Namoi Cotton : Quarterly Cashflow Report

Rule 4.7B

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	30 November 2020

Consolidated statement of cash flows	Current quarter	Year to date
			$A'000	(nine months)
				$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	14,388	70,030
1.2	Payments for
	(a)	research and development
	(b)	product manufacturing and operating	(9,767)	(66,939)
		costs
	(c)	advertising and marketing
	(d)	leased assets
	(e)	staff costs	(2,441)	(8,629)
	(f)	administration and corporate costs	(517)	(1,482)
1.3	Dividends received (see note 3)
1.4	Interest received	2	6
1.5	Interest and other costs of finance paid	(417)	(1,273)
1.6	Income taxes paid
1.7	Government grants and tax incentives	693	1,570
1.8	Other (provide details if material)
1.9	Net cash from / (used in) operating	1,941	(6,717)
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire or for:
	(a)	entities
	(b)	businesses
	(c)	property, plant and equipment	(32)	(188)
	(d)	investments
	(e)	intellectual property
	(f) other non-current assets

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

Appendix 4C

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

Consolidated statement of cash flows	Current quarter	Year to date
			$A'000	(nine months)
				$A'000
2.2	Proceeds from disposal of:
	(a)	entities
	(b)	businesses
	(c)	property, plant and equipment	582	1,153
	(d)	investments
	(e)	intellectual property
	(f)	other non-current assets
2.3	Cash flows from loans to other entities	(400)	(399)
2.4	Dividends received (see note 3)
2.5	Other (provide details if material)
2.6	Net cash from / (used in) investing	150	566
	activities

3. Cash flows from financing activities

1. Proceeds from issues of equity securities (excluding convertible debt securities)
2. Proceeds from issue of convertible debt securities

3.3 Proceeds from exercise of options

3.4 Transaction costs related to issues of equity securities or convertible debt securities

3.5	Proceeds from borrowings		8,500
3.6	Repayment of borrowings	(1,973)	(2,876)

3.7 Transaction costs related to loans and borrowings

3.8	Dividends paid
3.9	Other (provide details if material)
3.10	Net cash from / (used in) financing	(1,973)	5,624
	activities

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

4.1	Cash and cash equivalents at beginning of	86	731
	period
4.2	Net cash from / (used in) operating	1,941	(6,717)
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	150	566
	(item 2.6 above)

ASX Listing Rules Appendix 4C (17/07/20)	Page 2
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 4C

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

Consolidated statement of cash flows	Current quarter	Year to date
		$A'000	(nine months)
			$A'000
4.4	Net cash from / (used in) financing activities	(1,973)	5,624
	(item 3.10 above)

4.5 Effect of movement in exchange rates on cash held

4.6	Cash and cash equivalents at end of	204	204
	period

5.	Reconciliation of cash and cash	Current quarter	Previous quarter
	equivalents	$A'000	$A'000
	at the end of the quarter (as shown in the
	consolidated statement of cash flows) to the
	related items in the accounts
5.1	Bank balances	204	418
5.2	Call deposits
5.3	Bank overdrafts		(332)
5.4	Other (provide details)
5.5	Cash and cash equivalents at end of	204	86
	quarter (should equal item 4.6 above)

6.	Payments to related parties of the entity and their	Current quarter
	associates	$A'000
6.1	Aggregate amount of payments to related parties and their	0
	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.

ASX Listing Rules Appendix 4C (17/07/20)	Page 3
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 4C

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

7.	Financing facilities	Total facility	Amount drawn at
	Note: the term "facility' includes all forms of financing	amount at quarter	quarter end
	arrangements available to the entity.	end	$A'000
	Add notes as necessary for an understanding of the
	$A'000
	sources of finance available to the entity.
7.1	Loan facilities	55,263	49,363
7.2	Credit standby arrangements
7.3	Other (please specify)
7.4	Total financing facilities	55,263	49,363
7.5	Unused financing facilities available at quarter end	5,900

7.6 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 balance date:

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 working capital facility of $10 million of which $6.6 million was drawn. This is a committed, non-amortising line 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.

The term debt and working capital facilities both mature on 30 April 2022. The weighted average variable interest rate on the Company's interest-bearing loans is 3.2% p.a. Equipment loans for gin packaging and logistics supply chain equipment

totalling $0.76 million which have an average term of 1.5 years with the average interest rate implicit in the contracts of 4.74% p.a.

Additionally, an overdraft facility of $2.5 million with the CBA is also available at a line fee of 0.5% and an interest rate (currently 3.03%).

8. Estimated cash available for future operating activities

8.1 Net cash from / (used in) operating activities (item 1.9)

8.2 Cash and cash equivalents at quarter end (item 4.6)

8.3 Unused finance facilities available at quarter end (item 7.5)

8.4 Total available funding (item 8.2 + item 8.3)

8.5 Estimated quarters of funding available (item 8.4 divided by item 8.1)

$A'000

1,941

204

5,900

6,104

N/A

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.

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 4
+ See chapter 19 of the ASX Listing Rules for defined terms.