NCF question, page-2

Hi @Popeye82

What's planned for NCF in 2018 (based on the recent Alan Kohler interview)

• Huge opportunity for hydrogen cars (which is of great interest to Japan) – the technology can make hydrogen out of the waste product of a power station for example.
• We have huge gas deposits in Australia. When you drill a gas deposit, three things come out: natural gas, CO2 and H2O. The CO2 is normally vented back into the atmosphere (which is bad), and the H2O is usually pushed back down into the well or left on the surface. VIV’s tech investment can take this H2O and CO2 which would otherwise go to waste, and make more gas. This makes it substantially more profitable, and environmentally sustainable by not venting CO2 into the environment.
• Is it VIV’s intention to sell their 33% ownership eventually? They will look for a home outside of Vivid at some point, and outside of Erdi Group (the other 33% owner) that gives it the best chance of success.
• With the right partners and right financial backing, they would either sell it altogether; list it on the ASX; or just maintain a percentage ownership (with royalties probably). It has a leadership team of its own to take it forward.
• What do they think it’s worth? Looking at the valuation and what it can do (ie. it literally makes 400 million dollar plants substantially more profitable and gives them a sustainability tick) it’s probably worth considerably more than what it’s valued at today on the balance sheet.
• It’s not unrealistic to consider that the 33% holding is worth as much as VIV’s current market cap. (25 million)
• Stay tuned, a new global CEO for NCF has been identified already (see recent announcements).