Ann: 2015 AGM Presentation, page-10

Thanks Freighter for asking questions at the AGM, in particular re. compensation. I did write to management some time ago, unfortunately withouth getting an acknowledgement, nor an answer. The content of my note was similar to the posting I made earlier. Compensation claims seem to be only at the negotiation point. The Annual Report says that there are no proceeedings and I would hope that share holders would have been advised if there had been a change. Considering the 7 months delay and the amount of money involved this is a major issue.

Here is what I sent to them: "Getting the plant ready for performance trials and the marketing of the Anaeco System are obviously the priority for management. Legal wrangles are distracting and costly.
Still, as a shareholder I have been told that the commissioning, performance trials and ultimately handover to the client have been delayed by months due to:

1. a) Leaks in process water storage tanks.
2. b) Manufacturing faults in bioconversion vessel conveying systems.
3. c) Defective gas analysing sensors

According to the MD, faults a) and b) caused 7 months of delay, the impact of fault c) has not been quantified.
Whilst Monodelphous as the main contractor would be the first in line to claim redress, ANQ had to bear substantial additional costs; inability to support its marketing drive with presenting a working plant and potentially loss of good will and reputation.
The Annual Report under “Proceedings on Behalf of the Group” on page 19 does refer to any pending claims.
The statement of Comprehensive Income shows for the year 2015 costs of $7,905,307 for “Project Delivery Costs”. A good part of these and the other expenses would be due to the delays caused by the faulty equipment.
Is the inaction on this matter due to the fact that the main contractor – who happens to be a main shareholder – would be first in line to defend a claim?
Whilst I accept that the Directors have other priorities, I think they owe the many smaller shareholders an explanation. Unfortunately I cannot attend the AGM – but the question should be raised."