TFC debt is set to be debt free by 30 June 2009!!!! This is just...

TFC debt is set to be debt free by 30 June 2009!!!! This is just a fantastic achievement.

Bodes well for either growth through acquisition or higher dividends in the future. Combine zero debt,reaching its sales targets for 2009, growth in dividends and lessening reliance on MIS sales in the future - should see this stock get re-rated very soon IMHO. Looking forward to 1 July 2009 (if TFC follow last years timetable) at a good sales target announcement.



Sandalwood producer defends MIS schemes

By Matt Brann

Thursday, 28/05/2009

A Kimberley managed investment company has defended the MIS model and says it expects to finish the financial year debt-free.

Managed investment fund Great Southern went into receivership last week and Timbercorp was placed into voluntary administration last month.

But Ord Valley company Tropical Forestry Services, which specialises in Indian Sandalwood plantations, says its ridden out the storm that's claimed the more high profile schemes.

Chairman Frank Wilson says his company is proof MIS's can work.

"Managed investment schemes are a good model, when it's managed properly and it's run with good high-value products," he says.

"It doesn't work well when you've got nearly a billion dollars of debt, which some of these companies respectively both had.

"TFS is very, very lowly geared and we're predicting we'll have no net debt by June 30, 2009."

TFS has almost 2,500 hectares of Indian sandalwood planted in the Ord Valley, the timber when harvested is used to make perfumes and incense products.

The company has recently struck a joint venture deal with Emirates Investments Group, that will see the joint venture receive up to a quarter of TFS's annual harvest.

TFS is expecting its first commercial harvest in 2012.