I agree with a lot of what you have said there Cocky, the...

I agree with a lot of what you have said there Cocky, the operational performance of the
farms since listing has been dismal (or any other word you want to use...there are plenty of
colorful words that would fit perfectly), I think management would agree with this, I am sure
they are not happy about the 2 years of drought and now 2 years of flood either

but
'The Board of Duxton Farms would like to reiterate unequivocally that it
has no plans to raise capital at a significant discount to the Company’s net asset value, and that
the recent season has had no impact on this commitment.'

They have not left themselves a great deal of wriggle room here,its a pretty firm comittment,
they know they have to come up with $9mil for Piangie and know how much we owe and how
much headroom there is in our debt book....yeah we are bleeding cash at present and it seems
that this will all be discussed at tomorrows agm, but you could not get much of a stronger denial
of a dilutive cap raise than that IMO

The flood will probably hit our valuations, the prevalence of floods in the region was a big reason
why farmland is cheaper here than in many other areas IMO, or what Ed called 'good value'...it takes a
few years for people to forget about the floods after a flood and land prices close that discount,
then another flood comes along and the cycle starts again
If it does hit the valuations then that 40% gearing ratio limit will be out the door
Thinking outside the square a bit...Duxton have an unlisted 'diversified agricultural fund' now open,
just like we bought into the unlisted bee fund, are we going to be invested into by this fund
its just a guess at how we can raise capital without doing it at a significant discount, or are we
going to try and sell a farm or two, this all may be clearer tomorrow


cheers grant