bell potter retains buy target $1.50

I,

Latest Bell Potter report attached. Key points:

- Several key events in the June 2011 half to derisk
the investment profile of TFC. These include: successful debt refinance by 30 April; release of full trial results in May WA Government trees, enabling comparison with test
results on the younger TFC grown trees; achieving FY11 plantation sales (both institutional and MIS) that at least match the 1,088ha in FY10; generating operating cash flow of $70m; and, achieving over 10% growth in cash earnings
- TFS remains on track to meet its $70m operating cash flow target for FY11.
- TFC has at no time been in default or in breach of debt covenants, TFC attributes CBA?s actions to cease funding to reflect a desire to close out its remaining exposures to the Managed Investment Scheme (MIS) sector.
- TFC is well progressed on this debt refinancing with management confident the $75m bond issue currently being undertaken by Dubai-based investment bank Clarkson Investment Services Ltd (Clarksons) will be complete before the end of April 2011.
- Given the expertise TFS has in managing plantations, we remain confident that 13-year old TFS trees
will on average yield 0.8 litres of oil per tree on harvest.

http://tfsltd.com.au/library/file/research-reports/Bell%20Potter_010311.pdf

SD