Cambium Global Timberland’s net asset value fell from 40p to 33p over the six months ended 31 October 2014. However since then a wind storm in Hawaii has damaged the Pahala plantation there and the fall in the Braziian Real and a weak Brazilian economy have impacted the valuation of their Brazilian assets (the bulk of the portfolio – about 70%). The net of this is that the Board think the NAV is now more like 30p than 33p.
The fall in the NAV between April and October has been broken down by the company into -1.9% from currency moves, -13.1% from changes in the valuation of investments and -2.6% from overheads. In the US, $1.0m held in escrow for the sale of Clinch County has now been received by the Group and $2.0m in escrow for environmental warranties for the Stewart County property is due to be released in July 2015. The Brazilian assets have been suffering from a lack of rain but fortunately two small fires didn’t cause too much damage.
Shareholders recently approved a tender for £5m at 25p per share (distributing the proceeds of sales of their US and Australian assets).
TREE : Cambium hit by windstorm and weak Brazil