Namoi Cotton : Quarterly Activities/Appendix 4C Cash Flow Report

Rule 4.7B

ASX RELEASE

28 March 2022

QUARTERLY ACTIVITY REPORT AND APPENDIX 4C -

NAMOI COTTON LIMITED (ASX: NAM)

Namoi Cotton Limited ('Namoi' or the 'Company') is pleased to provide its Appendix 4C cash flow statement for the quarter ended 28 February 2022 ('Q4-22'), along with the following update.

Business activities in the Fourth Quarter (Q4-22)

There was no material change in the activities of the Company during Q4-22. The company is undertaking activities to prepare for the 2022 harvest that will commence in April 2022. This includes expenditure on maintenance, procurement of consumables and staffing.

The Company's Q4-22 cashflow covers maintenance in preparation for the coming season together with receipts from customers for by-products.

Net cash outflow from operating activities in Q4-22 totalled $0.8 million (Q4-21: net cash inflows $1.1 million). Receipts from customers totalled $15.5 million during Q4-22 (Q4-21: $9.7 million) and compared to product manufacturing and operating costs of $11.2 million for the same period (Q4-21: $6.0 million), reflecting increased by-product volumes versus the same period last year.

Staff plus other administration and corporate costs totalled $4.8 million in Q4-22 (Q4-21: $2.7 million). Payments to related parties represent payments made to Grower Directors for the supply of cotton lint, by-products, and services less the cost of ginning cotton. These payments are included within product manufacturing and operating costs and were made in the ordinary course of business.

Material Developments

The outlook for Australian cotton production for Queensland and New South Wales, has increased to 5.0 million bales1 for the 2022 season, in comparison the historical average of 3.5million bales.

This announcement was approved by the Board of Namoi Cotton.

For further information, please contact:

Namoi Cotton Limited

John Stevenson

Chief Executive Officer [phone]

1 ABARES forecast (March 2022)

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms Page 1

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

Namoi Cotton Limited

ABN

Quarter ended ("current quarter")

76 010 485 588

28 February 2022

Consolidated statement of cash flowsCurrent quarter

$A'000

Year to date (12 months)

$A'000

• 1. Cash flows from operating activities

• 1.1 Receipts from customers

• 1.2 Payments for

  15,469

  294,821

  • (a) research and development

  • (b) product manufacturing and operating costs

  • (c) advertising and marketing

  • (d) leased assets

    (11,199) (280,015)

  • (e) staff costs

    (4,091) (15,755)

  • (f) administration and corporate costs

• 1.3 Dividends received (see note 3)

• 1.4 Interest received

  (737) (2,146)

• 1.5 Interest and other costs of finance paid

  7 (276)

  12 (1,338)

• 1.6 Income taxes paid

• 1.7 Government grants and tax incentives

• 1.8 Other (provide details if material)

  237

• 1.9 Net cash from / (used in) operating activities

  (827) (4,184)

• 2. Cash flows from investing activities

• 2.1 Payments to acquire or for:

  • (a) entities

  • (b) businesses

  • (c) property, plant and equipment

  • (d) investments

  • (e) intellectual property

(f)other non-current assets

(2,726) (4,734)

Consolidated statement of cash flowsCurrent quarter

$A'000

Year to date (12 months)

$A'000

• 2.2 Proceeds from disposal of:

  • (a) entities

  • (b) businesses

  • (c) property, plant and equipment

  • (d) investments

  • (e) intellectual property

  (f)other non-current assets

• 2.3 Cash flows from loans to other entities

• 2.4 Dividends received (see note 3)

• 2.5 Other (provide details if material)

  1 417

  18 473

• 2.6 Net cash from / (used in) investing activities

3. Cash flows from financing activities

• 3.1 Proceeds from issues of equity securities

  (excluding convertible debt securities) 10,640

• 3.2 Proceeds from issue of convertible debt securities

• 3.3 Proceeds from exercise of options

3.4 Transaction costs related to issues of (295)

equity securities or convertible debt securities

3.5 Proceeds from borrowings 4,100

• 3.6 Repayment of borrowings

• 3.7 Transaction costs related to loans and borrowings

• 3.8 Dividends paid

• 3.9 Other (provide details if material)

  (2,707) (3,844)

  (46) (8,681)

• 3.10 Net cash from / (used in) financing activities

(46) 5,764

4. Net increase / (decrease) in cash and cash equivalents for the period

• 4.1 Cash and cash equivalents at beginning of period

• 4.2 Net cash from / (used in) operating activities (item 1.9 above)

• 4.3 Net cash from / (used in) investing activities (item 2.6 above)

1,586 270

(827) (4,184)

(2,707) (3,844)

Consolidated statement of cash flowsCurrent quarter

$A'000

Year to date (12 months)

$A'000

• 4.4 Net cash from / (used in) financing activities (item 3.10 above)

• 4.5 Effect of movement in exchange rates on cash held

• 4.6 Cash and cash equivalents at end of period

(46)

5,764

(1,994)

(1,994)

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

Current quarter

$A'000

Previous quarter

$A'000

• 5.1 Bank balances

• 5.2 Call deposits

• 5.3 Bank overdrafts

• 5.4 Other (provide details)

• 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)

6. Payments to related parties of the entity and their associates

367	1,586
(2,361)
(1,994)	1,586
Current quarter
$A'000

6.1 Aggregate amount of payments to related parties and their 32 associates included in item 1

6.2 Aggregate amount of payments to related parties and their 0 associates included in item 2

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.

7.

Financing facilities

Note: the term "facility' includes all forms of financing arrangements available to the entity.

Add notes as necessary for an understanding of the sources of finance available to the entity.

Total facility amount at quarter end $A'000

Amount drawn at quarter end

$A'000

7.1 7.2 7.3 7.4

Loan facilities

80,202 44,696

Credit standby arrangements Other (please specify)

Total financing facilities

80,202 44,696

7.5 7.6

Unused financing facilities available at quarter end 35,506

Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.

The following secured facilities were in place with Commonwealth Bank of Australia ('CBA') at quarter end:

A term debt facility of $42 million which was fully drawn. This is a committed, non-amortising line utilised to fund capital projects relating to the plant, property, and equipment of the business.

A committed borrowing base facility of $17.5 million of which $nil was drawn. This is a non-amortising line of credit utilised to fund day to day expenses of the Company including specific funding needs for cotton seed inventory and debtors, ginning consumables, and general working capital needs.

A further uncommitted facility of $10.0 million, not currently utilised, is available. A trade advance facility of $5.0 million, not currently used.

The term debt and committed borrowing base facilities both mature on 30 October 2024. The weighted average variable interest rate on the Company's interest-bearing loans is currently1.79% pa with a line fee of 1.23% pa

Equipment loans for gin packaging and logistics supply chain equipment totalling $0.702 million which have an average term of 1.8 years with the average interest rate implicit in the contracts of 4.81% p.a.

Additionally, an overdraft facility of $5.0 million with the CBA is also available at an interest rate (currently 3.20%) of which $2.361 million is utilised.

8. $A'000

8.1 8.2 8.3 8.4

8.5

Estimated cash available for future operating activities
Net cash from / (used in) operating activities (item 1.9)	(827)
Cash and cash equivalents at quarter end (item 4.6)	(1,994)
Unused finance facilities available at quarter end (item 7.5)	35,506
Total available funding (item 8.2 + item 8.3)	33,512
Estimated quarters of funding available (item 8.4 divided by
item 8.1)

Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as "N/A". Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5.

40.52

8.6 If item 8.5 is less than 2 quarters, please provide answers to the following questions:

8.6.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?

Answer: N/A

ASX Listing Rules Appendix 4C (17/07/20) Page 5 + See chapter 19 of the ASX Listing Rules for defined terms.