Rain fed cropping is not new to the NT, where crops such as corn, sorghum and hay have been produced for decades, but rain fed cotton has also been introduced more recently, with some extraordinary results being achieved. Crop yields of more than double the long-term average of ‘traditional’ Southern rain fed cotton production regions have already been achieved.

When additional expertise is applied through management from the experience in rain fed cotton production built up over decades, as well as with the development of a better overall farming system, the yields achieved to date will be surpassed, potentially to a significant degree as evidenced by the CSD variety trial referred to previously.

Recognition that two future cotton gins are to be constructed in Australia's north. One, located within 200km of the asset is already under construction with initial suggestions that it will be completed prior to the 2022-23 summer growing season. Currently, growers in the Northern Territory truck cotton bales 3,000+ kilometres to reach gins on the Eastern Seaboard of Australia. The estimated savings of a cotton gin being established in the North are significant.

Northern Territory government has shown significant investment and support for the agricultural development of the state to drive underlying state growth. Northern territory is the fastest growing raw value of agricultural products state in Australia over the last 10 years.

Strong target returns of 17-20% IRR. Upside to increase forecast development permit and soil suitability permitting. Upside to potentially utilize ground water component of the asset. Manageable scale of development well within asset manager scope.

Potential to provide significant benefit to pre-existing cattle industry by supplying cotton seed as a by-product of cotton lint production.

Australian cotton is an extremely mature industry with competitive advantages compared with other production leading countries.