Geographic extent of fires on Kangaroo Island

  1. 70.5k
    Posts

    Shares in Kangaroo Island Plantation Timbers Ltd (“KIPT” or “the Company”) are currently
    voluntarily suspended from trading on the Australian Securities Exchange, in accordance
    with Listing Rule 17.2, following the recent series of devastating fires on Kangaroo Island.
    The Company has taken this step to ensure an orderly market in its shares. It intends to
    release information progressively during the period of voluntary suspension.
    KIPT staff and consultants are currently:
    1. Assessing fire damage, both from the air and, where it is safe to do so, on the
    ground;
    2. Determining which plantation areas are too damaged to have any commercial value,
    which fire-affected areas can be salvaged and which areas have relatively high
    survival rates and can be allowed to grow until harvest;
    3. Where it is safe to do so, attempting to contain residual hot spots, some of which are
    burning in remnant native vegetation within the Company’s plantations. This work is
    important to protect the Company’s assets and those of its neighbours from any
    renewed outbreaks.
    The scale of the task confronting the Company (and the community) can be gauged from the
    accompanying map of the western half of Kangaroo Island, supplied by the South Australian
    Country Fire Service (CFS). The map shows the estimated burnt area as of Tuesday 7
    January. The map is subject to change, as CFS ground crews reach more remote areas,
    and due to the possibility of further outbreaks in coming periods of unfavourable weather.
    The map shows Flinders Chase National Park and its associated Wilderness Protection
    Areas (WPAs) in a dull green, and plantation areas in bright green. It does not distinguish
    between KIPT and independent grower assets.
    The estimated area over which fires have burned is marked with diagonal black lines. It is
    evident that about 90% of the plantations on the Island have been fire-affected. The dates
    on the map show when the fires started, although it should be noted that the Ravine Fire
    caused most of its destruction when it broke out of the Ravine des Casoars WPA in the
    catastrophic fire conditions that occurred four days after ignition.
    The Company is considering its options for the salvage of fire-damaged timber and is
    working through the other actions outlined in its announcement of 6 January 2020.

    courtesy of Bell Direct
    ===========================================================

    ( DYOR )

    i do not hold this share

    keeps on finding headwinds

  2. 70.5k
    Posts

    Geographic extent of fires on Kangaroo Island (update)
    Shares in Kangaroo Island Plantation Timbers Ltd (“KIPT” or “the Company”) remain
    voluntarily suspended from trading on the Australian Securities Exchange, in accordance
    with Listing Rule 17.2. The Company intends to release information progressively during the
    period of voluntary suspension.
    Kangaroo Island has been subjected to renewed fire activity, as the Ravine Fire escaped
    containment lines during another extreme weather event on Thursday 9 January. KIPT’s
    own fire crews worked alongside South Australian Country Fire Service (CFS) brigades
    attempting to control the eastward spread of the fire. Nevertheless, the fire burnt a large area
    of farmland, causing further damage to buildings, fences, property and, several of the
    Company’s remaining plantations. Light rain has since fallen across the fireground.
    The attached map shows the estimated burnt area as of Monday 13 January. The map
    shows Flinders Chase National Park and its associated Wilderness Protection Areas (WPAs)
    in a dull green, and plantation areas in bright green. It does not distinguish between KIPT
    plantations (over 95% fire affected) and the twelve independent grower plantations (100%
    fire-affected). The estimated area over which fires have burned is marked with diagonal
    black lines.
    The Company’s Timber Creek Mill was in the fire’s path and suffered some damage.
    However, the Company is pleased to report that the preservation plant at the Mill was
    undamaged. This equipment will be essential in turning smaller fire-damaged pine logs into
    much-needed treated fence posts. About 3,000km of fencing will have to be replaced
    urgently on Kangaroo Island following the fires, and mainland supplies of fence posts will be
    needed in the Adelaide Hills and other fire-affected regions of Australia.
    The Company continues to consider its options for the salvage of the remaining firedamaged timber and is working through the other actions outlined in its announcement of 6
    January 2020.

    courtesy of Bell Direct
    ===============================================================================================

    ( DYOR )

    i do not hold this share

    i was tempted before Xmas to put this one my watch-list , but so far have resisted buying ... i might have dodged a bullet

    1 like
  3. 14.2k
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    Timber plantations aren't good investments because of one off events like this. When I was really young I worked for an Italian tiler here in Adelaide and he bought into a forestry investment on kangaroo island in the 70's. It went like an absolute camel. Didn't even get his money back he put in the start after 20 years. Waste of time, too many unknowns and his threes suffered from fire, and weather damage

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  4. 70.5k
    Posts

    KPT has had a series of troubles even before the fires , IF the business can survive all these set-backs there is likely to be a good entry-point in there somewhere , the question later is ... did you hold some 'forever ' or be satisfied with say a 30% gain ( half expecting more setbacks from time to time ) and leave in the mid term ( say 3 years ) this COULD be one of those stocks so badly bashed it recovers during a meltdown ( or collapse under the debt-load )

    what i am NOT suggesting is this is suitable for the bottom drawer you would probably have to check up on it ( say ) weekly

    plantations got a bad name when special tax-breaks morphed into a tax-avoidance scheme and quickly into outright chicanery and fraud

    i did very well in TFS ( later morphed to QIN and went bust ) and SHV ( which is going OK despite me exiting completely )

    looks safe investing but has been proven to be dangerous and high risk ( and sometimes profitable )

    i hold RFF currently and am watching VTH

    PS if you think plantations are bad you should see the track record of aquaculture

    but which is worse lower risk but a concentrated portfolio or higher risk but a widely diversified portfolio ( there is only a correct answer for YOU )

    i choose option 2 because i needed to force growth but spread risks ( and spend plenty of time watching , learning and thinking )

    1 like
  5. 14.2k
    Posts

    Aqua and forestry are the same. Need to be a really big player to make it big and have assets in lots of locations to migrate risk

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