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Kangaroo Island Plantation Timbers looks to economic recovery after renewed fire activity

During the voluntary suspension, the company will make any necessary changes to its arrangements with insurers, bankers and project partners, and intends to determine its future business strategy and the extent of planned replanting activity.

Kangaroo Island Plantation Timbers Ltd - Kangaroo Island Plantation Timbers looks to economic recovery after renewed fire activity
Estimated extent of fire-affected areas on Kangaroo Island as of Monday, January 13

Kangaroo Island Plantation Timbers Ltd (ASX:KPT) remains voluntarily suspended from trading after devastating fires on Kangaroo Island caused extensive damage to the company’s timber plantations.

Unfortunately, the island has been subjected to renewed fire activity, as the Ravine Fire escaped containment lines during another extreme weather event on Thursday, January 9.

KPT’s own fire crews worked alongside South Australian Country Fire Service (CFS) brigades attempting to control the eastward spread of the fire.

The fire burnt a large area of farmland, causing further damage to buildings, fences, property and several of the company’s remaining plantations, however, light rain has since fallen across the fireground.

This has allowed KPT a slight reprieve to assess the damage.

Extent of the damage

The above map shows the estimated burnt area as of Monday, January 13, marked with diagonal black lines.

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 KPT plantations (over 95% fire affected) and the 12 independent grower plantations (100% fire-affected).

Essential equipment survives

While the company’s Timber Creek Mill was in the fire’s path and suffered some damage, the company reports 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 3,000 kilometres of fencing needs 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.

Looking forward

The company remains positive and continues to consider its options for the salvage of the remaining fire damaged timber.

It is also working to mitigate risk for the rest of the fire season and for future fire seasons.

KPT is working with government and the community on the economic recovery of the island with progression towards a favourable conclusion of the development assessment process for the KI Seaport underway - which remains critical to the company’s medium-term and long-term future.

Quick facts: Kangaroo Island Plantation Timbers Ltd

Price: 0.91 AUD

ASX:KPT
Market: ASX
Market Cap: $51.34 m
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