About KIPT Ltd
Kangaroo Island Plantation Timbers is Australia’s only listed timberland company. It manages a wholly-owned portfolio of hardwood and softwood forestry plantations, growing on former agricultural land on Kangaroo Island, South Australia.
Unlike many businesses in the timber sector, Kangaroo Island Plantation Timbers has no involvement in managed investment schemes or in logging native forests. It is majority Australian owned. This allows the Company to take a long-term view in managing its plantation timber and land assets for the benefit of shareholders … and to acquire under-priced assets if and when they become available.
The Company owns about 25,000 hectares of productive Kangaroo Island land, with 14,200 planted to either softwood (radiata pine) or hardwood (eucalyptus globulus and eucalyptus nitens). A further 7300 hectares is remnant native vegetation. The Company also owns Kangaroo Island’s only sawmill, and owns potential port sites at Ballast Head and Smith Bay. The Smith Bay site is considered suitable as a site for a deep water wharf that can be used as a bulk log or chip export facility.
It is the view of the Directors that timber as an investment class offers the scope for sustainable returns in the longer term, as well as other potential benefits such as carbon sequestration rights. Notwithstanding short-term market distortions, timber as a commodity is growing in demand and diminishing in supply due to the long lead time required to produce the end product and the decreasing availability of native forests for clear-felling.
The Company is proud to be a part of the Kangaroo Island community and is confident about the role that well-managed plantation timber production can play in the future of this most precious part of Australia.
Mitsui & Co
Kangaroo Island Plantation Timbers Ltd is pleased to announce that it has entered into a Memorandum of Understanding with Mitsui Bussan Woodchip Oceania Pty Ltd (MWO), an Australian subsidiary of Japanese conglomerate Mitsui & Co Ltd.
The MoU sets out a framework and a timetable under which KIPT will export its timber (as both woodchips and logs) from its plantations on Kangaroo Island. Timber products from Kangaroo Island will be sold via MWO and its related bodies corporate.
The arrangement gives MWO exclusive access to a valuable resource during a period of anticipated scarcity, while giving KIPT the security of dealing with a highly-regarded and reliable trader, marketer and offtake partner.
The MoU also identifies areas for potential further cooperation and investment.
Kangaroo Island Plantation Timbers Ltd has entered into a funding agreement with the Commonwealth Bank of Australia. Subject to certain conditions precedent, including all necessary development approvals, the Bank will lend up to $57.1 million in total. This will support 100% of the anticipated construction cost of $30m for the proposed Smith Bay Wharf plus an allowance for equipment finance and working capital.
The agreement contains provisions for up to $25 million of facilities, which have been used to finalise the purchase of the New Forests estate (or FIT estate) on Kangaroo Island.
KIPT chairman Paul McKenzie, who led the company’s negotiations with CBA, commented, “CBA’s Specialised Agribusiness Solutions team invested considerable time and expertise into understanding our business. We are pleased to have Australia’s biggest bank backing this important infrastructure project for South Australia, Kangaroo Island and our company.”
PF Olsen is a forestry management company which has managed forest estate on Kangaroo Island for several decades. KIPT is pleased to continue this arrangement and values the experience and expertise of its forestry management partner as it moves towards implementing its harvest plan.
Maritime Constructions is a Port Adelaide-based company with vast experience in providing specialist marine infrastructure solutions. KIPT has been working closely with MC over the past year to develop the plans for its wharf at Smith Bay. MC provides a broad spectrum of services including design, construction and maintenance.
The Board of Directors of Kangaroo Island Plantation Timbers Limited is responsible for the Corporate Governance of the Group and is committed to meeting the highest standards of Corporate Governance, business integrity and professionalism with due regard to the interests of all stakeholders. The Board guides and monitors the business and affairs of Kangaroo Island Plantation Timbers Limited on behalf of the shareholders by whom they are elected and to whom they are accountable.
Kangaroo Island Plantation Timbers has adopted the principles and recommendations established by the ASX Corporate Governance Council in its “Principles of Good Corporate Governance & Best Practice Recommendations”. The Board regularly reviews and updates its Corporate Governance to ensure that they reflect best practice.
Kangaroo Island Plantation Timbers recognises the value contributed to the organisation by employing people with varying skills, cultural backgrounds, ethnicity and experience and believes that this diverse workforce is the key to its continued growth, improved productivity and performance.
We actively value and embrace the diversity of our employees and are committed to creating an inclusive workplace where everyone is treated equally and fairly, and where discrimination, harassment and inequity are not tolerated. While Kangaroo Island Plantation Timbers is committed to fostering diversity at all levels, gender diversity has been and continues to be a priority for the Group.
To review the Securities Trading Policy, the Company’s response to the Corporate Governance Council’s Recommendations and the Corporate Governance Policies of Kangaroo Island Plantation Timbers, please click the links below.
Paul McKenzie BSc(Agric), BCom, FAICD, AIAST
Board member since April 2005, appointed Chair July 2009. Paul is the Managing Partner of Agrarian Management Consultants to Agriculture, a leading Western Australian agriculture consultancy with offices in Geraldton, Perth and Katanning. Paul has 20 years’ experience in agribusiness, management, finance and primary production. He is a past President of the Australian Association of Agricultural Consultants (WA) Inc and a Ministerial Appointee to various agribusiness review and advisory panels. Paul was the founding Chairman of Gage Roads Brewing Co from concept to private company to ASX listing in December 2006, and resigned in May 2008. In June 2008, Paul was appointed director of Rural Financial Counselling Service (WA) (“RFCS”). RFCS administrates a federal government funded program in WA under the Department of Agriculture, Fisheries and Forestry.
Paul is Ferrier Hodgson’s WA Agribusiness Specialist for advisory, reconstruction and recovery appointments.
Keith Lamb MForestry MBA
Keith Lamb was appointed to the Board of Kangaroo Island Plantation Timbers in October 2018 and appointed Managing Director in June 2019.
Mr Lamb holds masters-level qualifications in Forestry and in Business Administration. He was Director of Operations and Portfolio Manager for New Forests Asset Management Pty Ltd from 2005 until 2017, with responsibility for $2.5 billion in timberland and related agricultural and industrial assets.
He has also served as a director of several forestry companies and trusts within and outside the New Forests group. His early career included both government and
non-government forestry roles.
John Sergeant BSc, BA(Hons I), FAMSRS, GAICD
Board member since March 2013, Managing Director from January 2015 until May 2019. Mr Sergeant holds a BSc in Biological Sciences and a BA in Psychology from the University of Sydney, where he was, for a number of years, a lecturer in the Business School, teaching at the postgraduate level.
Sydney-based, Mr Sergeant nevertheless spends a substantial amount of his time in South Australia and is familiar with all of the Company’s land and timber assets. He is committed to working with the community and other stakeholders and with local and state government to help deliver a deep water export facility on Kangaroo Island, fairly priced and accessible to all, and to establish plantation timber as a significant employer and source of economic activity.
Prior to joining the Company, he has managed a number of successful consultancy businesses, served on the boards of Australian and multinational professional services firms and, for four years, was the President of the Australian Market and Social Research Society, of which he is a fellow. From 2003 to 2014, Mr Sergeant was the Vice Principal of St Andrew’s College, within the University of Sydney.
He is currently a member of the boards of a number of private companies.
Greg Boulton AM, BA(Accounting), FCA, FCPA, FAICD
Independent Non-Executive Director
Greg is a leading Adelaide Company Director with 25 years’ experience in both public and private companies. He is the Chair of Southern Gold Ltd (ASX:SAU) and Chair of SA Pine Pty Ltd. He is also a Director of the Cancer Council of South Australia.
His experience relevant to KIPT’s operations includes Governance, Logistics, Timber, Resources and Finance.
Greg was awarded an AM – Member in the General Division of the Order of Australia – for his services to AFL Football administration, to the Community of South Australia and to Business.
Shauna Black Dip PrjMngt
Ms Black was appointed a non-executive director to the Board of Kangaroo Island Plantation Timbers in March 2015. She has been a well-known and respected resident of Kangaroo Island for 14 years and has a 30-year career in media. For almost eight years, she was the Managing Editor of the Island’s newspaper, The Islander, having moved from Adelaide after a 15-year stint at The Advertiser, including as its first personal finance editor and superannuation writer. She has a Diploma of Project Management.
Ms Black is a board member of Media Super (also Chair of its Investment Committee) and is active in a number of local associations on Kangaroo Island. She is the proprietor of Black Stump Media, specializing in media and project management services. Ms Black is also the Manager and Public Officer of the Kangaroo Island Industry and Brand Alliance
From May 2017, Ms Black has also worked in a part-time executive capacity, as the Director of Community Engagement for KIPT.
Graham Holdaway BCA, Dip Accy, ACA, MAICD
Mr Holdaway was appointed a non-executive director of Kangaroo Island Plantation Timbers in March, 2015. He is an experienced non-executive director, having served on boards of natural resources companies with operations in Australia, Indonesia, Papua New Guinea and the United Kingdom. He is a Chartered Accountant and a former partner of KPMG, with a particular interest in the development of resources-related infrastructure.
Graham is from a farming background and is a tree-grower in his own right, with eucalypt and radiata pine plantations in Victoria and on Kangaroo Island, South Australia. Graham is based in regional Victoria.
He is currently a non-executive director of one other public company: Asset Resolution Ltd.
From May 2017, Mr Holdaway has worked in an executive capacity, as the Director of Operations for KIPT.
CFO and Company Secretary
Vicky is a Fellow of The Association of Certified Chartered Accountants and a member of Chartered Secretaries Australia.
Vicky has more than 25 years’ accounting and auditing experience, including senior accounting positions in a number of listed companies and was an audit manager for Deloitte Touche Tohmatsu. In addition, Vicky has gained professional experience while living and working in both Australia and the United Kingdom.
Vicky is current Chief Financial Officer (“CFO”) for a number of ASX listed companies. Her previous experience has included being Company Secretary and CFO for a number of ASX listed companies, including: Safety Medical Products Ltd, Centrex Metals Ltd, Adelaide Energy Ltd, Enterprise Energy NL, and Island Sky Australia Ltd as well as a number of unlisted companies. In her role as Company Secretary, Vicky has also assisted a number of companies to list on the ASX.
Vicky has experience in all sizes of business from sole traders to large companies, in a wide variety of business sectors. She is based in Adelaide, South Australia.
Since 2006, Peter has managed an Adelaide-based management consulting practice, providing services to clients in a range of sectors, primarily mining, engineering and infrastructure, government, health care, and not-for-profit enterprises. Within KIPT, Peter is responsible for the Company’s interactions with government, in particular in relation to obtaining the necessary approvals for its Smith Bay multi-user deep-water wharf.
Peter has extensive experience in all three tiers of government, including five years as Chief Executive in local government and a further nine years of senior management experience in a range of executive positions, including in the Premier’s Department and the Premier’s Office in South Australia.
Peter has degrees in law and economics from Adelaide University, and has completed further studies in executive general management, financial management and negotiation at distinguished business schools in Australia and overseas.
He lives in the Fleurieu Peninsula and so is able to divide his time between Adelaide and Kangaroo Island.
Property & Forestry Operations Manager
Stephen leads the Company’s small team on Kangaroo Island. He was born and educated on KI and has a great fondness for this special part of Australia. In his 25 years in the timber industry, Steven has also worked in the Green Triangle region of South Australia.
Based at the Timber Creek Mill, Stephen has the detailed knowledge and accreditations needed to manage the production, transport and sale of treated and untreated log and sawn board products.
His other responsibilities are many and varied, from supervising staff and contractors, and keeping the plantations in good order, to maintaining the Company’s plant and equipment and ensuring high standards of OH&S.
Steven and his team also work independently, and with other stakeholders on the Island, to help maintain fire-fighting preparedness and to minimize the impact of feral species.