Ann: 2018 AGM - Chairman's Presentation, page-2

This AGM is a joke. I struggle to fathom that the Directors are still spruiking BLA with a straight face. So many questions remain outstanding. Hard to imagine, though I'm now more convinced that this is a bigger basket case than previously thought. 

Oaktree apparently has the right 'attributes' as a partner - really? Is that their market leading ability for predatory distressed debt and loan-to-own scenarios? If they were genuinely the best partner, why have they got an expensive debt instrument with guarantees over all BLA assets? IF it was a great deal, surely an equity investment would have sufficed?

Also interesting how the BLA Directors (without any shareholder approval*) entered into this value-destructive convertible debt instrument at a cost of 15% p.a., noting the rationale today seems that the Board is comfortable they will gain access to an additional ~$1.95 billion in co-investment dollars on the back of the $50m investment to support sufficient management & Performance fees - noting overall returns to investors since inception are only 13.9% as per the FY18 results and a complete lack of any ability to raise institutional dollars.

Also, we no longer get any profit guidance to determine a view on any of these issues? All we hear is management fees greater than costs. Yet not in a position to give any guidance. With the share price now below $1.00, I think the investors have made their own determination of where this flea-ridden dog will be heading.

It would be fantastic if these guys could just once, give an open and honest reflection of the state of the business. Water rights seems to be a good asset, the rest, a complete basket case. Directors, past and present, couldn't lie straight in bed.