Working TFC over on small volumes - Their playing again, page-33

Tippy, this is a very important question as TFS still relies on selling of new forests for about $100M of income per year, even while product sales ramp up. However, I note in the full year report that they spent $16.686M on purchasing land and buildings (more than double that of the previous financial year), the majority of which is for land for the establishment of new plantations in 2016 and 2017. Given their past record I see no reason to doubt that they will turn this into more successful plantation sales again in FY17 and FY18. Strong demand is certainly there given past and projected financial performance of plantations. I am looking forward to the day when they have all the land and water rights that they need and can fully recycle harvested land for the next year's new plantations. That should really improve margins.