Consumer Staples
Australian Agricultural Projects Limited (AAP)
Australian Agricultural Projects Ltd is an agribusiness company focused on the management and operation of olive groves in Victoria, Australia. The company's primary activities involve the harvesting and processing of olives to produce premium extra virgin olive oil for both domestic and international markets. Additionally, AAP provides horticultural management and consulting services for its own and third-party agricultural assets.
Market Cap
A$17M
Shares on Issue
N/A
Price Chart
AI Analysis
As a micro-cap entity with a market capitalisation of A$17M, Australian Agricultural Projects' performance is intrinsically tied to the cyclical nature of agriculture. The company's recent financial results are heavily dependent on the success of its annual olive harvest, influenced by factors such as water availability, seasonal weather conditions, and operational efficiency at its Victorian groves. Key performance indicators for investors include harvest tonnage, oil yield per tonne, and the average sale price achieved for its extra virgin olive oil, alongside revenue generated from its asset management services.
AAP's growth outlook hinges on its ability to increase production yields and secure favourable pricing in a competitive market. Key catalysts include potential new supply agreements with major domestic retailers or entry into lucrative export markets, particularly in Asia where demand for premium Australian produce is strong. Strategically, the company is likely focused on optimising grove management practices to mitigate climate-related risks and improving its cost structure to enhance profitability from its core olive oil production business.
Bull Case
- • A significant increase in global olive oil prices, often driven by poor harvests in Europe, could lead to substantially higher revenue and margins for AAP's production.
- • Successful implementation of yield-enhancing agricultural technology or securing new, high-margin asset management contracts could significantly boost profitability.
- • The signing of a major new distribution agreement with a national supermarket chain or an international exporter would provide a step-change in sales volume and revenue.
Bear Case
- • High susceptibility to adverse climatic events in Victoria, such as drought, frost, or bushfires, which could severely damage or destroy a harvest and cripple annual earnings.
- • As a micro-cap stock, AAP suffers from low liquidity, making its share price highly volatile and posing a significant risk for investors trying to enter or exit positions.
- • The company has significant concentration risk, with its fortunes heavily reliant on a single agricultural asset and commodity, making it vulnerable to localised operational issues or a downturn in olive oil prices.
Recent Announcements
Quarterly Update and Appendix 4C - December 2025
🚨 Price SensitiveAAP's quarterly update for December 2decade, with a focus on commitments test entity reporting as detailed in appendix 4C.
FAQs
What does AAP do?
Australian Agricultural Projects manages olive groves in Victoria, where it harvests olives to produce and sell premium extra virgin olive oil. The company also earns fees by providing horticultural management services for agricultural assets.
Is AAP a good investment?
AAP is a speculative, high-risk investment typical of a micro-cap agricultural company. The potential for reward is tied to strong harvests and high commodity prices, but this is balanced by significant risks from adverse weather, operational challenges, and share price volatility.
What drives AAP's share price?
Key drivers include the success and volume of its annual olive harvest, global and domestic olive oil price movements, climate conditions in Victoria, and announcements regarding new sales agreements or operational milestones.
Key Metrics
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