Shares in Kangaroo Island Plantation Timbers 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.
The Company advises that 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 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.
The attached map shows the estimated burnt area as of Friday 10 January. The map is subject to change, as CFS ground crews complete their assessment, and due to the possibility of further outbreaks. Thankfully, the fire has not spread too much since January 10 and is now within containment 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 and tan. It does not distinguish between KIPT plantations (over 95% fire affected) and 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. The treatment plant was not damaged but the post peeler has been damaged. This equipment will be essential in turning smaller fire-damaged pine logs into much-needed fence posts, given about 3,000km of fencing will need to be replaced urgently on Kangaroo Island following the fires, and given that the limited mainland supplies of fence posts will be needed in other fire regions.
The Company continues to consider its other options for the salvage of fire-damaged timber and is working through the other actions outlined in its announcement of 6 January 2020.