Business Description:
Charter Pacific Corporation Limited (CHF) is an investment company focusing in the mining and resources, and agribusiness sectors.

Strategy Analysis:
Charter posted a loss of $3.5m for the year ended June 2003, compared to a profit of $4.6m in the previous period. The result includes a loss of $0.624m from CHF's investments in associates comprising Metal Storm Ltd (MST), AGT Biosciences Ltd (AGT) and DCR Global Ltd (DCR). CHF's net tangible asset (NTA) per share as at June 2003 was $0.19 ($0.224 in 2002). MST (25.51% at June 2003) is involved in the development of its 100% electronic ballistics technology. Potential applications range from military through to industrial, agricultural and seismic uses. In October 2003 MST signed a letter of intent to acquire US manufacturer ProCam Machine LLC. ProCam manufactures precision-machined parts for the defence, electronics, aircraft and space propulsion industries, giving MST a strategic position in the US defence engineering sector. CHF has a 33% interest in AGT Biosciences Ltd which is extensively engaged in gene discovery. AGT has some advanced gene and protein technology which has attracted Merck-Lipha (ML). ML has taken a 14.99% equity interest in AGT and has committed over $34m to diabetes and obesity research with the company. The company owns a 50% interest in unlisted DCR Global Limited, which posses intellectual property to amplify radio frequency power, enabling it to send a signal from one antenna to another. In September 2003, CHF acquired 50% of OEM NuTech Pty Ltd which represents powder coating products and curing systems on behalf of DuPont and a curing technology company from Sweden, Triab/ Tri Innovations AB. CHF will actively assist NuTech to introduce these new systems into the Australian market.