Ann: Response to Speculation, page-313

I hear you on this but at the seminar in Melbourne last year James Brown was very firm on the prospect of self funding the expansion. I cannot see a reason why the board would allow control to be handed over for what essentially amounts to a handful of magic beans.

I am confident the board knows the true value of the shares. In previous posts I nominated the Beer target of .63 as a good starting point for fair value. This number had some risk factors that will soon not exist. The first will be taken care of by commissioning. With this being imminent the board must be taking this as a given. Within three months we should have the first sale. Again, derisking.

Time is on the side of the board, not the buyer. Each day we get stronger and more viable. I was hoping for inclusion in the ASX300 with this rerate and we now have it.

If you look at the ASX300 as it currently stands https://www.asx300list.com/ you would see that Altura would slot in somewhere between 205th and 215th. Not far off the ASX200. Indeed, if our SP gets to around $0.50 we'd be very close to ASX200 inclusion in the June rerate.

The board knows all of this. They know our footprint with funds and SMSF's grows on Monday. Time is their friend and I don't doubt they will want to see the major milestones reached (at least commissioning and ASX300 listing and probably announcement of the PFS for doubling production) before any number is truly discussed.

I add that if we hold off until june and we have a=our first sales and if all is going well, ASX200 listing, then any offer under $1.00 would appear optimistic. I base this on a derisked valuation (using the Beer base) of around 75-80c. Then there would be the premium of around 25-30% . With this register being so tightly held they would need to convince the big 20 (other than themselves of course) that the bird in the hand was indeed worth more than the two in the bush.

After listening to management speak about this project and all of the hopes they have for increasing the resource, I would find it hard to believe they would settle for anything like 80c.

Anyway, I think we have quite a bit of time to ponder because I think management want to see some of the key milestones reached and the value bumped before they make any recommendation.

GLTAH