• Orchard in good health with large amounts of new growth
• Flowering peaked in early November with high fruit set
• Expecting 2025 harvest of 750,000 to 825,000 litres
• Grower leases set to expire on 30 June 2025 with option to renew

Australian Agricultural Projects Ltd has reported its quarterly update for the period ended 31 December 2024. The company advises that the orchard is in good health and displaying large amounts of new growth, with the exception of a frost event in September. Flowering at the orchard peaked in early November in very good climatic conditions, and the fruit set is at the high end of expectations, except in the areas affected by the frost. As a result, the management team's expectations of the 2025 harvest is in the region of 750,000 to 825,000 litres, significantly greater than last year's result of 551,500 litres. This is consistent with 2025 being an 'on' year in the biennial cycle of the orchard and reflects the first time since the commencement of the replanting programme in 2018 that all of the orchard will be in commercial production. The company expects that as the younger trees mature, yields will continue to increase. The first term of the grower leases, which form the foundation of the projects the company manages, are set to expire on 30 June 2025. These leases include an option for a 25-year renewal term, and the company will soon begin contacting all growers to inform them of the opportunity and the process to renew their leases. The company's cash receipts for the December quarter amounted to $1,715,000, which is consistent with management's expectations and reflects the recent high prices for bulk olive oils. Total expenditure remains consistent with management's budgets and projected cash flows, and the company reports a surplus operating cashflow of $385,000 for the three months ended 31 December 2024 and $1,727,000 for the first six months of the financial year. Of these surplus funds, $1,605,000 has been applied against the company's principal debt facility with the National Australia Bank, reducing the facility limit by $125,000 to $5,067,500 and leaving the balance available for redraw. The company also reduced its shareholder loans by $127,000 during the reporting period.

The company's expectations of the 2025 harvest is in the region of 750,000 to 825,000 litres, significantly greater than last year's result of 551,500 litres.