16% Better than consensus, page-7

The distinction between maintenance capex and growth capex is tricky with TGR because of the growing cycle being around 3 years. It appeared the market had no idea a few years ago and failed to price any of the growth capex expenditure in. Not so much the case now.

I think TGR is very well run, but potential stranded capex and return on new capex in light of warming waters has to be carefully considered by both management and investors. I think they have to keep diversifying geographically within Tasmania including to deeper water.

A very good business, well run, but it’s not a no-brainer can’t fail scenario.