit of a gap but not major."

The company would probably go for the Uruguay bond issue but there was no timeframe, Parker said.

"It leaves a number of possibilities of equity raising in New Zealand, or elsewhere, or from current shareholders, new shareholders, etc."

The US$60 million would be enough to take the company through to completion, he said.

In a market update in May the company confirmed a projected earnings before interest and tax loss of a maximum US$10 million for the fiscal year.