Ann: AGM Presentation, page-10

Hi Rsah I will try and address your points as I can after attending the AGM.

Point 1. Not a word about hedging in the presentation but the presentation can only be so big or long and if you had been at the meeting you would have found that they hedge about a quarter of the 80% (mix) that they produce to a maximum of 12 months out. FX is also hedged. I think this is a very prudent strategy and will serve them well going forward. No one, not even you knows tomorrows price of a commodity such as coal. If you did you would not be wasting time on here but rather trading coal futures and living in some sun soaked paradise sipping on your favourite beverage.

2. If you read the fine print it states that average based on $176US coking coal price and US/NZ .68. They also said at the meeting that obviously if these current conditions continue then the $24m second quarter will be higher and the $20m will be higher too.

3. There was a question posed the the auditor about if there was a contingent liability on the books. The auditor did not see fit to have one there. I think that is lacking in the auditor (bad boys PWC) but if the auditor is comfortable there may be some hope? Not that hopeful myself.

4. If you had been at the meeting this was all explained in detail by Richard Tacon. I have forgotten most of it, wait of the audio and you will be able to find out what you need.

5. Not too sure about this one to be fair.

6. Maybe there is a change in the mix of coal being taken out of the ground. the price is dependent on the type of coal they supply. the more HCC that is supplied and less of the HACC the higher the % will be. The breakdown in explained in the presentation. HCC gets 100% of the price, SHCC gets 80% and HACC gets 64%. Its possible that their mix has changed slightly adjusting for the 4% change. 

7. This was briefly touched on in the meeting during the meet and greet and drinks. I was not really part of the conversation but from what I gather BRL have a more measured approach not a costly helter skelter on that Solid Energy had and that helps cut costs and injuries etc so all the better going forward.

My point. As to the governance structure, I suggested they add at least 2 directors to the board and remove the execs from the board preferably to have some separation there. The company is now to big for a board of 4 with 2 being in executive roles. They did say they were working on it. I hope come the next AGM there will be at least 1 additional board member, preferably 2. If not I will not be happy.