Cresud SACIF y A (CRESY) 2004 Q2 法說會逐字稿

(BEGINS 5 MINUTES IN PROGRESS) ...500 Milking (ph) and that is because of cost - low cost and not a very high price like having like 15 cents or 20 cents a liter making it very product suitable and we see in our numbers how profitable it is in Milking for this year.

About the investments of the year, we think that it's because of the asset value and it's something that is hidden, our country are very, very expensive today. And maybe we can be paying cost (ph) because of the - that we are the (INAUDIBLE) of it for other times.

And the assets are really very expensive and that is making us to be investing in the non-reserve mainly.

And that is why we are finishing our project in our reassembly trying to achieve 4,500 hectares, under irrigation at the end of 2004, or beginning of 2005. And trying to continue growing it in the quarters financially like more than 30,000. But remember that that project is more than 200,000 hectares.

So we are investing in those lands we had bought in the past. And we think that it's the time today to driven (ph) the production.

In the brief I told you about the growth from 500 (INAUDIBLE) is continuing to growing. It's still very big, the gap compared to the developed countries in the value kilogram of wheat. And so we think that the sown (ph) hectares for next year will be big too.

We are thinking of having more of the owned because we are putting all our production and we have pace like 20,000 hectares on this production. And we are thinking of leasing more aggressively than last year.

And so we think that next quarter and next semester we'll show very positive margins and our growth for long-term will be more in long reserves (ph) and looking for more margin leverage.

So the overall is (INAUDIBLE) today, is moving the country, is making a lot of free cash flow and the farmers are really spending very good time (ph) after savings, crossing 100 percent solution. This is more than $200 per ton of savings for the producers. And that is more than the last year economy of the country with a very (INAUDIBLE) market.

And Cresud is still the largest player and after she (ph) will put all its large reserves on the production will be very big, comparing to the highest. Today is in the Europe (INAUDIBLE) and that is taking part of the benefit, but we'll continue taking more after putting more land under production.

So this is a small explanation. If you have questions, I will like to hear it please.

Thank you. The floor is now open for questions. If you do have a question, please press the numbers 1 followed by 4 on your touch-tone telephones at this time.

Once again, the floor is open for questions. If you do have a question, please press the numbers 1 followed by 4 on your touch-tone telephone at this time.

We do have a question coming from Paul Lahoe (ph).

Yes. My question is, does the harvest this year, that's coming in the next couple of months, look like a good harvest in Argentina? And will Cresud benefit from that good harvest of soybeans at a time when soybean prices are high?

Yes, Cresud is going to harvest like 20,000 - 20 something thousand tons. It - the crop is coming very well. That is coming - mainly in the fourth quarter and the country is going to harvest like 35 - 37,000,000 tons. And really very - the record will be the story of South America and possibly the same part of (INAUDIBLE).

Thank you.

Thank you. Once again, the floor is open for questions. If you do have a question, please press numbers 1 followed by 4 on your touch-tone telephone at this time.

Mr. Elsztain, there appear to be no further questions at this time, sir.

I would like to add to the quarterly part, quickly. One, we have received conversions. So, we receive conversions of like 5,000,000 of the debt - for the use of debt of the convertible bond. And we haven't attached the converted (INAUDIBLE) so we have today, only big (INAUDIBLE). And $6,400,000 of those warrants. And that was basically (ph) how I got the year (ph) of debt and improved the liquidity of the company by having (INAUDIBLE).

And apart of that, we grew in size to a developed company. We improved the capacity of the actual Feed Lot but it made it into very positive cash flows. It's making like $700,000 a year, when we invested in that like 3,000,000. So, a very good return.

We are thinking of launching the second one. And now, we are the deciding the place, where to put it. And separate the one that exists today.

Probably the company will grow to a bigger company of developed - the country, too.

So, we think that the (INAUDIBLE) board will be very, very positive looking forward.

Thank you for being in the conference. We'll see you in next quarter. Bye. Thank you.

Thank you. This does - concludes today's teleconference. You may disconnect your lines at this time. And have a wonderful day.