Ann: FY2023 Net Profit After Tax US$18.2 Million & App 4E, page-14

My questions are:-

1) Does management have problems obtaining financing? I note the recent fund raising activities. Selling shares to jfe Shoji when share prices r at its lows, as well as the sale of the Qinzhou property. I do note the past bond issue of aud30mil with a 10% coupon as well.

2) There seems to be a large inventory of electricity in the balance sheet. I estimate it should be around 100-150mil USD of electricity that has been paid for. Noting that the 2nd 5 year tax breaks ends in 2026. I was wondering what r management plans with this? Management has stated that they plan on having 2 furnaces as expansions. However, as the electricity in inventory is already paid for, wouldn't it be more prudent to have a larger expansion to take advantage of the 5 year tax free status?

My recommendations:-

1) There should be proactive talks with the bankers for further expansions of the smelter. Preferably for silicon metal, the sector is also in favour, as it is related to renewables, while the steel sector is out of favour at the moment. New expansions would have the benefit of higher cashflow by drawing down on electricity in inventory as well as om holdings access to cheap electricity. So repayment shouldn't be an issue. Additional electricity should be obtained from Sesco for the expansion post the electricity drawdown. The heat recycling plant should be built as soon as possible.