Ann: iM3NY Certification 2nd Announcement, page-64

Good question.

The only clue we currently have is contained in the half year accounts:

iM3NY had about $4m of inventory attributable to MNS via equity accounting rules - with MNS owning circa 60%, that translates to about $6.67m of total inventory held by iM3Ny at 31/12, but I would assume at least $1.5m of that is input materials and so lets assume only $5m of that is finished goods. That inventory would have been accumulated over the period from 12th August (start of commercial production) to 31/12 - so about 4 months. However, the build would have been very slow in the first couple of months as they tuned in gear, so again assume that $4m of that would have been in the last 2 months - lets assume average of $2m of finished goods per month at operational run-rate (whilst waiting for certifications).

If we extrapolate that to 30th June, we are probably talking about iM3NY having inventory (finished goods) of maybe $15m available for delivery upon certification on a very conservative basis.

At a consistent run rate that delivers 1GWh of production over 12 months, they are capable of producing about US$140m (AU$215m) of gross revenues at US$140/kwh sales prices (I am assuming a sales figure that includes the tax credits). So, it is possible that they could have ramped production in the past few months ahead of certification and may have much more product available to sell.

These as just best guestimates on the available information and I invite anyone else with additional data to contribute. I would hope that with certification announcement, they also give us some insight into the initial impact on sales and cash flows at iM3NY and also on their recent loan to iM3NY (does that need to stay in place or is there capacity for near term repayment).