MURRAY COD AUSTRALIA LIMITED — Interim / Quarterly Report 2023

Apr 27, 2023

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Murray Cod Australia Ltd

ASX:MCA

28th April 2023

March 2023 Quarterly Activities Report

The Board of Murray Cod Australia Ltd (‘MCA’ or ‘the Company’) is pleased to provide the following update of operational progress in conjunction with the release of the March 2023 quarterly cashflow report.

Highlights for March 2023 Quarter

• Customer Receipts fell 42% for the quarter

• Cash Reserves of 14.8 million at 31[st] March 2023

• Average weight of fish sold for March 2023 quarter was 1.3kg

• Development application for new hatchery approved

• Further Investment planned in existing hatcheries

• Whitton site development planned 16 ponds earthworks complete

• Electric stunning technology being implemented

• Continued development of more efficient fish diet

• Growth plans remain on track for ten thousand tonnes in 2030

Customer Receipts over fell 42% 3 months to March 23 vs March 22

Receipts fell 42% for the March 2023 quarter compared to the March 2022 quarter.

While demand for the product continues to grow, factors highlighted in our last quarterly update have impacted on fish availability during the period. Supply imbalances now are a result of decisions to reduce stocking levels (against plans) during the summers of 2019/20 and 2020/21 during the pandemic. With a two-plus year growth cycle for Murray cod, shortages of supply have been experienced in larger size grades within the reporting period.

2-4 Lasscock Road, Griffith NSW,2680 www.aquna.com

Murray Cod Australia Ltd ABN 74 143 928 625

Ph +61 269 625 470

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Murray Cod Australia Ltd

ASX:MCA

The Company has had an excellent spawning result during the spring of 2022 and juvenile ponds are stocked for significant growth in fish numbers.

Whilst there are always risks in aquaculture, the new season stocking means the Company is well positioned to capitalise on growing demand with increased fish stocks, a skilled team and cash reserves of $14.8 million on hand at 31 March 2023.

Capital Expenditure planned of $600k for existing Silverwater and Euberta hatcheries

With the recent 2022 spawnings achieving a 250% increase from the 2021 season and experiencing the impact of wet weather during 2022 on development at Whitton, we have decided to invest in our existing hatcheries at Silverwater and Euberta which is planned to provide three main benefits.

1. Potentially increase spawning capacity by 33%.

2. Mitigate earthwork delays to new hatchery site at Gogelderie should there be unfavourable weather conditions during the winter of 2023.

3. Spread the cost of capital of the new hatchery at Gogelderie over the next few years.

16 ponds built at Whitton

Earthworks are complete on the 16 ponds. Pen infrastructure is installed for six ponds and 10 ponds are a new free range design. Both pen ponds and free-range ponds are currently not operational as we await power supply to all new 16 ponds to be completed and tested.

Planned development for an additional 50 ponds to be built over the course of this calendar year and early next year is at an advanced stage. We anticipate the property owner will lodge the Development Application by late Q4FY 23.

Electric Stunning Technology to be used in harvesting

MCA aim to have a positive impact on people’s plates through application of science-based innovation and sustainable farming practices in food production.

To help facilitate Murray Cod Australia’s commitment to furthering ethical practices in food production, we have entered an agreement with Aquaculture technology specialists Ace Aquatec and their Australian distributor Fresh by Design to build and install an in-water electrical stunner.

Murray Cod Australia Ltd ABN 74 143 928 625 Ph +61 269 625 470 2-4 Lasscock Road, Griffith NSW,2680 www.aquna.com

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Murray Cod Australia Ltd

ASX:MCA

Ace Aquatec innovative in-water stunning technology will provide a rapid, humane, and efficient way to stun and process fish while providing a significant reduction in fish handling. The benefits of minimising handling include a reduction in stress to the fish at the point of harvest and minimising risk of injury to harvest crew. We are expecting it will have a positive impact on flesh quality.

We anticipate implementing this technology in the 1st half of 24FY.

Feed Technology Development

In conjunction with aquafeed suppliers, new diets have been developed for our species, targeting different levels of energy and protein ratios. This is expected to optimise the growth performance of our fish stocks.

Growth plans remain on track for ten thousand tonnes in 2030

The Company’s plans remain on track for MCA to meet its target of producing ten thousand tonnes of Aquna Sustainable Murray Cod by the year 2030.

Conclusion

The management and board of Murray Cod Australia are very pleased with the significant progress that has been made operationally and the continued development of our markets. We look forward to providing future updates to shareholders on our continued progress.

2-4 Lasscock Road, Griffith NSW,2680 www.aquna.com

Murray Cod Australia Ltd ABN 74 143 928 625

Ph +61 269 625 470

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Murray Cod Australia Ltd

ASX:MCA

Related party payments

During the quarter the following payments were made to related parties of the entity and their associates as disclosed in Item 6 of the Appendix 4C;

• Mathew Ryan, Managing Director salary and superannuation $96,688

• Ross Anderson, Executive Chairman salary and superannuation $55,250

• Bamford Partners Pty Ltd in respect of Martin Priestley non-executive director fees for $33,128

• Brigalow Enterprises Pty Ltd in respect of Roger Commins non-executive director fees $5,000

• Payments to Aquacomm, a related entity of Roger Commins, as a contract grower on commercial terms for fish which were on-sold by MCA, for $99,334 and

• Payments to Commins Enterprises, which is a related entity of Roger Commins, for engineering and repair works on commercial terms, for $20,348.

ENDS

This announcement was authorised for release by Ross Anderson, Executive Chairman.

For more information contact: Ross Anderson Murray Cod Australia Ltd +61 269 625 470

2-4 Lasscock Road, Griffith NSW,2680 www.aquna.com

Murray Cod Australia Ltd ABN 74 143 928 625

Ph +61 269 625 470

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Rule 4.7B

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

Murray Cod Australia Limited

ABN

74 143 928 625

Quarter ended (“current quarter”)

31 March 2023

Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) cost of sales – contract grower purchases (b) cost of sales – cattle (c) cost of sales – feed and chemical (d) cost of sales – other (e) operating costs (f) advertising and marketing (g) leased assets (h) payroll and employment costs (i) administration and corporate costs Total 1.2 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other – Insurance proceeds 1.9 Net cash from / (used in) operating activities	2,982 <643> <7> <582> <159> <1,513> <146> <44> <1,631> <40> <4,765> 126 <42> 90 6	9,055 <2,950> <265> <2,214> <846> <3,895> <340> <364> <5,075> <415> <16,364> 127 <130> 151 16
	<1,603>	<7,145>
2. Cash flows from investing activities 2.1 Payments to acquire: (a) entities (b) businesses

ASX Listing Rules Appendix 4C (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 months) $A’000
(c) property, plant and equipment (d) investments (e) intellectual property (f) other non-current assets 2.2 Proceeds from disposal of: (a) entities (b) businesses (c) property, plant and equipment (d) investments (e) intellectual property (f) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	<375>	<5,074>
	<375>	<5,074>
3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	95 <225>	701 <558>
	<130>	143

ASX Listing Rules Appendix 4C (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 months) $A’000
4. 4.1 4.2 4.3 4.4 4.5 4.6	Net increase / (decrease) in cash and cash equivalents for the period Cash and cash equivalents at beginning of period Net cash from / (used in) operating activities (item 1.9 above) Net cash from / (used in) investing activities (item 2.6 above) Net cash from / (used in) financing activities (item 3.10 above) Effect of movement in exchange rates on cash held Cash and cash equivalents at end of period	17,000 <1,603> <375> <130>	26,968 <7,145> <5,074> 143
		14,892	14,892
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts		Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)		14,933 - <42> 1	7,033 10,000 <34> 1
		14,892	17,000
6. Payments to related parties of the entity and their associates 6.1 Aggregate amount of payments to related parties and their associates included in item 1 and Item 2
			Current quarter $A'000
			310

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments

All payments at item 6.1 are made for Directors Fees or in respect of contractual arrangements on arms-length terms.

ASX Listing Rules Appendix 4C (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

7. Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 7.1 Loan facilities 3,011 7.2 Credit standby arrangements 2,620 7.3 Other (Equipment Finance Facility) 2,416 7.4 Total financing facilities 8,047 7.5 Unused financing facilities available at quarter end	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
	3,011	-
	2,620	359
	2,416	2,416
	8,047	2,775
		5,272

7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.

7.1 Westpac Bank Bill Business Loan, facility term 5 years, Variable interest rate, secured by land and water assets.

7.2 Westpac Overdraft Facility and Credit Card Facility, Variable interest rate, secured by land and water assets.

7.3 Westpac Equipment Finance Facility.

8.	Estimated cash available for future operating activities	$A’000
8.1 8.2 8.3 8.4 8.5	Net cash from / (used in) operating activities (Item 1.9) Cash and cash equivalents at quarter end (Item 4.6) Unused finance facilities available at quarter end (Item 7.5) Total available funding (Item 8.2 + Item 8.3) Estimated quarters of funding available (Item 8.4 divided by Item 8.1)	<1,603> 14,892 5,272 20,164
		13
8.6	If Item 8.5 is less than 2 quarters, please provide answers to the following questions: 1. Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?
	Answer: NA
	2. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
	Answer: NA

Answer: NA

1. Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer: NA

ASX Listing Rules Appendix 4C (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Date: 28[th] April 2023

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Authorised by:

Ross Anderson Chairman

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 4C (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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