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For personal use only NAMOI CONON Growing Together QUARTERLY ACTIVITY REPORT AND APPENDIX 4C - NAMOI COTTON LIMITED ( ASX : NAM ) ASX RELEASE 28 September 2021 Namoi Cotton Limited ( ' Namoi ' or the ' Company ' ) is pleased to provide its Appendix 4C cash flow statement for the quarter ended 31 August 2021 ( ' Q2-22 ' ) , along with the following update . Business activities in the Second Quarter ( Q2-22 ) There was no material change in the activities of the Company during Q2-22 . The ginning season is now largely complete with our ginning volumes reaching ~ 500,000 bales to date . This is in line with our forecast in the investor presentation to the market on 20 July 2021 and compares with 124,000 bales last season . Cashflow has increased accordingly however , the seasonality remains comparable to prior seasons with payments for product manufacturing and operating costs being weighted to our first two quarters ( i.e. the 6 months ending 31 August ) , whilst receipts from customers and maintenance costs are weighted to our third and fourth quarters . The Company's Q2-22 cashflow covers the height of the 2021 ginning season including the sale of ginning services and the purchase of by - products . Payments to related parties represent payments made to Grower Directors for the supply of cotton lint , by - products and services less the cost of ginning cotton . These payments are included within product manufacturing and operating costs and were made in the ordinary course of business . Receipts from customers totalled $ 176.3 million during Q2-22 ( Q2-21 : $ 50.3 million ) and compare to product manufacturing and operating costs of $ 162.2 million for the same period ( Q2-21 : $ 53.3 million ) . Staff plus other administration and corporate costs totalled $ 5.7m in Q2-22 ( Q2-21 : $ 4.0 million ) . Net cash inflow from operating activities in Q2-22 totalled $ 8.1 million ( Q2-21 : outflows $ 7.0 million ) . Material Developments The Company provided a market update on 20 July 2021 in which it announced : its outlook for Australian cotton production to be 4.2m bales ¹ for the 2022 season , from which ~ 1.0m bales are forecast to be ginned by Namoi in its Financial Year 2023 ; and a $ 4.1m upgrade in ginning and storage facilities ; and the signing of a Memorandum of Understanding with Kimberly Cotton Company for the development of a new gin in Kununurra , WA . 1 ABARES forecast ( June 2021 )