Kangaroo Island Plantation Timbers faces new chapter and overarching strategy amid board changes
- Kangaroo Island Plantation Timbers adopts new strategy focusing on conventional agricultural use
- Kangaroo Island Plantation Timbers board rejects $20 million offer for land as "substantially less than book value"
- Kangaroo Island Plantation Timbers' Keith Lamb updates on insurance payouts
Quick facts: Kangaroo Island Plantation Timbers Ltd
Price: 1.22 AUD
Market Cap: $68.91 m
About the company
Kangaroo Island Plantation Timbers Ltd (ASX:KPT) is Australia’s only listed timberland company.
The company manages a wholly-owned portfolio of hardwood and softwood forestry plantations, growing on former agricultural land on Kangaroo Island, South Australia.
KPT is also committed to developing a seaport for exports at Smith Bay, on the north coast of Kangaroo Island, pending approvals.
How it is doing
Kangaroo Island Plantation Timbers Ltd (ASX:KPT) has adopted a new strategy to remove the treecrop and convert its land for more traditional agricultural use after being advised that its application to establish a seaport at Smith Bay on the island’s north coast has been declined.
The company was formally advised of this decision by South Australia’s Minister for Planning Vickie Chapman MP.
KIPT’s new strategy, which will begin immediately, will require significantly less capital and will revert its 18,696 hectares of high rainfall land to a productive agricultural estate over a shorter period of time.
Chairman Paul McKenzie said: “Today marks a major turning point for KPT. By undertaking this lower risk and well-trodden strategy, we will in turn develop our land into an institutional-grade, conventional agricultural estate.
In announcing the award, South Australia’s Minister for Innovation and Skills David Pisoni mentioned the company’s commitment to employment diversity, worker support structures, safety systems and training regime.
Kangaroo Island Plantation Timbers Ltd (ASX:KPT) last week welcomed to the Island members of the South Australian Parliament’s Select Committee on Matters Relating to the Timber Industry in the Limestone Coast.
The committee members visited Kangaroo Island to hear about issues facing KPT and other growers in accessing markets on the mainland.
Insight: Kangaroo Island Plantation Timbers board rejects $20 million offer for land...
What management says
He says $4.2 million has been received to cover the replacement cost of fire-damaged houses.
The fires in December 2019 and January 2020 impacted 95 per cent of KPT’s hardwood and softwood plantations on the island.
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