KIPT takes the next step es­tab­lish­ing a fu­ture

Australian Forests and Timber - - Front Page -

AUS­TRALIA’S ONLY listed tim­ber­land com­pany, Kan­ga­roo Is­land Plan­ta­tion Tim­bers, was sched­uled to set­tle its pur­chase of the for­mer New Forests estate on Kan­ga­roo Is­land on 28 April, fol­low­ing the suc­cess­ful con­clu­sion of a $33.5m cap­i­tal rais­ing.

The pur­chase of the NF estate on Kan­ga­roo Is­land for $55 mil­lion was an­nounced and a de­posit paid in Oc­to­ber last year. The trans­ac­tion means KIPT will own about 80% of the plan­ta­tions on the Is­land, which has around 18,000ha planted, mainly with bluegum.

The com­pany has ac­cess to a bank debt fa­cil­ity of $25m to as­sist in com­plet­ing the pur­chase. Funds from the place­ment and rights is­sue will be used for the balance of the ac­qui­si­tion costs and for work­ing cap­i­tal.

Tim­ber on Kan­ga­roo Is­land is cur­rently a stranded as­set. While some pines were planted in the early 1980s for pro­cess­ing in the lo­cal sawmill, most of the Is­land’s eu­ca­lypts were planted (for wood­chip) dur­ing the man­aged in­vest­ment scheme fi­asco in the mid-2000s. Ac­cord­ingly, the ma­tu­rity pro­file of the Is­land’s estate favours har­vest­ing in the next few years.

The com­pany has lodged a de­vel­op­ment ap­pli­ca­tion with the South Aus­tralian Govern­ment to con­struct a deep-wa­ter wharf to en­able it to ex­port around 500,000 green tonnes per an­num. Fund­ing for the wharf is al­ready in place.

For­est pro­duc­tiv­ity lev­els on the Is­land have proved to be ex­cel­lent, due to re­li­able rain, mild sum­mers and low evap­o­ra­tion. Kan­ga­roo Is­land Plan­ta­tion Tim­bers now has the chal­lenge of turn­ing that pro­duc­tiv­ity into cash, by get­ting ap­proval for its deep-wa­ter wharf. Source: Kan­ga­roo Is­land Plan­ta­tion Tim­bers Ltd

Kan­ga­roo Is­land thin­ning oper­a­tions.

Logs loaded for pro­cess­ing.

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