Tasmanian Times

The individual has always had to struggle to keep from being overwhelmed by the tribe. If you try it, you will be lonely often, and sometimes frightened. No price is too high for the privilege of owning yourself. ~ Friedrich Nietzsche

The individual has always had to struggle to keep from being overwhelmed by the tribe. If you try it, you will be lonely often, and sometimes frightened. No price is too high for the privilege of owning yourself. ~ Friedrich Nietzsche

Forestry

Gunns’ profits fall

ABC Online

The Tasmanian timber company Gunns has recorded a significant fall in profits for the first half of the financial year. The net profit after tax for the six months to the end of December was just under $15 million, down from just over $20 million in the same period last year. Read more here

That share price: Latest Stock Market detail: Here

A reader writes: From the Directors Report:
“The primary source of funding for the development will be a project finance debt facility. Negotiation of the terms of this facility continue to be progressed with the proposed banking group. The Company has an independent assessment of the project against the internationally recognised Equator Principle guidelines for project finance developments. The Equator Principles provide a methodology for assessing the social, environmental and economic impacts of projects. This assessment has determined that the project is Equator Principle compliant.”
I haven’t heard anything from ANZ about this, have you? I’m sure ANZ customers would be interested in knowing, if this is accurate.
“The program for completion of outstanding commercial negotiations is consistent with the Board’s objective of commencing on site construction activity by June 2008 with mill production commencing in July 2010.”
I wonder if the Board are just as confident of these dates as they were of the start and commencement dates they were bandying about prior to the RPDC being “sacked”. Perhaps more of the Boy Who Cried Wolf saga!
ANZ: ANZGunns.pdf

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6 Comments

6 Comments

  1. peter

    March 2, 2008 at 2:27 pm

    Now Now Bob…you make it sound like a plot.

    The minute Lennon took the project off the RPDC every Tamar Valley vineyard owner knew the truth. Their vineyards were worth half of what they were worth the day before Linda Hornsey rang Gunns. So if u own a vineyard and it is worth half, perhaps your neighbours who love the impact of a pulp mill, will buy it off you?? Perhaps we can subsidise the purchase of these vineyards too??

    The item that really urks my Burkes, is that my house is now percieved to be worth 1/2 of what is was with an exceelent view to the pulp mill. The pulp mill that our elected representatives say is a great thing !! Naturally the Liberals seem all chocked up on support…because many Liberals are Gunns shareholders. The same mob that tried to bribe Labors’ Jim Cox many moon ago.

    C’mon Will be a man and declare the project DEAD. We will all vote for you then and you won’t need the Greens to form an accord.

  2. crud

    March 2, 2008 at 1:23 pm

    looks like the good old taxpayer is footing the bill for gunns mill pipeline,gunna be owned by tasmanians,yippee.

  3. Bob McMahon

    February 29, 2008 at 10:22 pm

    Gunns is apparently not a business in the usual sense but a cohort of robber barons who distribute taxpayers’ moneys to themselves.

    But rest easy scandalized readers. Citigroup and JP Morgan have stated that Gunns shares now pose an unacceptably high risk and their advice is to sell. So put your worthless scrip into a wheelbarrow, Mike and Dave, and trundle on down to Shadforths.

    Furthermore, JP Morgan lists Gunns’ debt at $1.03 billion which is a debt/equity ratio of 113%. (Remember Centro took a dive into the tar pit with a debt/equity ratio of 70%.) So in attempting to borrow another $2 billion or so Gunns seems prepared to indulge in a debt/equity ratio approaching 400%. Dream on you dolts or have you got an arrangement with the government you own to use this island as collateral?

    Bob McMahon

  4. Tony Saddington

    February 29, 2008 at 4:32 pm

    And Mr Adams, on the subject of Gunn’s vineyards, a media source informs me that the vineyards have approximately a 7 year lifespan once the mill is built.
    The plan is to remove the grapes and replant with something else. I wonder what type of crop Gunns would put in?

  5. Mike Adams

    February 28, 2008 at 3:44 pm

    Fear not, Mr Groves.There’s another string to Gunns’ bow. According to Huon Hooke in Feb 26th’s Good Living magazine Gunns’ Tamar Ridge winery received $125,000 from the Tas govt.’s Dept. of Economic Development in 2006 to refurbish the winery. They also received $1, 800,000 from AusIndustry to research pinot noir clones and their suitability to sparkling wines. Gunns have put in, it says, $200,000 a year for three years funding a PhD student , some supervisors’ time and a developmental winery – ‘little more than a shed.’
    Gunns’ ability to extract taxpayers cash is not restricted to timber, it seems. $1,925,000 in and $600,000 out.

  6. Dave Groves

    February 28, 2008 at 9:15 am

    Ah well all is not lost.

    Must be some wealthy environmentalists they could hit with a SLAPP suit….perhaps lock in more MIS investors….perhaps register as a church…perhaps organise the state to have health and education funds diverted or even open up all that locked up land to the chainsaws?
    Perhaps we could have a whip round or arrange to get our home renovations done through one comapny?

    Come on folks put your thinking caps on….

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