Duxton Water

Duxton Water Limited (Duxton Water or the Company) is Australia's only listed vehicle providing investors with a direct exposure to the Australian water market. Through ownership and active management of a diversified portfolio of water assets, Duxton Water provides irrigators with a broad range of water supply solutions. Structural shifts in produ... ctive demand for water, combined with the cap on supply, suggests water entitlements may experience further appreciation in value. With an active management approach, the Company expects to provide investors with a bi-annual dividend and exposure to capital growth through the appreciation in value of the underlying water assets. Annual allocation (usable water) prices can be volatile and fluctuate considerably over the course of a single year due to the nature of the farming cycle and short-term weather trends. Annual allocation prices can be impacted by long-term weather trends (wet-year vs dry-year). This shift towards higher margin annual crops, and growing inelastic demand from new permanent plantings, has led to an increase in competition for the available resource. Duxton Water believes this structural shift in demand will result in a new average allocation price, and renewed interest in longer-term water supply solutions. In the past, irrigators received a permit to access water based on their plantings; permanent crops like vines or nut trees needed a higher security of supply than annual growers who could scale their production up or down each year dependent on the available resource. In the 1990s, it was realised that further issue of water permits was not sustainable, so a cap was placed on the further issuance. To allow water-users to continue to develop, grow and change their production, the Government developed a trade capability, by recognising the permit as a perpetual right to the resource, and by separating this asset from the land. So, one can own water without land and land without water. Today these rights are called water entitlements; ...Read More