presentation to hong kong investors

Slide 12 of this presentation speaks volumes (intended pun) about the organic growth opportunity presented to ORI.

To save readers time, I'll interpret:

The graph plots, over the course of the past 30 years, demand for Ammonium Nitrate in Australia compared to production of iron ore and coal over this period.

Strikingly, compound annual growth rates for AN demand average 9%pa, significantly higher than that of iron ore production (CAGR of 5.8%pa) and coal production (CAGR of 4.4% pa)

That non-linear relationship, added to the fact that ORI is able to participate in that sort of demand dynamic by funding it internally without recourse to shareholders while at the same time increasing returns to shareholders, makes it a very attractive investment proposition, I'm my view.

Especially given a valuation of sub12x P/E and a little over 7x EV/EBITDA.

I am not as fully invested as I would like to be in ORI, and I sense/hope/anticipate that China lurching and a resources sector rolling over in coming weeks/months will present one of those of once-a-decade buying opportunities.

Prudent Investing

Cam