Ann: Response to ASX Query Letter, page-21

RAN should be hammering the Australian Government, Woolies and Coles hard after the Redcycle debacle.

Here is the example.
https://www.supermarket.co.za/news-article.asp?ID=13036&CatTags=8-Going%20green,%203-On%20the%20move

The below was extracted out of the RAN half yearly report on the Australian operations.

Fixed costs for this business are very low, and our variable costs of resin, labour and fuel are completely driven by product demand. Once we see demand for our product grow, we will consider ways to source and treat our own recycled plastic as we do in Indonesia, which would significantly reduce input costs. We have considered local manufacturing of recycled plastic pallets, as we do in Indonesia, but we are not convinced of a similar business opportunity at this time.Significant government support is still available to expand this operation, however until we see a sustainable increase in demand for our current products, we will not be pursuing these grant opportunities as they are mostly matched funding in nature. The Group is in the process of pursuing R&D tax rebates for both FY 21 and 22.

The plan should be.
1. Four way discussion with Woolworths, Coles, Australian Government and RAN to get in place contracts and government funding.
2. CR based on this business plan for Australian expansion as funding match.

Woolworths and Coles are the biggest employers in Australia and one would think had some pull through power to get this up with the Government. They have been criticised about their involvement in Redcycle so this would be a “we’re doing something about it story”

This is the opportunity to do a major play and I don’t think it could be any simpler.