Ann: Annual Report to shareholders , page-3

Well, I just finished reading the annual report.
Standard report, but a couple of things did stand out and are worth reading!

1. 86% of ordinary capital owned by top 20.
With any other stock, such a tight register would have
the stock at 3 x the current price (minimum!)

2. The administration and employment fees are very
high.(I have yet to see any board/corporate advisory
action to justify this!)

3. They paid a way over the odds for capital raising fees
(approx. 10%!)

4. The company's corporate advisor, Petra Capital, has as a
broker, this year purchased 176,000 shares over 122
transactions!Add to that the fee they charged/arranged
for the capital raising and one has to wonder if it isn't
time for a change (and that applies to the management as
well!)

Those were the negative comments. The positives are:

1. Recent scoping study was very good.

2. Outlook for fertiser prices is strong (particulary with
the climate change coming - El Nino is coming back!)

3. To date solid support from institutional investors.

This is a good story with great potential! It is up to all
shareholders, large or small, to ensure that funds aren't wasted on administration and salaries and deep discount capital raisings which will only serve to ensure that the company is ultimately acquired by foreign interests at a bargain basement price.