Ann: FY18 Results Investor Presentation, page-2

The new Bendigo mill is enormous - 350kt a year. The silos in the artist's impression are massive. RIC obviously think there is sufficient demand along the Midland Highway corridor Geelong-Ballarat-Bendigo and radiating out. The large new mill at Lara is one end, Bendigo the other.

It is spending as much on the Tasmania aqua feed mill - Bendigo $50m, Tas $50m. Together a quarter of market cap. Gutsy call!

We appear to be entering drought and RIC will benefit as farmers supplement low quality feed to keep breed stock alive.

I see M&A potential in rendering, despite the ingredient supply problems in Maroota. The sector is fragmented with a number of weak players. It is unclear how much benefit there is to RIC in internalising animal protein supply, but there it is. Tim Hart knows the territory.

I think RIC is struggling to properly manage Novacq. This isn't a criticism of competence, more of managing a global disruptive innovation of unknown scope. It demands further scientific studies, field trials and blanketing IP protection. This cannot be hurried and mis-steps are easy.

The outlook is positive. I stand by my BUY call, even though RIC has traded in a narrow band 1.25-1.50 for two years now.

Ash