Earnings release
Page 1
Quarterly Update December 2025 Company Snapshot Rivco Australia Limited (ASX:RIV) 1 Net Asset Value (Pre-tax) $1.77 per share SHARES ON ISSUE: 158,815,094 MARKET CAP: $229 million Net Asset Vale (Post-tax) $1.59 per share Gross Dividend Yield1 7.4% (Cash dividend yield = 5.2% p.a., relevant for non-resident investors) 2 $292m TOTAL WATER ASSETS 58.7 GL WATER ENTITLEMENTS 54% LEASED % OF PORTFOLIO 3.3 yrs WEIGHTED AVERAGE LEASE EXPIRY (WALE) 4.2 yrs WALE (INCL. RENEWAL OPTIONS) 6.8% NET DEBT TO WATER RATIO (LVR) Company Performance - 31 December 2025 3 MONTHS 6 MONTHS 12 MONTHS INCEPTION* ANNUALISED* NAV Performance (Pre-tax) + Dividends + Franking -2.0% -1.1% 13.8% 136.9% 9.7% NAV Performance (Post-tax) + Dividends + Franking -1.3% -0.4% 10.6% 117.9% 8.7% Share Price Performance + Dividends + Franking -2.0% -1.4% 15.4% 98.2% 7.6% OPTIONS ON ISSUE: 38,165,498 * For the period 30 September 2016 to 31 December 2025 1. Gross Dividend Yield = cash dividends paid over the previous 12 months, grossed up for franking credits, divided by the EOM share price of $1.44. 2. Cash Dividend Yield = cash dividends paid over the previous 12 months, divided by the EOM share price of $1.44 (relevant for non-resident investors). For personal use only
Page 2
Drier than average conditions have increased demand for water security, with irrigators increasingly seeking longer-term arrangements in response to tightening allocation supply and elevated spot prices. During the quarter, the Company executed 2,000 ML of forward allocation sales for next water year. These contracts deliver visible income to the Company while providing counterparties with greater confidence amid evolving market conditions. The Company also completed a $3 million acquisition and leaseback of SA high security entitlements with an SA-based almond and citrus grower. The lease has a term of five years and commences on 1 July 2026. Discussions are on-going with a number of both new and existing customers in relation to water security products for next season (i.e. from 1 July 2026). 2 Quarterly Update December 2025 Key Highlights • The Company completed its internalisation during the quarter and formally changed its name to Rivco Australia Limited, concluding its transition from an externally managed Company to a fully internalised business. • Southern Basin dam storages continued to decline over the quarter, reaching their lowest December levels since 2020, contributing to reduced water availability across key regions. • Lower Murray spot prices strengthened materially, increasing by 27% from ~$300/ML to ~$380/ML during the quarter, with prices increasing by a further 18% in early January 2026 to ~$450/ML. • In early 2026, market pricing across most High Security spot, lease, and forward products reflected cash yields of approximately 5-7% p.a., representing the highest levels observed since 2020. About Rivco Australia The primary investment objective of Rivco Australia (“the Company”) is to build a portfolio of permanent water entitlements and utilise this portfolio to provide flexible water supply solutions to our Australian farming partners. The Company generates a return by offering irrigators a range of supply solutions including long-term entitlement leases, forward allocation contracts, and spot allocation supply. Rivco Australia Limited (ASX:RIV) Internalisation Update During the quarter, Rivco completed the internalisation of its key business functions, representing a key strategic milestone for the Company. Core internal capabilities across portfolio management, water trading and leasing, finance, reporting, and investor relations, are now fully established and operating smoothly. Systems and processes are now fully embedded to support ongoing operations. During the quarter, the Company formally changed its name to Rivco Australia Limited, reflecting the Company’s transition to an independent operating model. The team also moved into the Company’s new office premises in Unley, South Australia, marking the completion of Rivco’s transition to a fully internalised business. Net Asset Value Update Pre-tax and post-tax NAV declined by 9 cents and 8 cents respectively during the quarter. The decline in NAV during the quarter was primarily driven by the payment of the 3.72 cps fully franked dividend in October 2025, together with one-off costs associated with the completion of the Company’s internalisation. These one-off costs comprised the final cash payment of $3.5 million (exc. GST) and the issuance of 3 million shares to the outgoing investment manager, equating to approximately 3.4 cps on a pre-tax NAV basis. During the quarter, major general security and low reliability entitlements values across the southern Basin reduced by between 4–9% due to recent dry conditions. While this negatively impacted lower reliability asset values, it has supported higher attainable cash yields across the Company’s high security assets, which represent 80% of the portfolio. Lease and Forward Market Entitlement Market Entitlement price movements were mixed during the quarter, with higher reliability entitlements appreciating and lower reliability entitlements softening. While the Ricardo Entitlement Index declined by approximately 1%, yields across higher reliability entitlements remain strong, supporting cash returns and operating income. Government buyback activity continued during the quarter, contributing to a gradual reduction in supply across key regions. Based on a recent update provided by DCCEEW, the Australian Government is planning to recover up to 230 GL of entitlements through existing and expanded water buyback programs in 2026.* * https://www.dcceew.gov.au/sites/default/files/documents/450 -gl- implementation-plan-nov-2025.pdf For personal use only
Page 3
3 Quarterly Update December 2025 Dividends During the quarter, the Company paid a fully franked dividend of 3.72 cps on 31 October 2025, representing its 17th consecutive and increasing dividend paid since inception. Together with the 3.71 cps paid in April 2025, total dividends for the year amounted to 7.43 cps. Based on the 31 December share price of $1.44, this equates to a gross dividend yield of 7.4% (inc. franking). December 2025 NAV (pre-tax) $1.77 per Share December 2025 NAV (post-tax) $1.59 per Share Payments to Associates/Related Parties During the December quarter, the following cash payments to Associates and Related Parties occurred (inc. GST): Capital – Transitional Services Fees* (As per the Services Agreement) $4.8m Duxton Capital – Reimbursements (On-charged Reimbursements) $15k Unfranked PercentageFranked Dividend Paid Rivco Australia Limited (ASX:RIV) December 2025 Debt Drawn $23m Up from $18m in Q3 December 2025 Net Debt Ratio 6.8% Up from 5.4% in Q3 2.3 2.4 2.5 2.6 2.7 2.8 2.9 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.71 3.72 0 0.5 1 1.5 2 2.5 3 3.5 4 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Dec-23 Jun-24 Dec-24 Jun-25 Dec-25 Cents per Share Allocation Market Spot prices have risen materially in recent months, supported by southern Basin storages declining to 53% at quarter end (the lowest December levels since 2020), constrained supply, and sustained irrigator demand. Lower Murray spot prices increased by 27% during the quarter, rising from ~$300/ML at 30 September 2025, to ~$380/ML by 31 December 2025. Price momentum continued into early January, with prices increasing a further 18% to ~$450/ML, reflecting drier than average conditions. Reflecting prevailing market conditions, cash yields across many high security assets in early 2026 were in the range of 5–7% across lease, forward, and spot markets. Cashflow Overview During the December quarter, receipts from customers were lower than prior corresponding periods, reflecting the planned timing of unleased allocation sales to align with peak demand in early 2026. Operating cash flows were also impacted by higher product manufacturing costs, primarily reflecting the payment of annual storage fees during the quarter. This quarter also included the final cash payment of $3.5 million (exc. GST) to the former investment manager following completion of the internalisation. The transition is now complete, and no further fees are payable. The YTD income tax paid of $9.8 million was elevated due to tax being paid on capital gains from entitlement sales to the Government. Investing cash flows during the quarter reflected the purchase of $3.0 million of SA high security entitlements under an acquisition and leaseback arrangement at an attractive yield. The Company also settled $8.1 million of entitlement sales to the Australian Government during the quarter, which were disclosed in the previous quarterly report. Debt At 31 December 2025, the Company has $22.5 million of debt drawn, under its $40.0 million facility, leaving $17.5 million of undrawn capacity. The facility, which matures in March 2027, remains secured against water entitlements and carries a variable rate of BBSY plus 1.3% in fees.* Includes the $3.5 million (excl. GST) final payment made under the Transitional Services Agreement in November 2025. For personal use only
Page 4
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Dec-25 Dam Storage Levels (%) Dartmouth Hume Lake Eildon Blowering Burrinjuck Menindee 54% 46% Leased Unleased 77% 13% 1% 5% 4% Murray Murrumbidgee Goulburn Lachlan Mallee 80% 17% 3% High Security General Security Groundwater 4 Quarterly Update December 2025 ENTITLEMENT VALUE BY REGION PORTFOLIO LEASED PERCENTAGE WATER SECURITY BREAKDOWN Growth of $10,000 – Company Performance Rivco Australia Limited (ASX:RIV) Southern Basin – Dam Storage Levels (15-years) $21,788 $23,690 $19,816 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 $24,000 $26,000 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20 Sep-21 Sep-22 Sep-23 Sep-24 Sep-25 Sep-26 NAV (POST-TAX) TSR NAV (PRE-TAX) TSR Share Price TSR ^ for the period 30 September 2016 to 31 December 2025 Weighted average storages at 31 December 2025 = 53% Long-term weighted average storages at 31 December each year from 1980 to 2025 = 65% For personal use only
Page 5
$320 $365 $380 $- $100 $200 $300 $400 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 Oct-24 Jan-25 Apr-25 Jul-25 Oct-25 Jan-26 Price per ML ($) Lower Murray Upper Murray Murrumbidgee Goulburn Quarterly Update December 2025 DETERMINATIONS CLASS 1-Jan-22 1-Jan-23 1-Jan-24 1-Jan-25 1-Jan-26 Goulburn High 100% 100% 100% 100% 73% Low 0% 100% 46% 0% 0% VIC Murray High 100% 100% 100% 100% 100% Low 12% 100% 16% 0% 0% NSW Murray High 100% 100% 100% 97% 97% General 110% 110% 110% 53% 20% SA Murray High 100% 100% 100% 100% 100% General 0% 0% 0% 0% 0% Murrumbidgee High 100% 95% 95% 95% 95% General 100% 65% 60% 34% 32% This announcement has been authorised for release by the Board of Rivco Australia Limited. DISCLAIMER: This document is prepared by Rivco Australia Limited ACN 611 976 517 (“Rivco”). This document contains summary information about Rivco, and its respective activities current as at the date of this document unless otherwise stated. This document does not contain all the information about Rivco's assets and liabilities, financial position and performance, profits and losses and prospects and does not purport to be complete or comprise all information which is relevant to an investment decision or that would be required in a prospectus or product disclosure s tatement prepared in accordance with the requirements of the Corporations Act 2001(Cth). This document should be read in conjunction with Rivco's other periodic and continuous disclosure announcements lodged with A SX which are available at www.asx.com.au. The release, publication or distribution of this document (including an electronic copy) outside of Australia may be restrict ed by law. This document may contain forward looking statements, including statements regarding Rivco's intentions, beliefs or current expectations about its business and operations, and market conditions. Forward looking statements are provided as a general guide only and should not be relied upon as an indica tion or guarantee of future performance. This document does not constitute investment, tax, legal or any other form of advice or recommendation and was prepared witho ut regard to the specific objectives, financial situation or needs of any particular person. Before making an investment decision, you should make your own enquiries and investigations and obtain your own professional advice. Rivco Australia Limited (ASX:RIV) Water Allocations (%) – 1 January 2026 Water Allocation Prices – 31 December 2025 Lachlan Campbell Portfolio Manager lachlan.campbell@rivco.com.au +61 410 107 158 Lachlan Beech Portfolio Manager lachlan.beech@rivco.com.au +61 414 742 197 Contact Details 5 ^Approximate water allocation prices at the end of each period. Source: Water allocation percentages as per the relevant state resource managers. * For the period 30 September 2016 to 31 December 2025 For personal use only
Page 6
Rule 4.7B ASX Listing Rules Appendix 4C (17/07/20) Page 1 + See chapter 19 of the ASX Listing Rules for defined terms. Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B Name of entity Rivco Australia Limited ABN Quarter ended (“current quarter”) 53 611 976 517 31 December 2025 Consolidated statement of cash flows Current quarter $A’000 Year to date (12 months) $A’000 1. Cash flows from operating activities 2,360 14,240 1.1 Receipts from customers 1.2 Payments for - - (a) research and development (b) product manufacturing and operating costs (329) (853) (c) advertising and marketing - - (d) leased assets - - (e) staff costs - - (f) administration and corporate costs (527) (2,111) 1.3 Dividends received (see note 3) - - 1.4 Interest received - - 1.5 Interest and other costs of finance paid (288) (3,312) 1.6 Income taxes paid (190) (9,762) 1.7 Government grants and tax incentives - - 1.8 Other (provide details if material) - Management Fees - IMA Termination Fee - Transitional Services Fees - - (4,828) (1,089) (3,586) (5,587) 1.9 Net cash from / (used in) operating activities (3,802) (12,060) 2. Cash flows from investing activities - - 2.1 Payments to acquire or for: (a) entities (b) businesses - - (c) property, plant and equipment (47) (47) For personal use only
Page 7
Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B ASX Listing Rules Appendix 4C (17/07/20) Page 2 + See chapter 19 of the ASX Listing Rules for defined terms. Consolidated statement of cash flows Current quarter $A’000 Year to date (12 months) $A’000 (d) investments (2,965) (23,405) (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 8,118 143,320 (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 5,106 119,868 3. Cash flows from financing activities - (2,438) 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 4,500 14,500 3.6 Repayment of borrowings - (108,000) 3.7 Transaction costs related to loans and borrowings - - 3.8 Dividends paid (5,399) (10,164) 3.9 Other (Bank Overdraft) - - 3.10 Net cash from / (used in) financing activities (899) (106,102) 4. Net increase / (decrease) in cash and cash equivalents for the period 2,126 825 4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) (3,802) (12,060) For personal use only
Page 8
Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B ASX Listing Rules Appendix 4C (17/07/20) Page 3 + See chapter 19 of the ASX Listing Rules for defined terms. Consolidated statement of cash flows Current quarter $A’000 Year to date (12 months) $A’000 4.3 Net cash from / (used in) investing activities (item 2.6 above) 5,106 119,868 4.4 Net cash from / (used in) financing activities (item 3.10 above) (899) (106,102) 4.5 Effect of movement in exchange rates on cash held - - 4.6 Cash and cash equivalents at end of period 2,531 2,531 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 2,531 2,126 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) 2,531 2,126 6. Payments to related parties of the entity and their associates Current quarter $A'000 6.1 Aggregate amount of payments to related parties and their associates included in item 1 4,843 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - 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. For personal use only
Page 9
Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B ASX Listing Rules Appendix 4C (17/07/20) Page 4 + See chapter 19 of the ASX Listing Rules for defined terms. 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 Amount drawn at quarter end $A’000 7.1 Loan facilities 40,000 22,500 7.2 Credit standby arrangements 7.3 Other 7.4 Total financing facilities 40,000 22,500 7.5 Unused financing facilities available at quarter end 17,500 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. Debt Facility A Lender: National Australia Bank Max Debt: $40,000,000 Variable Interest Rate: BBSY plus 0.65% p.a. + Facility Fee of 0.65% Maturity Date: 31 March 2027 Secured: Yes 8. Estimated cash available for future operating activities $A’000 8.1 Net cash from / (used in) operating activities (item 1.9) (3,802) 8.2 Cash and cash equivalents at quarter end (item 4.6) 2,531 8.3 Unused finance facilities available at quarter end (item 7.5) 17,500 8.4 Total available funding (item 8.2 + item 8.3) 20,031 8.5 Estimated quarters of funding available (item 8.4 divided by item 8.1) 5.3 Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5. 8.6 If item 8.5 is less than 2 quarters, please provide answers to the following questions: 8.6.1 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: N/A 8.6.2 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: N/A 8.6.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? Answer: N/A Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered. For personal use only
Page 10
Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B ASX Listing Rules Appendix 4C (17/07/20) Page 5 + See chapter 19 of the ASX Listing Rules for defined terms. 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: ................................................................................... Authorised by: ................................................................................... (Name of body or officer authorising release – see note 4) 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. 21 January 2026 the Board of Directors For personal use only