Isn't KKR the obvious bidder?, page-22

"Also, the yeilds and survivability figures have been trending upwards as innovations are introduced and methods improved. Whether or not there is material legitimacy to that I'll leave to the people experienced in sandalwood plantation operations. See the trend? It's all fluff.. fluff that will be used to negotiate a price."


the trend is towards lower survivability and yield than the model. That's not fluff, that's a serious misvaluation of the company's biological assets, that I should imagine ASIC will want to have a look at.

"What it looks like to me is that due to the extremely slow pace of seedlings converting to cash, estimations are extremely subjective. I think the deciding factor is whether or not there is economic value in the trees and oil, not really what some model projects. In that binary view, I do think there is economic value there"

I don't think anyone is saying the trees are worthless, they're saying the company is worthless. They've got $340m of debt - so reducing the yield assumptions has a huge effect.