a)  fully paid ordinary shares of NuStar using the following formula: i)  up to 30 June 2004 at $0.05 per NuStar Share; and ii) after 30 June 2004 but before 30 September 2004, the lower of: 1. $0.065 per NuStar share; and 2. 85% of the volume weighted average price of the NuStar shares on ASX during the 30 day period  prior to the Conversion Date provided that the minimum strike price calculable is $0.05; or b) fully paid ordinary shares of the Company at $0.08 per share. 45 Consolidated Company 30 June 2004 $’000 30 June 2003 $’000 30 June 2004 $’000 30 June 2003 $’000 Assets pledged as security The carrying amounts of assets pledged as security are: Secured loan - Market value of listed securities 18,452 - 18,452 - First Mortgage - Property, plant and equipment - 8,380 - 7,253 - Other  fi  nancial assets - 4,891 - 25,607 Finance Lease - Plant and equipment under  fi  nance lease 759 4,000 759 4,000 Floating Charge - Cash and restricted cash 3,067 4,170 2,725 4,168 Receivables - 3,688 - 3,688 Total assets pledged as security 22,278 25,129 21,936 44,716 At the Annual General Meeting of NuStar held on 12 December 2003, shareholders approved the issue of shares to  Claymore should Claymore elect to convert the convertible note into fully paid shares in NuStar. Following this, Claymore  converted $100,000 of the convertible note into 2,000,000 shares in NuStar which were issued on 23 December 2003. On 28 November 2003, the balance of the $7 million RCF Facility was converted at $0.08 per share into 87,500,000 fully  paid ordinary shares. Interest and fees due were also converted at $0.08 into 8,184,932 fully paid ordinary shares. (4) On 9 July 2003, $5 million of the RCF Facility was repaid on receipt of the proceeds of the sale of the shares in  Dioro Exploration NL. (5) On 8 May 2004, the Company entered into a margin lending facility with Galviston Pty Limited for $3,500,000. The amount is secured over the investment in NuStar. The market value of NuStar at 30 June 2004 was $18.4 million.