2023
Fiscal Year Report
July 1, 2022 – June 30, 2023
Dear Investor,
The fiscal year for cattle ranching ended on June 30th, 2023. This report includes a summary of our activities a La Pradera, as well as the relevant advances for the Finka Token. Most importantly, this report highlights the NOR generation on behalf of our token-holders for the fourth consecutive year, effectively delivering on our promises with solid fundamentals and tangible results. The 2023 NOR of CHF 0.0345 per token represents a return of 3.35 % pa
La Pradera
The cattle operations registered the weaning of 714 calves during 2023, consistent with the yield per hectare of grass. The herd management was a challenge under very dry conditions during the year, but thankfully, our previous infrastructure improvements and paddock subdivisions allowed for effective herd rotation and efficient grass consumption. While we mitigated the effects of the drought, our animal nutrition costs increased slightly as compared to the previous year.
The Brangus herd improvement at La Pradera in agreement with Tres Cruces, the leading Brangus breed producer in Argentina was a success and we welcomed 27 Brangus calves last September. Our Brangus program was further recognized when we obtained the highest price per Kg during the Brangus auction (see video) in the month of April and we were awarded a prize of 50 embryos to continue with our plans.
La Pradera maintained its certification as an Export Certified Ranch in compliance to all the sanitary requirements and inspections by the relevant authorities. Furthermore, in compliance of the sanitary policies for the prevention for Foot and Mouth Disease (FMD) and for Bovine Spongiform Encephalopathy (BSE), all our cattle transactions and animal transfers are individually registered and approved, without exception.
In line with our corporate policies, we are pleased to report that our operations are fully compliant to the highest ESG standards. Environmentally, we rely on naturally grown grass, we only use natural water sources and our free-range animals feed only on natural grass off the ground. Except for the vaccines required in compliance to sanitary regulations, our herd receives no feed supplements nor antibiotics or any other growth stimulants. As we improve our ranching operations, our infrastructure is increasingly powered by solar energy.
A transition to agriculture on half of the property was initiated, with the aim of increasing the revenue yield per hectare. It is our intent to offer our existing token holders the possibility to diversify their exposure into extensive agriculture in the future. We are a good neighbor within our vicinity and the La Pradera operations are in good standing in the Cattle Ranching Association of San Ignacio de Velasco in Santa Cruz, Bolivia.
2023 net operating revenue - nor
Following are the financial results for the Fiscal Year 2023 and the corresponding NOR due to token holders registered as of June 30, 2023.
As a transition into agriculture was initiated on half of the property, the cattle revenues correspond to the private token-holders and the cattle NOR is divided by 5 million tokens only.
The 2023 NOR of CHF 0.0345 per token represents a return of 3.35 % pa and is expected to be paid by year end as per the report from our Auditors. As mentioned before, we are delivering financial results to our Finka Token investors for the fourth year in a row.
Finka Token
The Finka Token has been a pioneer digital security in the Real World Asset space, even before the RWA term was coined. It has survived several crypto winters and to this date remains as a reference financial instrument that converges a productive activity with crypto finance based on blockchain. The Finka Token was featured in different publications as well as taking part in Asset Rush in Geneva in March 2023.
The Finka Token is recognized as a pioneer asset based security token which evolved from concept-to-issuance in a fully compliant and professional process supported by the best service providers in the Crypto Valley. The mass distribution of our token was limited by the systemic reality of no secondary market and thus no liquidity and no distribution channels given the lack of that there are no security token exchanges or approved marketplaces
Thus, the Finka Token’s liquidity is limited and it remains a private instrument until the secondary market develops. We are on advanced conversations with a few regulates security token exchanges awaiting approval such as IXSwap as well in continued dialogue as with Citrix, Equito and Aktionariat. We are confident that the market will improve given the increased institutional investor adoption of crypto assets and the upcoming of ETF’s fairly advanced in the approval process. The Finka Token remains a private instrument and not trades on any venue.
Dear investors, we are very proud to stand out as one of the few digital assets representing return to our investors in the midst of the crypto winter, where asset values have dropped significantly. We are convinced that the future of finance will follow in our footsteps of leveraging blockchain technology on tangible earning assets such as the Finka Token with its revenue generating cattle herd.
We thank you for your trust and we look forward to another year of increased production, sustainable operations and financial inclusion.
I would also like to thank our service providers, our financial advisor as well as to the whole team at La Pradera and Finka. A special mention goes to Pablo and Marcial for their dedication, leadership and long hours which have contributed to our success this year.
I hope you share our excitement for ending another productive year fulfilling our promises. We hope that you and your families stay healthy and safe.
Sincerely,
Carlos H. Fernandez Mazzi
Founding Partner
Finka GmbH