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China Green Agriculture Inc T.CGA


Primary Symbol: CGA

China Green Agriculture, Inc. is engaged in the research, development, production and sale of various types of fertilizers and agricultural products in the People's Republic of China (PRC) through its Chinese subsidiaries, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. (Jinong) and Beijing Gufeng Chemical Products Co., Ltd. (Gufeng), and its variable interest entity (VIE), Xi'an Hu County Yuxing Agriculture Technology Development Co., Ltd. (Yuxing). The Company's segments include Jinong (fertilizer production), Gufeng (fertilizer production) and Yuxing (agricultural products production). The Company's primary business is of fertilizer products, specifically humic acid-based compound fertilizer produced through Jinong, and compound fertilizer, blended fertilizer, organic compound fertilizer, slow-release fertilizers, water-soluble fertilizers and mixed organic-inorganic compound fertilizer produced through Gufeng.


NYSE:CGA - Post by User

Comment by taylor1988on Oct 12, 2011 5:26pm
171 Views
Post# 19143130

RE: Toot my own horn

RE: Toot my own hornCGA is definitely cheap in here but certainly not the cheapest mid producer in the world. They've got over 100,000 ounces hedged at less than $850 / oz for next year which will impact their cash flow considerably with $700 cash costs after taxes. In addition they're not in a superior mining friendly jurisdiction which can explain the apparent discount to other mid cap producers. CGA is a great company with a nice production profile but until they complete their expansion to 300,000 ozs / yr and burn through the 100,000 ozs hedged at < $850 / oz, I don't see a significant re-valuation coming yet. If you think CGA is cheap look at GBG in here. They have 28 M ozs of gold compared to CGA's 10 M ozs. Their grades are 5 + g/t au in Africa and 30 + g/t au in Nevada (both better mining jurisdictions) and are also slated to be a 200k oz producer for next year but with no hedging. Both have the same market cap. I like CGA but you need to shop around a little if you've determined this is 'the cheapest in the world'.
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