Since insurance might be a talking point for a while a separate...

Since insurance might be a talking point for a while a separate thread might me the go.
Details of KPT's insurance cover is included in the 2019 AGM presentation.


I couldn't find what the previous years insurance levels were.

Seems pretty clear that each loss has it's own excess of $5m. Usually a loss would be anything related to one event. If one lightening storm created two fires that might be one event, with one excess. Storms on separate days each creating a fire would each be a separate event and separate $5m excess.

Single loss limit. i didn't see this one until I went looking today. This caps the recognized loss from one event at $68m regardless if it is for the destruction of the entire standing timber in one go. The timber had a book value of $115, before the small fires started.

In practical terms if there has been a fire through all the remaining plantations the the payout might be $63m ($68m - $5m excess). This payout might go to the CBA for the first $57m as insurance and first rights to the financier are bog standard conditions of most secured loans. This would leave about $5-6m coming to KPT. KPT would be debt free and owing 17k ha of charred threes and land.

The above is a logical extreme. The company could not know the full extent of the losses, salvage numbers or replanting costs. you could make a long list of the known unknowns.

According to some 1/3 to 1/2 of Kangaroo Island is an ash-pan but some reports said the weekend fire were not as bad as expected. As always the truth is somewhere between.

If there have been extensive plantation losses then there should be a lengthy suspension until a lot more details and costs are known.

I have followed this co for about two years but never had the ready funds to make an investment. Sorry to see so much grief around on this but what ever the outcome for shareholders many people on the island are going through the worst of times.

If anyone buys or sells without waiting for detailed information form the company then they are simply buying or selling while uninformed.

Good luck all.