Ann: Australian Government grants R&D Advance Finding, page-6

Thank you for your comment, Isi. I agree with you that any extra funding is a good thing, and I believe that the BOD should be applauded for their efforts. And it is a vote of confidence from government.

But if you look into it closely you will find that it is not "beautiful in its ugliness", it's concerning.

Let me explain.

• Enables a refundable tax offset to be claimed for a cash rebate on eligible expenditure incurred on
Stage 1 of the project

Note - For Stage 1 only. R and D.

• Total estimated eligible expenditure of $70.7m which equates to cash rebate of $30.7m

Note - This implies that expenditure on Stage 1, during FY 22/23 and FY 23/24 will be at least ($70.7 million less approximately $9.3m of expenditure for FY 21/22). i.e., $61.4 million.

When NRZ spends $61.4 million in FY 22/23 and FY 23/24, the cash rebate will be worth ($30.7 million less $4 million) i.e., $26,7 million.

But project money has to be spent before NRZ can claim the rebate. In other words, NRZ still has to find another $61.4 million to fund Stage 1 before it can claim the total rebate in two separate claims. $61.4 million to complete Stage 1 is a lot of brass. What is there left to do?

This also implies that Stage 1 will definitely not be completed before mid 2023. That's a bit of a concern.

Other than the current claim of $4 million, there will be no further rebate until after mid 2023.

While $4 million, "anticipated" only at this point in time, would be helpful, its impact on the current financial wellbeing of NRZ is negligible. Given the current financial position as we know it, there is nothing to get excited about. The major benefits of this grant are too far away to be of much use at the moment.

NRZ needs the big cash injection ASAP.

That's how I see it, Isi. It might be regarded as a negative view, but I think that it is also realistic, and is worth your consideration. All my opinion only. J L.

Cheyne, mate, if you read this post, unfortunately I can't lay claim to the witticism to which you refer.