ASX:TGH
Terragen Holdings Ltd
Investment Summary
The fund managers believe that Terragen Holdings Ltd (TGH) is positioning itself for significant growth and commercial viability, particularly following recent developments in its scientific trials and product offerings. In their opinion, the successful results from the beef feedlot trial indicate the potential efficacy of TGH's dry ruminant probiotic feed supplements. The impressive performance metrics, especially the increased weight gains and favorable feed conversion ratios observed in both the beef and lamb trials, strengthen the case for their products within the livestock industry. Furthermore, the announcement of the dry formulation of MYLO® and its subsequent positive impact on weight gain and methane reduction in lambs emphasize TGH's role in addressing important environmental concerns, which enhances its attractiveness to potential investors and partners.
The fund managers acknowledge the challenges TGH has faced in commercializing its products, particularly due to previous limitations with liquid formulas. However, they are optimistic that the pivot towards a dry formulation and a focus on forming commercial partnerships rather than direct farm sales will allow TGH to overcome these hurdles. The capital raised from the recent placement and entitlement offer is seen as crucial for supporting ongoing research and development, which they believe will foster the global commercialization efforts of TGH's products. With the anticipated launch of the Dry Probiotic in March 2025, the fund managers are increasingly confident that TGH is on the brink of achieving significant commercial success and improving its market presence in the agricultural sector. Overall, they maintain a positive outlook on TGH's future prospects based on current performance indicators and strategic initiatives.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Manager
Saville Capital
Date
31 Aug 2024
Price
$0.04
Medium
Monthly Report
Commentary
Saville Capital Emerging Companies Fund updates its investment thesis on Terragen Holdings Ltd in light of promising research outcomes from the Department of Energy, Environment and Climate Action at the Hamilton Smart Farm. The trials demonstrated that lambs supplemented with the dry formulation of MYLO® achieved approximately 25% higher average daily weight gains and produced around 10% less methane compared to controls. These significant results have prompted TGH to expand the MYLO trial to a larger lamb sample and cattle. Despite past commercialization challenges tied to scale and the prior liquid formula, the shift towards a dry formulation and a renewed focus on commercial partnerships rather than direct farm sales bolsters confidence in TGH's potential for meaningful commercial success.
Saville Capital
Date
31 Dec 2024
Price
$0.04
Medium
Monthly Report
Commentary
Saville Capital Emerging Companies Fund continues to hold its position in Terragen Holdings Ltd (TGH) following a successful placement and entitlement offer that raised $4.75 million. The funds will support ongoing scientific research, accelerate global commercialization efforts, and bolster working capital. TGH recently published promising results from a beef feedlot trial using its dry ruminant probiotic feed supplement, which significantly outperformed control groups in key performance metrics such as exit live weight and average daily weight gain. The Dry Probiotic 2x dose resulted in an impressive +8.8 kg higher exit weight compared to the control, and improved feed conversion ratios were observed across all probiotic treatments. Additionally, the probiotic groups demonstrated superior results in crucial carcass metrics and projected substantial cost savings on feed. These findings align with existing peer-reviewed evidence supporting TGH's probiotics, which have previously shown productivity gains in lambs and enhanced milk production in cows. With the anticipated launch of the Dry Probiotic set for March 2025, TGH is well-positioned for future growth in the market.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.