Internal Capital Raising, page-3

Originally, they paid $1.869M in Jan15 (ASX17/11/14) which included "a 603 acres (244 hectares); black river flats with permanent creek frontage and primegrazing land plus 40 mega litre surface dam and high volume bore water licence". Subsequent capital works progressively improved this to (https://www.realestate.com.au/property-livestock-vic-glenfyne-7993738):

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"An extensive farm lane system provides year round access to the well sheltered paddocks, recently re-fenced to ease of management size paddocks.A fully reticulated water system supplied from an excellent electrically equipped bore, provides ample water to all paddocks via 50mm mains.A 78.6 mega-litre groundwater license provides the opportunity to irrigate via pivot. There is also significant surface water dams with huge catchment ability..... Other improvements to the property 3 major hay and machinery sheds, a disused dairy and yards equipped with cattle crush and loading ramps."

In AR18, Ignatios was valued at $2.37M. This compared to $2,223,692 in AR16, $2,220,304 in AR17 and $2,370,220 in AR18, with all figures being net of any impairments. With the EOI closing 15/11, it would appear that Ignatios, as a feeder farm, is no longer considered core to AHF's ongoing feeding /supply needs and /or its earlier announced transition to organics. That said, the commentary to the Q1/19 CFS alerted to the upcoming next few months in the following terms:

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"All farms are in very good condition with strong grass production although meteorologists predict thesummer season will be hotter and dryer than average, which will reflect in the availability and cost offeed in the first two quarters of 2019."

If however the primary feeder farm is potentially taken out of the equation, this could well impact on upcoming feed costs in 19cQ1, 19cQ2, 19cQ3 and beyond, with the following being illustrative of this (ie: feed costs since 2014, per ARs):

	FEED COSTS
1	Year	½Year	Full Year	H2 Split	H1 Split
2	F18		3,339,270
3	H2	2,122,528		2,122,528
4	H1	1,216,742			1,216,742
5	F17		3,086,093
6	H2	1,587,791		1,587,791
7	H1	1,498,302			1,498,302
8	F16		3,439,257
9	H2	2,409,529		2,409,529
10	H1	1,029,728			1,029,728
11	F15		1,404,762
12	H2	1,404,762		1,404,762
13	H1	0			0

So clearly, 5 potential takes from all this:

1)  Ignatios is up for sale via an EOI process (fast paced as it is);

2)  Ignatios needs to recover at least $2.37M (before selling costs) in order to break even on AR18 farm values;

3)  the seasonal outlook is worsening (ie: in reference to upcoming hotter /dryer conditions prevailing);

4)  2019 feed costs will up up;

5) Ignatios either does not fit in with the organics transition or alternatively, is considered sub-optimal to the future (ie: as a feeder farm only, as opposed to being a working /producing farm).