During the six months to 30 June 2016, Phaunos Timber Fund’s unaudited NAV per share has increased by 10.2% from 49 cents to 54 cents. The Group’s total NAV has also increased by US$20.6 million or 7.4% to US$299.4 million from US$278.8 million at 31 December 2015. The chairman says that while this includes a significant element of foreign exchange gain, it reflects the Manager’s success both in cutting costs and disposing of loss making assets. It also includes a realised gain on the sale of assets of US$8.3 million.
Phaunos’ mid-market share price on the LSE increased by 17% to 40.5 cents at 30 June 2016 from 35 cents at 31 December 2015. As a consequence, the share price discount to NAV per share continued to narrow to 25% as at 30 June 2016 from 29% at 31 December 2015.
Cash reserves increased during the period reaching a peak of US$50.3 million (31 December 2015: US$25.6 million). The increase is mainly attributable to US$16.8 million received, in the US, from Greenwood Tree Farm Fund through the sale of the Boardman Tree Farm, US$8.3 million received from the sale of Green Resources as well as US$2.6 million earned from dividends and distributions.
Revenues from distributions and harvesting decreased to US$1.7 million (30 June 2015: US$10.4 million) as a one off contract, which boosted harvesting revenues at Mata Mineira in Brazil in 2015 was not repeated.
PTF : Phaunos cash pile rising
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