Ann: GRR - Quarterly Report for 3 months ended 31 March 2018, page-5

Property ROC JV: I'd suggest that GRR may use of significantly more cash reserves than articulated in Q1 report to complete the ROC Property Toorak land settlement (say 90% being $8.415m ) and development as unlikely the joint venture partner has significant funds to complete its share of settlement and construction costs). Council planning approvals are unlikely to be quick. IMO Lumley Court 5 prestige apartments using a 3 level building plan - assume Gross Revenue for this project may be north of $30m. These projects may take say two years to get to practical completion and settled. If you were to assume each project delivers at least a 15% return on cost and a 12%p.a. on any loan funds and get thus completed and sold within 18 months the ROE should be reasonably robust. I am hopeful GRR does not allocate more than $25m at any one time to the JV in capital and first mortgage loans.

Well done Miningnut on your Q1 financial estimates. IMO the Q1 operating business and actual shipments should have delivered quarterly EBIT of $30m plus for period to 31/3/18. With two shipments loaded and vessels heading to Asia in Q2 plus another vessel arrival imminent then similar shipment volumes may be achieved for Q2 as Q1. The vagaries for Q2 estimates maybe the deferred maintenance shut-down and producing pellets for Q2 shipments as the 31 /3 Pellet stock pile was 280kt thus April production will be critical.