Ann: Shareholder Update - Local Activity, page-38

To me this announcement has lots of new information and is letting shareholders know ECT is on the road to decent near term cash flows and midterm to sustain the business.

The landscape has changed significantly in regards to gas and electricity prices and the option of Coldry is now more than favorable with its net zero emissions footprint.

Translating this presentation it appears we will have no trouble getting customers for the balance of current production output of Bacchus Marsh.

This will then provide the bankable case for the spend on upgrading to the full 35ktpa at Bacchus Marsh, which can be achieved quite quickly and deliver up to $13m in revenue.

Whilst in the process of upgrades at BM I wouldn’t be surprised if the LaTrobe Valley project kicks off, the margin from that size plant is just too compelling not to with this $1B available market relevant to ECT.

The beauty of all this is that the steam supply business outcome is in our own hands, the market has turned back in our favor and the demand is there so it’s up to ECT to follow this through as described in this presentation. There will be no lack of support and encouragement from shareholders for management to generate enough revenue to fully sustain the business that’s for sure.

Without being intentional I believe it will also send a subtle message to NMDC and NLCIL that we are far from a one trick pony and not reliant on them for our future success. It won’t be far off that ECT will be a sustainable business with what they can achieve just here in Vic/Tas, and India can be viewed as the blue sky.


Pertinent new information

Up to $39m in possible reoccurring revenues to ECT from Vic/Tas

>15% savings for customers

30% less emissions v biomass

Finance partner for new installations of John Thompson boiler systems

W2E . . . .