[color=red][/color]Hardwood Timber Reforestation Projected Values
Our Vision
Small Farms
Custom Plantations
Plantation Life Cycle
Timber Investment Benefits
Value Projections
Species Info
Trees grow at their own pace, they don't pay any attention to the market.
Projecting the value of tropical hardwoods in 20 years is not an exact science. Nevertheless, there is an abundance of energy devoted to the task, resulting in a substantial set of estimations and projections, which vary considerably and can be found on the Internet.
We expect investors to do their own careful due diligence. We are willing to provide any information available to us and to thoroughly discuss value projections and/or rate of return calculations. We prefer to provide information and references and allow the investor to project value and calculate rate of return. We do have confidence in certain conclusions, including:
Secure Investment in Real Assets
Timber is one of the safest and steadiest growth investments available, protecting an investor from inflation, and providing returns above most alternative investments for the past 40 years. Tropical hardwood has a shorter growth cycle and higher market price than North American hardwood timber, thus a higher ROI and IRR in general. Investment in a well managed tropical hardwood plantation provides both long-term return and short term profit opportunities
Long Term Strategy
Timber is particularly suitable for SEP, retirement funds, or other long-term positions. The initial investment is relatively large, but the subsequent investment is minimal. The tropical hardwood growth cycle is typically 20-25 years, consistent with most retirement, pension, or long-term investment objectives. Once the plantation reaches the thinning stages in years 8-16 it can be come self sustaining and even provide revenue. Timber also provides diversification to any portfolio, a feature particularly attractive after the recent collapse of the typical equity investment portfolio.
Short Term Opportunities for Profit
Timber is typically considered as a long-term investment because of the hardwood growth cycle. Actually, plantation timber investments today present short-term profit opportunities. Once established and certified, a hardwood plantation becomes an asset that can be sold in the open market before the growth cycle completes. A short-term business model that markets the plantation at 5 years or 10 years is as viable as a model that manages and holds the timber to maturity. The market for short-term sale should steadily improve with the development of carbon credit funds and the continued growth of timber investment funds.
Basic Projection of Value at Maturity
The most conservative evaluation of return on investment uses current wood prices and does not include an inflation factor. Using this evaluation model we can confidently show an attractive return on investment.
·In 2009 teak in roll form (logs) is priced at approximately $500 per cubic meter. As rough sawn lumber, teak is currently priced at approximately $1500 per cubic meter.
·The initial planting on a hardwood plantation is about 1000-1200 trees per hectare. Typical management practices include two large thinning, the first in the 10-12 year range and a second in the 16-19 year range. Both thinning are revenue-producing events. As a result of the thinning and natural mortality, at maturity (20-25 years) each hectare will have approximately 250-300 mature trees. These trees will yield approximately 220-250 cubic meters of marketable hardwood per hectare.
·Using this widely accepted data, US$a 10 hectare teak plantation at maturity will have approximately 2750 trees yielding approximately 2400 cubic meters of marketable hardwood. In roll (logs) the approximate value is 1.2 million . As rough sawn lumber, allowing for loss in processing the approximate value is 2.2 million US$. Again, these amounts do not include thinning revenue and use 2009 wood prices. .....RICHWOOD HAS 100k hectare under development, with access to 500,000 more acres are under development.2.2 mill$ U.S per 10 hectares=60 bill...........Now we are replanting also I believe.....so point is there is alot of money in trees.With 200 employees contracted I think a 1/1 divy is a bargain here.We don't have 2700 tress probably per 10 hectares.....but we are not waiting on the growth cycle either.We do have access to 100k-300k hectares though....jmo......=600,000 acres folks
[color=red][/color]
Greed and patience don't work well together.
