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No. of Recommendations: 1
I'm becoming increasingly interested in ATP and thought I would have a bit of look around for positives and
negatives. Found a little bit. Not in any particular order.
I like the yield and I like the growth potential. If the growth runs out or is capped for management reasons
then the yield will go even higher. There are obvious risks but I like the numbers and management noises.
I would like to see another farm in another area to split the geographical/political risk. That might come as
they grow or it might not.
Personally I wouldn't make it 30% of the portfolio initially but would be quite comfortable up to 15%.
If it naturally grew to 30% then so be it. Really though that will depend on each individuals risk profile
and tolerance.
Sorry but it's quite a long post.
By the way, I bought today at 43 cents.

Political risk is hard to evaluate. I view relations between the company and locals as very important in
this regard.

Economic risk.
World sinks deeper and deeper into recession affecting the price of all luxuries. No idea.
Currency risk.
Australian dollar appreciates against the yen. Maybe, maybe not. The economists can't predict it so
no point worrying about it. The company does engage currency hedging but not sure what the current
setup is.

Possible future pollution and theft sources through increased population?
But then again if that happened there a thousand other places in Indo they could go.
There is also oil in the general area. Not sure how close.
There is oil in the west and nickel and cobalt on Waigeo Island.
Indonesia Proposed launch site: Baik or Waigeo islands.
Rockets: U.S. and Russian.
History: In the 1970s, Indonesia became the first Asian nation to operate its own network of communication satellites.
Overview: As the fifth most populous country in the world, Indonesia relies heavily on communication
satellites to link 206 million people scattered across 17,000 islands. Those satellites now are launched
by U.S. and European companies. For that reason, the government is studying the possibility of building
its own complex to launch the spacecraft.

Recently there have been reports that Indonesia was considering the construction of a launch site in the
Biak or Waigeo Islands. The site would be designed to operate ELV's, especially the Russian Proton.
Since the late 1980's Russia has been seeking a low latitude loaction for commercial Proton operations. The Indonesia reports appear to be the latest attempt to find a more suitable site for Proton operations.
Given the current economic crisis in Indonesia its unlikely that this proposed spaceport will move beyond
the discussion stage in the near future.
Although Indonesia may have a legitimate concern with the safety of Australian launches, there is
a deeper reason for Jakarta to question the nearby launch facility: competition.

Indonesia relies heavily on satellite communications to connect the 17,000 islands that form the archipelago
nation. Over time, Jakarta wants to develop its own satellite launch capabilities, thus providing more
domestic security to its satellite program and potentially lowering the cost of launches.

At least three areas in Indonesia have been cited as potential launch sites: Lembe Island on the northern
tip of Sulawesi, Waigeo and Biak in the eastern province of Irian Jaya and West Papua. All of these sites
lie significantly closer to the equator than Australia's proposed Christmas Island site, making them more
efficient for launching communication satellites.

Independent research (a bit dated).
Excellent returns. Good decisions. Apparently Good management.
9. Atlas Pacific
Started: In 1993, when the listed mining company Atlas Pacific Gold switched to pearl farming, which
is a more exciting and romantic industry, according to its managing director Joseph Taylor. The company
acquired an interest in a pearling project at Kupang in West Timor after a capital raising of $1.5 million
in 1993.
Strategy: To have operations based in Indonesia. Taylor says costs are lower there because of cheaper
infrastructure and labor.
Edge: Pearling in Australian waters is a closed industry. The only way to enter the market is to buy a
licence from an existing operator or establish operations overseas. There are no such restrictions
in Indonesia.
Result: The company turned over $7.3 million in 2000-01, up from $3.8 million in 1997-98. It recorded
a pre-tax profit of $3.1 million in the six months to June 30 this year on revenue of $5.6 million, compared
with a $2 million net profit and revenue of $4.5 million in the six months to June 30, 2000. Taylor expects
to harvest about 80,000 oysters this year and 100,000 by 2003.
Smartest move: To begin moving its Indonesian operations from Kupang to Waigeo Island, just off the
coast of Irian Jaya, in 1997. Concern about the worsening political situation in East Timor and subsequent
security concerns in West Timor forced the company to speed up its move, which was completed in 1999.
Taylor says the new site is enormous and more secure than Kupang. "It was definitely the right move."
Atlas Pacific expects future to be a real pearler
March 29, 2001
Perth based pearl farming company, Atlas Pacific (ATP) announced late yesterday its projected
earnings for the next four years ending December 2004.

The company has projected revenues for 2001 based on the number of nucleated oysters which have
been x-rayed as containing a pearl.

The revenue projections for 2002 are based on the number of oysters nucleated in 2000. The for
2003 are based on a projected 150,000 oysters being nucleated in 2001.

The 2004 income is based on nucleating 150,000 oysters in 2002. These oysters are located at the
Waigeo site for this purpose and, according to the company, are in good health.

The company made it clear in its announcement that pearl prices are subject to a large number of
variables including average size, shape profile, colour, lustre, skin quality, market conditions and
exchange rate.

Price levels have been experiencing downward pressure over the last few years and this trend may

The company conceded that due to the number of variables which can influence the revenue forecasts
it is probable that the actual revenues achieved will differ from the projections and may be up to
30% above or below forecast.

Expenditure of both a capital and operating nature can generally be forecast with a higher degree of
reliability than income estimates.

It is expected that the actual expenditures are likely to be within 10% of projection.

As with any aquaculture project and, in particular one located in Indonesia, there are a considerable
number of factors that present a risk of projections not being achieved and while every attempt is
made to manage these risks, some are beyond management's control.

These include sovereign issues in Indonesia, which is experiencing social and economic disruption. A
direct consequence of this is theft and vandalism which pose a security challenge for all pearl farmers
in the country.

The company has projected net profits to increase from $2.5 million on 2001 to $7.7 million in 2004.
Earnings per share is predicted to change from 4.5c in 2000 to an expected 10c in 2001.

At the close of trade yesterday, Atlas Pacific shares were 2c higher at 20c.

Criminal Risk.
In the early hours of the morning on October 25 last year the tranquillity of tiny Waigeo Island in
West Papua, was shattered by gunfire. A boatload of thieves raiding a pearl farm shot and killed the
Indonesian manager, and wounded another worker.
Several thousand kilometres away in Perth, Western Australia, the company that owns the pearl hatchery,
Atlas Pacific, was devastated. "We considered giving up," says managing director, Lucien Peterson.
"It was the second attack in three days, although on the other occasion, they were only armed with
machetes. We decided to carry on with security doubled and Indonesian police and soldiers in

Possible protection of the environment by government measures?
This could be a plus or a minus. Protection would be good unless they feel they need
to curb ATPs activities.
June 6, 2002
An opportunistic survey of Mount Nok [00°04'54'S; 130°45'17'E] - located on the far eastern side of
Waigeo's Majalibit Bay - undertaken this May month by Iwein Mauro, resulted in the first observations in
the wild of the virtually unknown Bruijn's Brush-turkey. This megapode (or incubatorbird), the most
enigmatic and sought-after bird species in the New Guinea region, is on present knowledge confined to the
large landbridge island of Waigeo at the northern extremity of the Raja Ampat archipelago of Indonesia's
easternmost Papua (formerly Irian Jaya) province. ......................
All these scientific experts agree that Raja Ampet is the best marine area in Indonesia and that
the area needs good management to avoid damage to this environment from pollution, bombing,
and other sea damage. The experts have also stated that the islands should be proposed for a
World Heritage Site. This has already been proposed and recommended to the Indonesian government
and global community. The scientists also worry about the massive illegal cutting and fish bombing in
the area of West Waigeo, in the Raja Ampat Islands. The people depend on the rich marine biodiversity
found there

Company appears to be making a lot of the right noises.
Shareholder Update No. 20
JUNE 2002
Dear Shareholder,
This year - some 105,000 oysters have been nucleated and a further 50,000-60,000 that have been targeted
from our 2000-01 hatchery output are already being transferred in preparation for pre-operation
conditioning. This plus re-operation of some of this year's harvest should see the total seeding programme
exceed 220,000 by the end of the year.
We are currently completing our second harvest of the year and all hands are busy. It will be the largest
single harvest that the company has carried out to date, with over 33,000 oysters to be processed. It is
expected that the pearls from this harvest, after sorting and processing, will be presented at Pearlautore's
August auction in Sydney. We are encouraged by reports from Hong Kong that recent sales have indicated
higher average pearl prices than those of last year.
Our programme of local technician training continues. This highly successful departure from the practice of
using highly-paid technicians from Japan has gathered strength over the past three years until we now have
10 Indonesian technicians operating for us. Of these, three are at present temporarily in Australia, operating
for Arrow Pearls in Beagle Bay as part of our on-going arrangement with that company. A further two,
assisted by Joseph Taylor our CEO, have been in Myanmar, operating on contract to Atlantic Myanmar,
an Australian owned company that has been developing a pearl farm in the Mergui Archipelago on the
Myanmar coast south of Yangon since 1998. Currently they are back in Alyui helping with our harvest but
will return to Myanmar in July for another period of about two weeks.
I have previously mentioned our disappointing hatchery results, thought to be due to environmental factors,
and the measures that we have taken to ensure that our shell numbers in the immediate future are not
adversely affected. The program to stock our farm with oyster spat from other regions of Indonesia
continues to ensure that our oyster supplies are sufficient for future nucleations. Conditions in the Alyui Bay
region appear to be improving and some small numbers of spat have now being produced from our
Our ships have been very busy transferring oysters under arrangements that had previously been made with
two other Indonesian farms, bringing oysters from farms in Seram and Togian to our own farm at Alyui
and transferring oysters for another Indonesian pearl farmer from their farm at Togian to their other sites
in Sulawesi and the Moluccas. Togian is an island in Tomini Bay in Central Sulawesi and the Seram farm
is at Ambon on the island of Seram in the Moluccas. The D'Entrecasteau is now back on logistic work for
our farm, transferring fuel, provisions and persons from Sorong to Alyui.
We have experienced growout difficulties with some of our juveniles in particular and are concentrating on
opening up new areas in the bay to offer slightly different habitats. We are hopeful that these areas will be
more conducive to initial growth.
Arranging joint operations of one kind and another with other farms in different areas and lending expert
staff to other farmers who have a need for them at the time and providing logistic resources with our boats
has meant that this quarter has been a very busy one indeed. The Board is appreciative of the commitment
shown by our on-site staff.
Our CEO, Joseph Taylor and Operations Manager, Jens Knauer, attended the World Aquaculture Society
meeting held in Beijing, China, in February of this year. Four research papers were given by your company's
representatives. The good reception given to the papers and the favourable impression they created resulted
in Joseph and Jens being invited to visit the pearl-growing region of Hainan Island in the South China Sea.
We are now hoping to embark on a series of collaborative research programmes focusing on the nature of
pearl colouration which we hope will in time greatly assist in our selective breeding programme.
Anne Lee, Jens's wife, and company PhD student, received an award at the conference for her poster
presentation concerning environmental influences on pearl oyster growth and survival.
Staff on site have had a busy period in the past three months. David Schonell, our Project Manager, has
continued keeping the Alyui project on track while some of staff have been seconded to other ventures.
Our new trainee farm manager, Marie-Lise Schlappy has now settled in and knows what it is like to work
on a busy pearl farm. Marie-Lise's main duties are in growout of oysters. Jason Parsons is abroad on leave
and is not expected to resume his duties on site until July 17. Jens Knauer has returned from Seram and is
now busily overseeing the current harvest and operations. Kate Simpson, our hatchery manager, has
returned from Togian where, for three months, she has been supervising the hatchery of another pearling
venture, in a deal which saw us sharing the spat that were produced in that time. David Ramsay, who is in
charge of the Sorong office and is normally located in Sorong is currently on site supervising security during
the harvest. Daniel Bradbury, our Community Relations Officer responsible for liaising with the Indonesian
workers and villagers has just returned from leave in Melbourne. Ryan Arnup, our Mechanical Engineer and
Terry Rout, our Electrical Engineer are both on site helping with logistical support at harvest time as well as
doing their own jobs.
From the Fremantle office, Brian Hardi, our Accountant, has spent three periods in Sorong this year in
January, March and May, working with our Indonesian bookkeepers to facilitate the implementation of new
accounting methods and providing training in the use of the new accounting system. Kylie Davies, our
Office Administrator, spent a week of practical experience at the Arrow pearl farm in May at Beagle Bay,
near Broome. She is currently in Waigeo familiarising herself with the total pearling operation and assisting
in the current pearl harvest.
On April 26, the company paid its second dividend of two cents per share, franked to one cent. The total
payment amounted to $1,650,274.
In the last shareholder update I mentioned that we were in a sound cash position and ready to move in
various directions should opportunities present themselves. Since then we have concluded several
agreements and memoranda of understanding which will give us greater flexibility in our pearling
We have concluded a MOU with a company called Mutiara Laut Selatan which has a pearl hatchery on the
north western tip of the island of Bali. We shall provide hatchery/laboratory equipment, experienced
technical support, training in hatchery management and assistance in the re-design and refurbishment of the
existing facility. In return, we will own 50% of the spat produced from the hatchery. This will give us a
valuable source of spat for our own use or for sale.
As previously mentioned in another context, we have signed a contract with Atlantic Limited for three Atlas
technicians to carry out pearl seeding at their pearl farm in Myanmar. It is anticipated that more than 15,000
oysters will be seeded in these two sessions.
These arrangements are in addition to those mentioned above with two other pearl farms regarding the
transport of oysters to and from Togian and Seram and the swap of technical skills for spat at the hatchery
in Togian.
So our sphere of operations in Indonesia and elsewhere is widening and providing geographical and
corporate diversity which we feel will be to the benefit of the company in the future. In all of these
arrangements – and there are others in the wings - is the possibility of extensions when the various contracts
The company held its AGM in May, shareholders approving without any contrary vote all the resolutions put
forward. After the meeting the CEO gave a presentation which was well accepted by the shareholders
present and provoked many subsequent questions. It provided a diagrammatic and photographic story of
the development of the company and it current operations at Waigeo.
The corporate video, which was mentioned in the last Update was sold to shareholders at $15 (plus GST)
and has proved very popular indeed. Many shareholders have phoned in congratulating the company on its
production. Some 115 copies have now been sold to shareholders. Some videos are still left and are
available to those who want them.
Our shareholder pearl purchase arrangements are still in place for those who are interested. Like the video,
we have had many favourable comments from shareholders who have bought the pearls.
We are continuing with a positive promotional programme. Joseph Taylor recently appeared on CBNC's
Australian Business Centre Programme and also the Sky Network's Business Programme Hosted by David
Alex Kerr
30th June, 2002

Profit downgrade. I see it as a positive.
Profit Forecast

ATLAS PACIFIC LIMITED 2002-07-02 ASX-SIGNAL-G HOMEX - Perth +++++++++++++++++++++++++ Further to an announcement made by the company
on the 6th December 2001 regarding the earnings projections of the
company, we would like to advise some revisions to this forecast. The
Company previously forecast a net profit for the financial year ended
31 st December 2002 of $6,372,000. Our revised forecasts show that the
net profit after tax will be $5,050,000 which is a 21% decrease from the
previous projection. This is explained mainly by the decrease from
77,200 to 62,500 in the number of saleable pearls that will be available
for auction this year. This change is because a large number of pearls
being harvested late this year will be sold in early 2003. The decision
to decrease the number of pearls harvested in time for sale this year
has been made in order to add value to these pearls through increased
size and also to conform to our plan to develop value adding through
selling more of our pearls as matching strands rather than loose lots.
Selling pearls at the beginning of the year when supply is traditionally
low is expected to advantage the company. This delay in harvesting will
not adversely effect cash flow for existing business activity and the
decrease in profit projection is a function of timing difference rather
than decreased production through any adverse events. There is likely
to be a small effect from the adverse movement in the A$ against the
Japanese Yen this year but the effect of this will have a greater impact
in 2003 if the A$ continues to strengthen against the Japanese Yen. The
impact of this and other variances in production schedules cannot be
determined with any certainty at this point. A revised forecast for 2003
and beyond will be provided later in the year. The caveats which
accompanied the forecast announcement in December 2002 remain in force
for this profit projection. A Kerr CHAIRMAN


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