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	28 February 2021

Consolidated statement of cash flows	Current quarter	Year to date (12
			$A'000	months)
				$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	9,694	79,724
1.2	Payments for
	(a)	research and development
	(b)	product manufacturing and operating	(6,012)	(72,951)
		costs
	(c)	advertising and marketing
	(d)	leased assets
	(e)	staff costs	(2,388)	(11,017)
	(f)	administration and corporate costs	(344)	(1,826)
1.3	Dividends received (see note 3)
1.4	Interest received	2	8
1.5	Interest and other costs of finance paid	(354)	(1,627)
1.6	Income taxes paid
1.7	Government grants and tax incentives	518	2,088
1.8	Other (provide details if material)
1.9	Net cash from / (used in) operating	1,116	(5,601)
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire or for:
	(a)	entities
	(b)	businesses
	(c)	property, plant and equipment	(98)	(286)
	(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 (12
			$A'000	months)
				$A'000
2.2	Proceeds from disposal of:
	(a)	entities
	(b)	businesses
	(c)	property, plant and equipment	1,663	2,816
	(d)	investments
	(e)	intellectual property
	(f)	other non-current assets
2.3	Cash flows from loans to other entities		(399)
2.4	Dividends received (see note 3)
2.5	Other (provide details if material)
2.6	Net cash from / (used in) investing	1,565	2,131
	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	(2,599)	(5,475)

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	(2,599)	3,025
activities

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

4.1	Cash and cash equivalents at beginning of	204	731
	period
4.2	Net cash from / (used in) operating	1,116	(5,601)
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	1,565	2,131
	(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 (12
		$A'000	months)
			$A'000
4.4	Net cash from / (used in) financing activities	(2,599)	3,025
	(item 3.10 above)

4.5 Effect of movement in exchange rates on cash held

4.6	Cash and cash equivalents at end of	286	286
	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	513	204
5.2	Call deposits
5.3	Bank overdrafts	(227)
5.4	Other (provide details)
5.5	Cash and cash equivalents at end of	286	204
	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	55,065	46,715
7.2	Credit standby arrangements
7.3	Other (please specify)
7.4	Total financing facilities	55,065	46,715
7.5	Unused financing facilities available at quarter end	8,350

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 $4.15 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 $0.56 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 3.75%). $0.227 million is utilised but offset against cash in 5.3 above.

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

1,116

286

8,350

8,636

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.

Appendix 4C

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

8.6.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

Answer: N/A

.

8.6.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer: N/A

Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered.

Compliance statement

1. This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
2. This statement gives a true and fair view of the matters disclosed.

Date:

29 March 2021

Authorised by: Board of Namoi Cotton Limited

(Name of body or officer authorising release - see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.
3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
4. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board".
   If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

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