Ann: Dividend/Distribution - CII, page-3

The results for the half year to December 2016 are very poor yet management / directors make no comments or proposed any solutions to address the issues of poor sales and profitability. Below is a comparison of sales and costs of production.

Sales revenue $A mill 2014 2015 2016
Phosphate 59.5 73.2 49.8
Palm Oil 21.4 21.2 14.5
Finance revenue 0.35 0.48 0.40
Rendering services 5.6 4.1 4.3
Other sales ( diesel ) 1.1 7.3 8.8

Cost of sales
Costs of production 44.3 48.5 43.8

Shipping costs 9.0 10.9 7.1

The dramatic downturn in sales of PHOSPHATE in half year to 2016 is even below sales in 2014, the decline in the price of PHOSPHATE is one issue and with low shipping costs it is cheap to ship PHOSPHATE from Africa where there is huge production.

Palm oil is another issue, the plantation was purchased some years ago and has failed to fulfil the predictions of directors and management who recommended the purchase, rather than a return of capital of special dividend, the palm oil investment should be sold and a loss taken - it is a waste of time and capital.

On the other hand the poor results even though CII has a cash pile may be a set up for management to make a 'low ball ' take over offer and take out minority shareholders for little cost.