Good afternoon, and thank you for joining the Midway H1 2023 results webcast. I'm Tony McKenna, CEO and Managing Director of Midway, and I'm here with Michael McKenzie, the Group CFO. I'll give you a brief rundown of the key points from the investor pack that was lodged with the ASX earlier today, and then Michael and I will be very happy to answer any questions via the chat box. If we switch over to the presentation now. The results show the early stages of Midway turnaround. The good top-line numbers with revenue up 18% are based on positive contributions from all business units with the exception of Tasmania. It's also very pleasing to achieve a break-even EBITDA-S result in an environment of rising supply costs and lower bone dry component. The successful sale of the Victorian plantation estate to MEAG was a highlight of the H1. The AUD 12.3 million book profit on the sale of plantation estate drove a positive NPAT outcome. It has also enabled Midway to repay AUD 21.7 million, eliminating all long-term debt. Net tangible assets has also further strengthened to AUD 1.51 per share. Despite these positive numbers, operating cash flow remained negative in the H1 2023 due to high operating costs, including fuel, labor, and wood supply, and a net working capital build from June 2022 of AUD 8.3 million. The board has adopted a prudent approach to capital management and deferred consideration of the intended fully franked special dividend of AUD 0.095 per share at this time. The board will revisit its decision on dividends at the end of FY 2023. It remains the company's intention to pay shareholders the special dividend. The board believes that ensuring availability of working capital is one of the levers that is in its control. In the current global economic circumstances, the timing of vessels can change with big impacts on the company's working capital requirements. Inventory may need to be held longer to deliver into increased orders. Having been through periods of limited demand and then supply production limitations, it is essential that production and sales aren't constrained by working capital limitations as we move into more favorable conditions. To the key drivers of the result. The major contributions to growth came from improved volume and price across the business and a better FX position. Customer demand was stronger than the previous corresponding period. Midway is confident of significantly improving pricing for the calendar year 2023. I'm particularly pleased that the Tiwi's South West Fibre, Queensland, and GeelongPort all recorded positive business unit EBITDA-S contributions. Midway Tasmania had a challenging H1 with significant wet weather hampering harvest and haul operations and managing the commissioning of the new mill at Bell Bay. In December, we used the last of the out of the money FX hedges at AUD 0.75 and now move into a more favorable FX hedging position. Unfortunately, some external headwinds continue to drag on EBITDA. Supply costs increased significantly in the half. Midway was required to pay suppliers higher wood fiber prices, passing through part of the wood chip price uplift. Ongoing COVID supply chain disruption and the war in Ukraine increased labor and fuel costs. The other major external factor affecting Midway results was the wet weather caused by the prolonged La Niña weather. Particularly in Tasmania, the wet weather resulted in interruptions to harvest operations and a lower bone dry factor. For the H1. Other key drivers. The graphs in this slide show that headwinds that impacted operating margins in the H1 2023, a lower bone dry factor and higher costs from fuel and labor. The outlook on these supply costs are that fuel is expected to remain stable and labor costs are set to remain high in this inflationary environment. Management will, of course, continue to actively manage these factors to minimize the impact on EBITDA and cash flow. The Bureau of Meteorology has forecast that weather patterns will trend away from wetter La Niña conditions towards drier El Niño conditions over the course of calendar year 2024. Drier El Niño weather conditions will contribute towards a higher bone dry component on the PCP. I'll now look at the trading outlook. The H1 2023 results shows early signs of the turnaround in Midway's operating performance. The global wood fiber market is strong. We expect to see higher volumes and prices on a PCP basis in the H2 2023. Midway has supply agreements for all of its expected hardwood fiber production for this calendar year. We expect negotiations will soon be finalized for the benchmarking Eucalyptus globulus price for calendar year 2023 at around $200 per bone dry metric ton, a $20 increase on the PCP. We've already seen a $25 increase in the Eucalyptus nitens price and a $23 price increase in the North American softwood benchmark price. The strong growth in demand from China saw growth in exports from Australia. Supply chain constraints caused Australia to lose market share. Customers continue to buy a range of wood fiber products from Midway for the China market, including regrowth thinnings from Tasmania. Japan also continues to provide steady demand for higher quality wood fiber from Geelong and Portland. The emergence of Indonesia as a net wood fiber importer is also important. Midway exported its first wood fiber cargo to Indonesia in early February and is contracted to do more vessels in this calendar year. Industry experts expect that the continued gap between regional supply and demand will underpin wood fiber export prices into the future. I'll now turn to the capital management and balance sheet. Since the strategic review started in March 2022, the company has been investigating ways to generate total shareholder returns that reflect the underlying value of its assets. A key outcome of that approach was the sale of the Victorian plantation estate to MEAG. AUD 97.3 million in upfront sales proceeds has allowed Midway to repay all of our long-term corporate debt and substantially pay down the expensive Strategy financial liability. The elimination of net debt is particularly important in a rising interest rate environment. Less visible, but nonetheless important, is that the sale of the plantation asset will take biological assets off the balance sheet and remove annual P&L revaluation volatility. It remains the company's intention to pay the special dividend, and the board will consider timing at the end of FY 23. A stronger balance sheet. The sale of the Victorian plantation estate has also improved our balance sheet. Midway has a strong current ratio of over two times. Net tangible assets of AUD 134 million, or AUD 1.51 per share, compare with AUD 124.8 million, AUD 1.41 per share, at the end of June 2022. Retaining cash within the business will ensure the company can ramp up production, build and sustain higher inventory levels, and fully exploit sales opportunities in stronger export markets. Onto the company strategy. Over the last 12 months, I've focused on three priorities to generate total shareholder return reflective of the company's underlying asset value. Firstly, lifting operating performance. Secondly, leveraging our core capability for future growth. Thirdly, maximizing the value of our assets. We are making good progress in each area. On operating performance, we've seen a positive EBITDA-S contribution from all key business units, with the exception of Tasmania and our plantation segment. We expect Midway Tasmania to turn around in the H2 with much better weather conditions expected and the Bell Bay Mill in full operation. The plantation business unit has been repositioned with the sale of the plantation estate to MEAG, and the H2 will see it bed down its new management fee model. We've exited the loss-making Midway Logistics business. On leveraging for growth. At North Shore Geelong, we're establishing a softwood line and have progressed the grain terminal proposal. We've commenced wood fiber shipments from Bell Bay in Tasmania, progressed the second rotation on the Tiwis, and gained a foothold in the carbon management sector. In maximizing the value of our assets, we've sold surplus assets and the Victorian plantation estate all above book value, and we're working on initiatives to add value to our Geelong site. After 12 months in the job, I am very clear what needs to be done to create shareholder value, and I'm confident that we're making strong progress. There are three key areas where I see short and longer-term growth opportunities for Midway. We must continue to expand our core business. Woodfibre production and export will remain the engine room of the company for the foreseeable future. Expansion of the Victorian plantation estate and its management, expansion into regrowth thinnings in Tasmania, and the new softwood opportunities underpin future growth. The proposed grain terminal at North Shore leverages our existing asset base and commodity capabilities. The grain terminal will add value to our property asset and increase utilization of our take-or-pay commitment with GeelongPort. We've made good progress with counterparties on project design and management, and with the planning of the site. We're engaged with counterparties and GeelongPort on negotiating commercial terms. Thirdly, carbon management is a natural complement to the Midway value chain. We are very well placed to be leading generators of high-quality carbon emission offsets, creating ACCUs for global and domestic investors in the next 10-20 years. Midway's strategy is aligned with some fundamental growth strengths. Firstly, the ongoing regional deficit in the supply and demand balance for wood fiber. China's demand has structurally increased with new virgin fiber mills in operation. More mills are under development. We are also seeing signs of biomass demand tightening the supply-demand balance for wood fiber. This places Midway in the box seat to leverage wood fiber supply and demand. Secondly, the global push for net zero emissions by 2050 will drive increased demand for carbon offsets. As I've said, Midway is ideally placed to be a large-scale generator of high-quality Australian Carbon Credit Units. The Labor government's proposed legislation for the Safeguard Mechanism is expected to heighten demand for offsets. Midway has three scale projects underway to leverage its core capabilities and capitalize on this market. The Tasmanian Carbon Aggregation Project, the Victorian Plantation and Carbon Management, and the Tiwi Second Rotation are all progressing well. Midway is building a strong presence in the carbon offsets market and securing future revenue streams for the company. In summary, these results show that the Midway turnaround is great, gaining traction. Trading conditions are stronger and will drive improved financial performance. We have clear strategic priorities aligned with favorable macro trends, and we will continue to focus on maximizing shareholder returns. We understand that some shareholders will be disappointed that we've not declared the intended fully franked special dividend at this time. I believe it's a prudent approach to capital management, and it will ensure that we are able to confidently build inventory to deliver into our supply agreements without being vulnerable to working capital constraints in the event of customer vessel delays. I'm confident that our revenue, operating cash position, and earnings will improve in calendar year 23 on the back of higher export prices, volumes, and a better FX position. Midway will also receive the next tranche of the MEAG sale proceeds in September this year and the final tranche of the sale proceeds around September 2025. I'll now turn to questions via the chat box. The Q&A box. The Q&A box in the Zoom screen. Thanks. We've got several questions. The first from Chris Honeywill. How will Midway qualify for ACCUs through its operations, such as the Tiwi Islands? How many ACCUs are anticipated? Can Midway distribute ACCUs to shareholders as dividends? There's four ways that you can earn plantation ACCUs across four different schedules. The two that we're focusing on are Schedule 2, which is a long, short rotation to long rotation, and Schedule 3, which is a retention of a plantation operation where it wouldn't otherwise occur. We are doing some Schedule 1, which is greenfields to plantation. Through those three methods, the government regulator calculates ACCUs that accrue for a particular activity. We go through the process of doing and earn the ACCUs either for ourselves or for our clients or a combination of that. Can we do ACCUs to investors? That's something that we don't have the capability or desire to do. It would overly complicate things, what we're doing is building revenue streams from managing the process of managing ACCUs, from earning a share of ACCUs ourselves, and from developing projects where ACCUs make the project economics work to support new plantations going in. There's a follow-up question from Chris Honeywill. For MEAG, where will the new R1 estate be located? What pricing is provided for timber under the strategy? The new R1 estate. Not exactly sure. Yep. Sorry, I'm just reading it on the screen. For MEAG, we're looking in the Otways and Heytesbury regions. We have made an offer and settled our first acquisition, around AUD 5 million invested in that. We have two other properties that we have MEAG approval to submit offers on and a number of others in the pipeline. They're in the, as I said, in the Otways and Heytesbury region that'll naturally feed into the Geelong site. Final question from Chris Honeywill. The AUD 200 million investment, I think the heart of the question is, where and when will it occur? Yeah. As I was saying, we've already settled on the first AUD 5 million of that. Over the next five years, we'll be looking to invest that, as opportunities present. We have a good pipeline, and we're working through the process with offers out at the moment. The next question is from Campbell Morgan. Can you please detail how much hedging at AUD 0.75 cost you in 1H 2023? Absolutely. Michael? I can take that one. Thanks for the question, Campbell. As we know, that was a long-standing position that was taken out, nearly two years ago, when the forecast FX was going up to AUD 0.80. Unfortunately, the average was AUD 0.67 over the period, so it ended up costing us between AUD 10 million and AUD 11 million to the bottom line at our current estimates. Next question, comes from Robert Thompson. What are you paying approximately per ton at the farm gate for uncontracted supply? That varies across our different products, our different sites, mill gate prices and mill gate prices are also confidential information because we've got a range of suppliers and a range of different arrangements. Question from David Zhu. In our view, how much further can Vietnam increase their capacity? That's a really good question. We don't have a definitive answer. There's competing land uses each year. We think that they're reaching maximum production. Over the last year, we saw a big increase in what was harvested and exported because the prices were very strong. It remains to be seen how much of that was in Vietnam, around the middle of last year and saw that they're cutting trees younger and younger, so that'll be eating into the maturity profile of the Vietnamese crop. All that area will have been replanted and will be coming back through. There's several questions from Charlie Kingston and Anthony Back. I'll take Charlie's questions first. The first question is to you, Tony. Charlie says, "You spoke a lot about realizing shareholder value. Yet the only way shareholders can access through the share price after today's sell-off is chronically below NTA and IPO price. How do you intend on fixing that? Are you still investigating the natural owner Midway? Clearly, the listed market has fell. Some fair points in that. Particularly aware of the gap between NTA and our market capitalization, and it's something that we constantly conscious of to. Yes, we're always open to thinking about the natural ownership. It's part of the way I think about things inherently. To increase the share price, we have to get that up. We have to be executing on the growth opportunities, and then we need to be thinking about the other initiatives which have included to date, sale of assets that the market doesn't appear to be appreciating the value of. Obviously, it's an ongoing exercise. Second question from Charlie: Can you explain how Midway is leveraged to increase prices given some cheaper suppliers and other costs remain elevated? Barring all else equal, including FX, will Midway finally make an operating profit this year? We believe so. Everything is lining up. As I said in the talking points, we do have better prices that we're very confident will be agreed and contracted. We have contracts for volume. The FX rate will be more favorable than what we've had last year. There's a number of other factors that are working that say, absolutely, we should be profitable for the H2. Charlie's got three quick questions. Can you explain the revenue model of MEAG? Do you get paid a% of funds under management performance fees, et cetera? With MEAG, it's a fee per hectare. There's an establishment fee, which is a higher fee on establishing new plantations in the greenfield. Then there's the ongoing management fee that applies across the brown and greenfield sites. There is a small component of it which is leveraged to what we can do with carbon in the existing plantation. Primarily it's a fee for service across hectares. another question from Charlie: Can you elaborate on the delay of the Geelong grain. A little bit limited in what I can say, but we are talking to counterparties who are very credible. We need to have a three-way agreement between ourselves, them, and Geelong Port. Geelong Port have been a little bit delayed and distracted with their sales process, but we've had some constructive re-engagement just recently. We're expecting some progress on planning as well in the coming weeks. Last one from Charlie Kingston at the moment. Can you guarantee that you will pursue no further growth CapEx until you've paid a dividend? Not my position to make any guarantees on dividends. That's a decision for the, for the board. We don't, at this stage, envisage any major CapEx projects. There are some small CapEx projects in line with what we'd normally spend in a normal year. The softwood project a little bit. There may be some required up front on the grain that we've flagged previously, depending exactly on how that is structured. We've got three questions from Anthony Back. The first one covers the Grain Terminal discussions, which I think you've covered off in response to Charlie's question. The second one was how much revenue did Midway generate from carbon management in the H1? For the H1, it was limited to the fees that MEAG are paying, which have only just started flowing for the management of their, well, the estate that we're selling to them, or have sold to them. We're building the business model in Tasmania and the Tamar Valley is still early stages in the revenue model. All right. Last question from Anthony at this stage. Can you outline what the AUD 12 million in borrowing in the half was used for? Yeah, I can take that question. That AUD 12 million is really part of our working capital funding. As you can see, we had a working capital build of AUD 8 million to December, which is included in the operating loss. Some of that is funded by our working capital facility, which was drawn down by AUD 13 million at December. Our net debt position, excluding the AASB 16 liabilities, was AUD 12 million cash surplus, which is positive. Some of that working capital was receivables. We had about AUD 13 million-AUD 14 million of receivables that was realized early in January. At the end of January, we were actually in a net cash position of AUD 24 million. Really it was used for working capital. Just a Follow-up question from Robert Thompson about timber farm gate supply price. He's asking, "What has been the approximate percentage increase in farm gate supply price over the last 12 months? I can probably take that one. You know, in the last half versus the prior corresponding period, on average, some of our timber prices might have gone up AUD 10- AUD 15 per GMT. That is made up of a number of components, of, you know, 50% might be stumpage, which is linked to price. The remaining 50% is really fuel, CPI and labor increases. And that sort of hurt the margins for the half as we flagged. Going forward, as we flagged, we expect some of the key drivers of the business to turn around, so that's what will improve the performance of the business. Follow-up question from Campbell Morgan. "Thanks for the previous response. Based on your reported results, your underlying EBITDA ex hedging in the half was around AUD 11 million. Is it reasonable to assume this is the basis for the H2 prior to the implementation of the AUD 20 per ton woodchip price increase? Thanks, Campbell. Don't wanna preempt exactly what our results are gonna be. We're gonna, obviously, if we go through the key drivers of the business, volume, we expect to be a slightly favorable price. We expect to be favorable FX. We expect to be favorable as we flagged. Bone dry, we also expect to be favorable. As we flagged, we expect a better H2. I'm not gonna give exact guidance on what we expect. All I can say is that the four key drivers of the business are looking favorable in the H2. Question from Craig McGrath. It's probably another one for you, Michael. "I believe your receivables increased significantly. Why? Is there any significant credit risk? Thanks for the question, Craig. No, the short answer is no. There's two things in the receivables. One is the MEAG deal. We've got tranche four and five settling in September 2023 and September 2024. A large portion of the receivables on the balance sheet are linked to a contract with MEAG, just pending settlement of the final two tranches. We also have some trade receivables which increase, you know, up to AUD 14 million or AUD 15 million on the balance sheet. That's low credit risk on the basis of the fact that all our vessels, you know, particularly from China, are linked with LCs, the credit risk is low and, you know, received in January 2023. Question from Emma Allsop about the grain terminal project. This relates to the question: "Is there a timeline for the project? It's a fair question. I'm very keen to get it done as soon as possible. It will, it'll take the time that it takes to bring the multiple parties together to a plan on a agreed position. Emma's also asked whether you can give some details about the expected scope of the grain project. For example, amount of grain stored. Again, at this stage, that's confidential information that we're working with our partners. Just scrolling down the list of remaining questions. Anthony Back has asked, "What is the status of the Second Rotation in the Tiwi Islands? Yeah. We're working on the structuring of that. There's a couple of opportunities that have presented themselves that we are pursuing that could be very interesting for the company. It's. We had initial engagement with the Tiwi people around the consultation for that Second Rotation. We had the chairman of the Tiwi Land Council and the chairman of the Tiwi Plantation Corporation down in Geelong, and we've spent some time with them last week. One of the project staff is up there at the moment working with them on some consultation and around the structure that we pursue the project through. Charlie Kingston got a further follow-up question around dividends, and he's asking what your preference is to pay a dividend before any growth CapEx. It would depend on the project. If that's a really compelling project, then it's certainly obvious that the right way to go is to pay shareholders dividends. Were there a really compelling project then that's something the board and management would have to consider. Thanks. I'm just waiting to see whether we get any further questions. No further questions at this stage, I think that completes the Q&A session. Tony, is there anything else you want to conclude on? No, other than to thank you all for your attendance and attention. I understand it's a busy day in the market and, appreciate your interest in the company and, hopefully look forward to your support going forward and delivering you some results that really do create some shareholder value. Thank you. Thank you very much.