Ann: Update on Kapua Orchard Strategic Review, page-2

Disappointing to see the Kapua Orchard timetable drag out materially. The board has done a decent job of transforming the company up until this point, but they have overpromised and under-delivered here.

Consequently, the $10m of AMD con notes maturing in September will likely need to be rolled/extended another 6-12 months based on the current timetable. Not a big deal as they only bear interest at 4% but they are still a weight on the capital structure and SP.

Still, even if you halve the independent valuation ascribed to the Kapua Orchard of ~$45m AUD, and add in net cash (incl inventory) we’re still trading around a nil/nominal EV so not much downside risk. If it gets back to $0.225-0.23 again, I’ll be adding