Ann: 2015 AGM Chairman and Managing Directors Address, page-5

@Fidosnos,

Admittedly its not very intuitive, but a BOL investment is not an earnings story.

I think the way to view the BOL situation, in simplistic terms, is as an asset monetisation story...at a rate of around $25m pa.

For context, $25m pa is equivalent to more than half the company's market cap (an a little under half of the company's Net Debt).

Or, put another way, at this rate, the entire Enterprise Value of the Company will have been monetised over a period of just 4 years.

So while the share price is certainly not reflecting it, the monetisation is happening at a fairly brisk clip.

At the current rate, the company will be virtually debt-free in a little over 18 months' time.

And at the end of that process there will still be the better part of $200m of equipment which, assuming it is able to generate a 5% ROA (EBIT/Assets; Peak = 12%, 12-year average = 6.0%), means the debt-free business will be generating around $10m in EBIT, or $25m in EBITDA (Assume $15m D&A charge. D&A Charge currently ~$25m pa, but will fall proportionally as PP&E reduces).

Put that EBITDA metric on a modest multiple of just 4x EBITDA and you get a Market Value of $100m, which is more than double the current level.

Like I say, not a conventional investment, and execution risk is not zero.

But, despite receiving no help from the macro-environment, the process remains steadfastly on the path that needs following.