Ann: Response to ASX Appendix 3Y Query, page-36

That was quite a big drop for the US market last night after the larger than hoped for latest inflation reading. The market clearly was hoping for a lower reading so gave back most of last week's gains in one day. I think it's still very debateable about whether this is a bear market rally or not. The US market is still well above the June low and has time to soak up the latest pessimistic inflation reading and potentially turn back up from a higher low. What does happen ìs going to depend on what the Fed says in response and of course the following month's inflation reading. This was a clear setback for the market though and sentiment will play its part on MNB. However the difference between the US market and Minbos is that the US market is probably fully valued at normal interest rate levels and Minbos is heavily undervalued on its phosphate project alone. So development of that first project should still see the sp at least quadruple medium term even if interest rates continue higher. The U S market will likely not continue higher with higher interest rates near term. Development of our projects will play a much larger role on the sp than inflation numbers. Especially so considering how good an inflation hedge MNB is. Eg if fertiliser prices continue higher and Mnb has its own phosphate supply as well as stable green power costs for producing ammonia, then inflation actually will boost MNB's profit potential and its competitiveness relative to fossil fuel based fertiliser producers.