REVIEW OF FINANCIAL CONDITION (CONTINUED) Risk Management and Compliance (continued) SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS SIGNIFICANT EVENTS AFTER BALANCE DATE LIKELY DEVELOPMENTS AND EXPECTED RESULTS ENVIRONMENTAL REGULATION AND PERFORMANCE Some regulated areas of operation are:  This report otherwise omits information on likely developments and expected future results, the supply of which in the opinion of the Directors,  would prejudice the interests of the Group.  Both properties are presented in the Finished & Store Cattle operating segment in note 6 to the financial statements. The Brighton Downs sale is being conducted by Elders Real Estate and was passed in at auction on 22 May 2013 for $10.25 million, with  negotiations continuing with interested parties.  Under the sale agreement, AACo will lease back 7,800 hectares (19,200 acres) of mostly high quality cropping land for a five-year period at a  commercial rate. In addition, AACo will sell the purchaser 4,000 steers at an average price of $1.64 per live-weight kilo. AACo will retain 8,400  hectares (20,700 acres) of property within the Goonoo aggregation, including all water licences, irrigation infrastructure, feedlots and feed mills  and the major balance of housing and capital works. The contract is subject to conditions including Minister’s consent, regulatory approval and financier approvals. The expected completion date for  the contract is late June 2013. The sale represented a gain over the carrying book value, based on a recent independent valuation. The properties  consist of three adjacent dry land farming and grazing properties within the Goonoo aggregation, totalling 19,404 hectares (48,000 acres) -  Adelong, Marilla and Rhudanna.  On 20 May 2013 the Company announced it had exchanged a contract for the sale of subdivisions of its Goonoo aggregation, including Adelong, in  Central Queensland for $23.0 million. On 18 April 2013 the Company announced it would sell two non-strategic Queensland properties, Brighton Downs and Adelong. The main movements giving rise to this decrease were market value changes predominantly in the breeding herd of $35.3 million, based on  independent valuations, since 31 December 2012. AACo sees the breeder herd as a significant and necessary asset. These cattle will be held for  long periods of time as they are essential to the development of an integrated supply chain and hence non-cash movements in the valuation of this  herd are not expected to be realised in the short term. During the 3 months to 31 March 2013 total equity decreased to $595 million from $639 million (31 December 2012), a decrease of $44 million.   Representation and Reporting – given the Company is listed on the ASX full, timely and correct representation and reporting to the market  is vital. Management and the Board carefully monitor all communication with shareholders and the market to remain compliant with the  Continuous Disclosure requirements and ensure stakeholders are aware of material impacts on the business.   Accreditations, industry codes, licences and food safety – given the Company’s involvement in the beef supply chain, food safety and  associated regulations are critically important. Many areas of the Company’s operations are accredited or licensed by a state or national  regulator. These accreditations and licences are critical to the Company’s ability to operate and access profitable markets. When choosing  business partners and suppliers the Company also takes into account their accreditations, licenses and food safety standards.  The operations of Goonoo and Aronui Feedlots are regulated by licences issued under the Environmental Protection Act 1994 and administered  by the Queensland Department Agriculture, Fisheries and Forestry (DAFF). Each feedlot is required to report to the National Pollution Inventory  each year with respect to water, air and soil quality. DAFF conducts audits of compliance with licence requirements at regular intervals. The  Company recorded no breaches of licence requirements in the three months to 31 March 2013.  The pumping of water from the Comet River for irrigation and feedlot use at Goonoo Station is subject to licensing under the Sustainable  Planning Act 1997 and the Water Act 2000. Regulations specify minimum water flows and heights in the river to allow sufficient environmental  flows. Wylarah has a licence to harvest water from the Balonne River for irrigation purposes.  Annual Report 2013 21