Ann: Investor Presentation, page-21

EBITDA margin and EBITDA had gone lower and in some cases in other companies, gone negative, is mostly due to the fixed operating expenses.

In the case of 1H2023 vs 1H2022, the current half had increased the gross margin from 18.05% to 21.26% overall. However, the $30M reduction in revenue had reduced the gross profit from $11.589M to $6.679M. From my calculations and hopefully it is correct this time, Operating fixed cost in 1H2022 was $10.738M vs $6.213M this half. As a result, EBITDA had reduced from $0.851M to $0.466M last half.

Essentially, the SPS and RR needs to get up to speed to cover the dropping off of the contribution from Ivory Coast. I am not happy with the delays and speed in the last half. It is frustrating but this presentation show some confidence by the current management on achieving backlog of $132M by end of this year. We shall see.