Ann: FY21 Results Commentary, page-37

I think it’s naive to think management don’t care about the share price. Clement has close ties with Euroz Hartleys through his time as an institutional dealer. I have also spoken to him about institutional support - there are definitely funds that are watching the company’s transformation into a water services provider. Instos will however rather pay more for an bigger and advanced and matured business; so as the company makes acquisitions and hit milestones, that support will come.

As for right now, Vysarn is probably the smallest driller on the ASX. While they do operate in a niche market that should withstand economic cycles, if we are being serious it’s probably not going to attract the serious money, especially when bigger companies are just as cheap.

Also let’s not forget nearly all staff employed are operational Pentium Hydro staff - so the question is the available energy best spent seeking to bed the core business and vet private businesses for potential acquisitions or worry about spruiking the stock so the share price stays a few pips higher?

the reality is that the share price will eventually catch up to fair value of the underlying business - and that is probably why the focus has been building up the business. Not a single placement has been done since IPO - so there has been no forced dilution on shareholders. So until we see otherwise, I think it’s unfair to insinuate that they may do a dilutive cap raising at a discount. In fact I’m sure it’s quite the opposite, management are very protective of shareholder capital.

the share price has been frustrating no doubt, especially when lots of rubbish on the ASX are booming. But the value for VYS holders will come when we grow into the water vertical - which is hopefully not too far away and then we can play catch up.