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Cambium Global Timberland NAV plunges

Cambium Global Timberland’s net asset value on 30 April 2015 was 23p per share compared with 40p as at 30 April 2014, a fall of 42.5%. Currency movements took off 8.5%, changes to the valuation of the timber assets and related provisions took of 26.3% and net expenditure on forestry and other costs accounted for the remaining 7.7%.

£5m was handed back via a buy back of shares. They have £3m in cash but are keeping this to cover expenses for now so the next distribution probably won’t be until after they start harvesting timber next year.

They tried to sell the Minas Gerais plantation but the deal fell through as the Brazilian economy deteriorated. they are closer to a deal in Hawaii but the price will reflect the wind damage that property experienced and a low price for logs in China. £3m has been provided against the 3R Tocantins property related to a lien potentially outstanding to Banco da Amazonia. The Brazilian properties have been impacted by drought and some fire damage.

 

 

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