ASX:TGH
Terragen Holdings Ltd
Investment Summary
The fund managers believe that Terragen Holdings Ltd (TGH) is poised for significant commercial success, bolstered by recent research outcomes from the Department of Energy, Environment and Climate Action (DEECA) demonstrating that lambs supplemented with dry MYLO® showed an average daily weight gain of ~25% higher and produced ~10% less methane compared to controls. In their opinion, the decision to extend MYLO trials to larger lamb and cattle populations reflects the company's growing confidence in its product's efficacy. Additionally, TGH's recent capital raise of $4.75m aims to enhance R&D and accelerate global commercialization. The positive results from the beef feedlot trial indicated that the Dry Probiotic 2x dose achieved an average weight gain of +8.8 kilograms over controls and demonstrated strong feed conversion trends. TGH’s upcoming Dry Probiotic launch in March 2025 further underscores their potential to capture market share while addressing methane emissions in livestock, positioning the company favorably against competitors.
Commentary From The Managers
Saville Capital
31 Dec 2024
$0.04
- Saville Capital participated in TGH's placement and entitlement offer, raising $4.75m.
- Funds will support ongoing scientific research and development, accelerate global commercialisation opportunities, and assist with working capital.
- TGH published results from a beef feedlot trial testing their dry ruminant probiotic feed supplement.
- Trial involved 264 Angus steers with varying doses and a control group.
- Key results showed Dry Probiotic 2x dose resulted in +8.8 kg heavier exit live weight and 4.6% higher average daily weight gain than control.
- Significant numerical trend in Feed Conversion Ratio (FCR) favoring probiotics; Dry Probiotic 1x dose achieved 12.8% better FCR vs control.
- Dry Probiotic 2x dose yielded a 4.73x net carcass value return on investment.
- A $48.64 per tonne saving was achieved with probiotic treatment based on average ration cost.
- Probiotic groups surpassed control in metrics like carcass weight, yield percentage per carcass, and carcass value.
- Results support prior evidence of productivity gains in feedlot lambs and increased cow milk production.
- TGH's Dry Probiotic is set for commercial launch in March 2025 in Australia.
Saville Capital
31 Aug 2024
$0.04
- Saville Capital updates on TGH’s progress in addressing methane emissions in livestock.
- TGH has announced results from the DEECA-led research at Hamilton Smart Farm, demonstrating key findings in methane mitigation.
- Lambs supplemented with dry MYLO® experienced an average daily weight gain of approximately 25% higher than those without the supplement.
- These lambs produced around 10% less methane compared to the control group.
- Given these promising results, TGH is expanding the dry MYLO trial to a larger sample of lambs and into cattle.
- Despite past challenges in commercialisation due to scale and liquid formulation issues, TGH's shift to a dry formulation and new focus on commercial partnerships is seen positively.
- Saville Capital believes this strategy could lead TGH towards significant commercial success.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.