The Company is currently in the business of managing timber plantations. It is the view of the Directors that timber as an investment class offers the potential for returns in the longer term, as well as other potential benefits such as carbon sequestration rights. Timber as a commodity is growing in demand and diminishing in supply due to the long lead time required to produce the end product. Whilst timber for woodchips offers an attractive, relatively short term investment option, the Company will look to offer other longer term, quality timber products such as solid wood Australian native species and softwood.
In addition to the mainstream public investment options, the Directors and management of the Company intend to maximise the value of available assets and expand the Company’s revenue and earnings base. Potential areas for improvement include the following:
- the Company has a significant investment in landholdings, many of which are not utilised and are unsuitable for current forestry activities. These landholdings do not currently produce any revenue for the Company and investigations will therefore be carried out to identify alternative uses for these landholdings or, if no suitable alternative uses are available, divestment options;
- a number of forestry and agribusiness opportunities have been identified which the Directors believe to be a good fit with the business of the Company and which may present suitable acquisition prospects. The Company will vigorously pursue suitable opportunities such as these and other strategies to maximise revenue and profit growth; and
- the Company will be actively seeking other forestry opportunities outside the managed investment scheme sector, including targeting major corporations required to meet greenhouse emission targets such as oil companies, power producers and mining companies. The Company will also look for innovative ways to benefit from the increasing public awareness of environmental issues, the effect of greenhouse gases and the consequent need to maintain and increase forestry plantations.
The Company’s main activity in the short and medium term will remain the business of forestry management through managed investment schemes. However, RuralAus' focus is to remove reliance on MIS forestry for revenue flow and virgorously pursue other forestry opportunities that do not involve MIS projects. Renewable energy power and pellet plants, value added sawn lumber and export log opportunities will be the main focus of RuralAus' immediate activities.