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Quarterly shareholder newsletter – December quarter

Quarterly shareholder newsletter from Managing Director John Sergeant.

We have just finished the most transformative year in the Company’s history and, as a result, we are stronger and better resourced than ever, and considerably closer to achieving our goal of being a sustainable and profitable exporter of high quality timber products. Having said that, I expect 2018 to be equally transformative, although much less stressful for our staff and our shareholders. The people and the financial resources that we need are now in place. Everything that we can control is under control. We have confidence in our partners and know that they have confidence in us. The remaining risks that we face are known and to a large extent manageable. The main concerns now are delays to development approval, restrictive consent conditions and unforeseen construction challenges. We believe that none (or even all) of these has the capacity to endanger the project or the Company. And meanwhile our trees keep on growing.
We continue to work on finalising our Environmental Impact Statement (EIS) for the Smith Bay deep-water wharf (which we now call the KI Seaport)  and will keep the market informed about our progress. Of course, we want development approval as soon as possible, so that we can begin to export and unlock value for shareholders and for the Kangaroo Island community.

We also want to make the right decisions now about our future operations, so that we can design a high- quality production system that is as efficient and reliable as possible. This feeds into the EIS because it affects our site layout at Smith Bay.
In this newsletter, I want to share some of our thinking about our future operations. But first, let me provide a bit more information on the recent equity capital raising. Several shareholders have contacted me about this and I have talked with them and answered their questions … but it seems appropriate to canvass the issues more broadly.

Read the full newsletter here