G'day Boz
Like a lot of financially engineered products, assumptions are made to arrive at a particular desired IRR. Remember all the tunnel and freeway projects that made assumptions that were never achieved, and the fate of those projects. (think BCS and RCY in Brisbane)
The published results of QIN's projects from 2003 to 2009 indicate that their initial assumptions appear to be optimistic.
There also appears to have been a "top up" provided to earlier projects to get the IRR up and ensure ongoing plantation sales. A related entity (Gulf Natural Supply) appears to have bought all the product from earlier projects at top price.
The last company to do this was Great Southern, and history records how that all ended.
Ann: Extension of Voluntary Suspension, page-95
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