Email correspondence with the company from April/May, 2020. I've...

Email correspondence with the company from April/May, 2020. I've got to say I was very surprised to receive such a prompt response from the CEO. I would have thought he'd have more important things to do.

From:
Sent: Thursday, 30 April 2020 10:50 AM
To: Enquiries <[email protected]>
Subject: Attention: Michael Kotowicz, Investor Relations

DearMichael,

We have acouple of questions relating to the recently released quarterly cash flowreport.

1. At 31Dec, 2019 debtors were slated as $17m, yet at 31 Mar, 2020 only $2.3m had beenreceived.

2. TheMar Qtr, 2019 cash inflows were $10m (approx 40% of FY19 revenues), and MarQtr, 2020 was $2.3m (approx 4% of forecast FY20 revenues).

Can youprovide some clarity around the delay in receivables in point 1 and the usualseasonal nature of cash inflows in point 2. I understand we are living inunusual times and this may be significant.

Thankyouin advance

KindRegards

Robert Schuitema <[email protected]>

May 1, 2020, 8:27 AM

to me, Michael Thank you for your email which has been passed onto me. Chinese Government contract payment terms vary from project to project, but are general longer than our other International Customers. The major Receivables were invoices issued in December 2019, hence we were not expecting payment from them in Q1 2020. Hence, there have been no delays in receivable payments – they are in accordance with our contracts with them. A Cashflow Statement is very different to a Profit & Loss Statement. Cashflow tend to be lumpy so comparing one quarter to another can be misleading. For FY2019, PET received $28m from customers and total cash payments out were $21m – a Net Operating Surplus of $7m. Regards, Robert Schuitema Phoslock