Ann: SunRice Presentation ASX CEO Connect Event, page-3

I was at the ASX CEO Connect Event and thought the presentation given was one of the better presentations of the day. After a second look through the latest annual report a couple of things jumped out:

1) Borrowings/Gearing
Market Cap - $383 million @ $6.53
Total Borrowings: $220 million (However, total assets are $942 million and net assets are $441 million)

Given that earnings can fluctuate significantly in drought conditions and levels of crop produced, I think the level of gearing is probably on the high side and perhaps the current share price fall reflects this.

2) Capital Raisings
Capital raisings appear to be likely in the future given the companies growth ambitions - Investors may be better off buying a small parcel and waiting for the next capital raising before purchasing more a large parcel of shares.

3) Employee Share based payments
Significant amount of shares/performance rights issued to staff (507,000 rights to the CEO alone)

If investors have any thoughts on the company or the above, i would be interested in hearing.... Just thought i would post a few comments to get the ball rolling on this forum...

Good luck to all....