east v.s. west conflict – read on!, page-34

"YC you didn't respond to that previous suggestion?"

Because management will only repeat the same stuff I can access on their website ... I have emailed in the past once and not received a response.

"However if TFS can't get it right, then the rest of the Indian / Autralian sandalwood industry probably is not worth looking at either!"

Incorrect. The Australian sandalwood industry provides 3 revenues streams, the Indian only 1.
1. Wood which is many years out.
2. Nuts which are after year 4 at a return of A$30,000-60,000/t.
3. Carbon credits in the upcoming ETS.
The cost base for spicatum establishment is a fraction of Indian sandalwood (in the Ord).

"The significant financial clout / knowledge of Lush, Abeville and the Middle east seem to think otherwise."

Until these interests join the share registry all they have done is ensure they have access to a sandalwood resource whether TFC get it right or not. There was no prices mentioned in the Lush announcement. If the album model fails they have the spicatum as a plan B, since Mt. Romance is a current producer. The recent JV with the Emirates is quite clever because nowhere does it stipulate that the plant has to process album wood and supply album oil, just sandalwood oil. Don't be surprised if spicatum is used. Why build in Albany when the resource is in Kunnunarra? There are now a minimum of 13,000 hectares of spicatum planted in the SW of WA ...

Why the negativity? An implosion in the Indian sector will affect investment flows to the Australian sandalwood sector despite them being two different crops. Sick of seeing investors lose out to agri-investments through these MIS models. This affects investment flows to agriculture in general negatively.

"You just don't get so closely associated with a company TFS (Lush share rights, Middle east - sell planations), unless you are strongly convinced."

... or the demanded commodity is so rare you find it hard to source ...

I'll post a recent article out of India hinting of a fall in sandalwood timber prices too. If we take TFC's quote "Sandalwood is one of the world’s most valuable hardwoods, selling for over A$100,000 per tonne of heartwood (Tamil Nadu Forestry Department Auctions)"