Ann: Annual Report 2024, page-49

Have been reading through the annual report this morning. There are some gems in this report that have increased my confidence in how well this company is being managed, future sales channels and growth, and their ability and intention to continue paying dividends. They seem happy about the success of the company last year, but also very motivated to continue the upward trajectory of the business. They also seem to just be a thoughtful and considerate board, wanting the best for their employees and shareholders alike.

The following is verbatim from the report -

· Pearl prices in H1 FY24 averaged a record high of AUD$103/pce, softening in H2 FY24, realising an average of $84/pce for the year. This annual average is still well above long-term levels. There are indications that the end-demand for pearls from China remains strong. The Company held back a proportion of the FY24 year’s production, along with harvests late in FY24, for sales in FY25.

· Based on positive results for a small number of pearls recently harvested and graded from certain genetic groups, and for which large volumes remain to be harvested in the coming months, we anticipate an upward trend in overall pearl quality in FY25.

· We have spent the past 24 months reconnecting with our wholesale customers, primarily within Australia, but also into Asia and Europe. Now that these relationships have been reinvigorated, we are focusing our efforts on the products we offer within these markets, particularly strands and pairs, where we can add significant value outside of the traditional auction channels.

· Plans are underway to upgrade the North Bali showroom to deliver a flagship retail and pearling experience that will tell the Atlas Pearls story and take people on the sustainable journey of pearling. We have launched a new retail-focused website and have established new manufacturing partnerships to support moving forward with new designs and collections.

· Our medium-term growth plan includes expanding several of our existing sites.

· The Company is exploring options for revenue diversification within our existing areas of expertise. As a leading pearl producer with a skilled aquaculture workforce, a comprehensive operational presence in Indonesia, and backed with strong government and community relationships, Atlas Pearls has several core competencies that could be applied to closely related aquaculture products. Throughout FY25, we will evaluate various diversification options, including both organic and inorganic opportunities.