Namoi Cotton gins and markets the cotton from western NSW and southern Queensland. The company benefits from the rapidly rising price of cotton as well as good harvests in the areas that it serves, which is expected to be reflected in the result for the year to February 2022. A good year for the Australian cotton industry sees 4 million bales harvested whereas the drought-impacted 2020 saw only 600,000.
Namoi’s capital raising at 34 cents per share in May 2021 improved the balance sheet and the company is headed for a good year. However, the stock continues to trade well below its Net Asset Value of around 68 cents per share.