The Australian Agricultural Company Limited provided an update on the impact of the recent flood event in north-western Queensland and the continued impact of the widespread drought condtions occurring across Australia. Flood levels in the Gulf have now largely receded and the Company has been able to undertake on- the-ground assessments of the impact to livestock and infrastructure. Overall livestock losses were less than initial expectations in some cases, and the Company has completed an updated evaluation of cattle numbers found to have survived. As anticipated, the scale of the flooding event has seen cattle distributed over great distances outside of defined property boundaries. It is estimated that tens of thousands of kilometers of boundary fences across the Gulf region have been destroyed and it will be some months before these are fully repaired. Therefore, a complete assessment of cattle numbers will occur as mustering by AACo and company's neighbouring properties is undertaken over coming months. Additional surviving cattle are likely to be identified as a result of that process, which will see cattle transferred both on and off AACo properties. Accordingly, the Company provides the following update, being estimated minimum survival rates, for each of the four individual Gulf properties impacted by the flooding event based on current calculations of cattle that have been identified and assessed to date. The impact on AACo's current herd will not affect the Company's ability to fulfil supply obligations or the rollout of its branded beef strategy, with all animals intended for the Company's premium branded beef supply chain already on feed. While a full assessment of the impact on infrastructure across the approximately 800,000 hectares of affected properties is yet to be completed, a preliminary estimate of the cost of repairing damage to property, plant, fencing, station and water infracture is in the range of $6-8 million. At the same time, as the Company has previously flagged, ongoing extreme seasonal conditions in south-western Queensland and the Barkly in the Northern Territory will significantly increase station operating expenses, particularly grain, feeding and transport costs. The dry conditions and extreme heat have significantly impacted the Company's cost of production, and operating expenses will continue to increase with further deterioration in the season. As stated in AACo's half-year results announced on 19 November 2019, this resulted in additional operational expenses for the first half of the 2019 financial year of $28.5 million compared with the previous corresponding period, and the second half is expected to be substantially in line with that trend. AACo remains fully commited to its current strategy and continues to benefit from a robust balance sheet with overall financial position remaining strong. A further update will be provided as part of the Company's upcoming full-year results in May 2019.