AMA Half Yearly Management Report for Cremorne Capital ATF HVT Land Trust January - June 2021

African Mahogany Australia

HALF YEARLY MANAGEMENT REPORT for

Cremorne Capital Ltd ATF HVT Land Trust

H2 FY21

1 January 2021 – 30 June 2021

July, 2021

CC/HVT Half yearly Management Report – January-June, 2021

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Contents 1.

Operations Summary ...............................................................................................................................3

2.

Area Statement ........................................................................................................................................4

3.

4.

2.1

2007 Age Class ................................................................................................................................4

2.2

2008 Age Class ................................................................................................................................4

Operational Activities...............................................................................................................................5 3.1

Thinning ..........................................................................................................................................5

3.2

Sesame research ............................................................................................................................7

3.3

Hay operations ...............................................................................................................................8

3.4

Silviculture and nutrition R&D ......................................................................................................9

3.5

Fire management .........................................................................................................................10

Other Activities ......................................................................................................................................11 4.1

ESG activity – January-June, 2020. ..............................................................................................11

4.2

Plantation photos ........................................................................................................................14

CC/HVT Half yearly Management Report – January-June, 2021

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1.

Operations Summary

This Half yearly Report for the second half is presented in accordance with the requirements of the Management Agreement. It encompasses the period from 1 January, 2021 to 30 June, 2021.

The main operations conducted throughout the reporting period encompassed planting and management of a sesame research trial, hay crop management and harvesting, early dry season fire protection works and post thin operations stand monitoring.

Mean Douglas Daly Rainfall (past 20 years)

Month

Jan

Rain (mm)

Feb

Mar

282.7 288.5 229.6

Apr May Jun Jul Aug Sept

Oct

49.5 10.4 2.1 2.5 1.3

36.4 121.4 213.7 1245.8

5.4

Nov

Dec Annual

Rainfall recorded in the Douglas Daly shows the following measurements for 2020/21season YTD: Month Rainfall (mm) Rain days

July 20

Aug 20

Sept 20

Oct 20

Nov 20

Dec 20

Jan 21

Feb 21

Mar 21

April 21

May 21

June 21

full year

0

0

15.6

134

130.2

255.6

252.4

326

284

2.6

0

0

1400.4

0

0

4

8

4

24

23

25

16

2

0

0

106

A pleasing wet resulted in a positive growth response throughout the property. The thinned stands are responding well to the 12% higher rainfall received the past wet season.

CC/HVT Half yearly Management Report – January-June, 2021

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2.

Area Statement

The area of the Whatfor property is 3207 ha. Land use is summarised in table 1 below

Table 1: Landuse summary, Whatfor Station.

Landuse Mahogany Plantation Mahogany Plantation Cavalcade hay paddock Native/utilities Gross Total

Age class 2007 2008 2019 n/a

Area (ha) 1104.0 415.4 136.0 1,551.6 3,207.0

Note: These areas are as per the Margules Groome valuation undertaken in August, 2018.

2.1

2007 Age Class

The 2007 age class is generally in good health.

Areas that have been thinned and then fertilised have responded well to this treatment. Grazing has ceased this half due to de-stocking by the agistee. It is planned that re-stocking will commence early in H1 of FY22.

General plantation health is good.

2.2

2008 Age Class

Like the 2007 age class, all stands that have had recent intervention and fertilisation have responded well and continue to grow and occupy the site well. Grazing has limited weeds, fire risk and increased nutrient cycling on the plantation.

General plantation health is good- thinning is required in unthinned stands to accelerate growth.

CC/HVT Half yearly Management Report – January-June, 2021

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3.

Operational Activities

3.1

Thinning

The thinning regime is to reduce stems at first thinning to between 250-300sph. This approach has been established by applying knowledge gained from several research trials undertaken throughout the mahogany estate by AMA. Pre-thinning selection and marking is undertaken to assist in selection quality – this is a critical operation which will determine which trees will grow on to be final crop trees. This operation also serves to increase the speed in which manual falling crews can complete thinning in any given area.

644.1ha have been completed to date on Whatfor. Fertiliser has been applied following thinning. All stands have responded well after rain.

Table1: Thinning completed on Whatfor Station

Property Name What For What For What For What For What For What For What For What For What For What For What For What For What For

Block Name 3a 3b 3c 5a 5b 8a 9a 11a 12a 14a 13a 15a 3b

Planting Year 2007 2007 2007 2007 2007 2007 2008 2008 2008 2008 2008 2008 2007

CC/HVT Half yearly Management Report – January-June, 2021

Stocked Area (ha) 41.3 28.5 36.8 12.8 56.6 181.2 24.9 17.4 25.1 102.1 15.5 75.0 182.5 799.6

Area thinned 41.3 28.5 36.8 12.8 56.6 181.2 24.9 17.4 25.1 102.1 15.5 75.0 27.0 644.1

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Thinned Whatfor Station stands have responded well, June 2021

CC/HVT Half yearly Management Report – January-June, 2021

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3.2

Sesame research

In 2020, management decided that due to a predicted saturated hay market, alternative crops should be considered.

White sesame was grown as part of a research trial for an Australian agent for an Israeli seed company.

This trial yielded a $200/ha rental and opportunities to expand sesame cropping operations in the NT.

Sesame grown on Whatfor, 2021 wet season

CC/HVT Half yearly Management Report – January-June, 2021

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3.3

Hay operations

25ha of cavalcade hay (higher grade legume hay) was established and grown in the wet season.

This activity is undertaken to generate cash to contribute toward essential value adding plantation management activities such as thinning and fertilising.

Yields were pleasing – 298t off 25ha equalling 11.9 tonnes per ha. This will be sold later in the season once demand picks up.

CC/HVT Half yearly Management Report – January-June, 2021

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3.4

Silviculture and nutrition R&D

The silviculture, nutrition and wood quality research project that has been undertaken for the past 4 years finally wound up at the end of the quarter. This project is now a cornerstone to the management, processing, and marketing of khaya in the Northern Territory. With this information, significant value will be added to the current and future crops of this timber species.

A milling trial was undertaken as part of this unit of work to investigate heartwood and sawn performance of young khaya logs. With some of the timber, AMA had some beautiful chairs made using leather for the seats to depict the cattle that graze underneath the plantations.

Chairs that AMA commissioned using 12–14-year-old plantation mahogany from the NT. This project has help raise profile of the resource in the NT and the chairs were purchased by the NT Government.

CC/HVT Half yearly Management Report – January-June, 2021

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3.5

Fire management

Early dry season is critical to ensure the vulnerable boundaries surrounding the Whatfor plantation are secured prior to the hot, dry winds of July-September commence. AMA have undertaken fuel reduction burning, roadside verge burning and strategic firebreak maintenance to minimise risk during the 2021 fire season.

Low intensity verge burning to protect plantation assets in the Douglas Daly.

CC/HVT Half yearly Management Report – January-June, 2021

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4.

Other Activities 4.1

ESG activity – January-June, 2020.

Date

21/01/2021

22/02/2021

3/03/2021 11/03/2021 17/03/2021 19/03/2021 16-18/3

Environment

Social Inter/intraIndustry Collaboration Inter/intraIndustry Collaboration

Community interaction

Inter/intraIndustry

Governance

Crop performance Government/ Regulatory Government/ Regulatory Business Development Business Development Business Development

All

Entity (where relevant)

Property

AMA Representative

Frank Miller

Details reference (doument title)

Met with GM logistics hub in Darwin Rob Hall to discuss future opportunities in working together to freight timber products efficiently

Met with CEO Gondwana Genomics to discuss genetic improvement and DNA mapping plan for Khaya.

Attended the national Clean Energy Regulator workshop to discuss pathways of removing barriers to new investment in plantation forestry investments.

Presented to department of Education and teachers regarding forest industry and getting kids interested in forestry FM visited Super Forest Plantations in Northern NSW to inspect their commercial thinning operations and look at their timber post operation.

FM attended Timber Queensland symposium, discussed research, forest industry hubs.

Frank Miller

Frank Miller

FM and Chris Oliver attended Conservis Farm Management system training in Katherine.

Frank Miller

Frank Miller

Frank Miller

Frank Miller

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CC/HVT Half yearly Management Report – January-June, 2021

Date

Jan-March Jan-March Jan-March 8/02/2021 9/02/2021 12/02/2021

Environment

Feral Animal Control Feral Animal Control

Social Inter/intraIndustry Collaboration Community interaction Community interaction Community Fire Protection

Inter/intraIndustry Collaboration

Governance

All

Other

Entity (where relevant)

STA PTT

Suppier/Contractor relations

All

All

Government/ Regulatory

Multiple

Mentabie

Multiple

Chris Oliver

Chris Oliver

Chris Oliver

Frank Miller

Budgetting R&D funding to continue best science practices within Mahogany estate. Multiple meetings and correspondence on Registered hunters undertook hunting activities for the control of feral pigs and buffalo on Mentabie.

Registered hunters undertook hunting activities for feral pigs and buffalo across the PTT properties.

CO attended DDVBB meeting community members to discuss ongoing organisational and regulatory requirements.

CO met with Nutrien agronomist in the Douglas Daly to discuss crop and forest production requirements.

Details reference (doument title)

Multiple

Chris Oliver

CO and FM met with plant pathologists (NT Gov Primary Industries) to discuss sampling and investigation of mahogany diseases.

AMA Representative

Multiple

Chris Oliver

Property

Multiple

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CC/HVT Half yearly Management Report – January-June, 2021

Date

Environment

Social

All

Governance Government/ Regulatory All

Community Fire Protection Suppier/Contractor relations

19/02/2021 25/02/2021

Government/ Regulatory

Suppier/Contractor relations

All

All

STA

Entity (where relevant)

Government/ Regulatory

All

All

Community interaction

Community interaction Community Fire Protection

Government/ Regulatory

Other

11/03/2021

29/03/2021 31/03/2021 11/06/2021 13/06/2021

Multiple

Chris Oliver

Chris Oliver

CO attended the DD community roads meeting with DIPL (NT Gov) to discuss the current status of road conditions, proposed road works and upgrades. CO inspected problematic areas along Fleming Rd with DIPL to highlight road limitations and safety issues.

CO attended DDVBB meeting with BFNT representatives and community members to discuss ongoing organisational and regulatory requirements.

CO and FM held meetings with Peter Barkla to discuss contract opportunities for the upcoming hay season.

Details reference (doument title)

Multiple

Chris Oliver

AMA Representative

Multiple

Chris Oliver

Property

Multiple

Chris Oliver

CJO attended the DDVBB committee meeeting.

CJO met with AA Co. representative to examine the current cavalcade crop at Mentabie.

FM and CO met with Agribusiness Minister and Deputy Chrief Minister Nicole Manison to discuss plantation and regional infrastructure needs.

Frank Miller met with Territory NRM to finalise Forestry Sustainability Guidelines.

Mentabie

Frank Miller Frank Miller

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CC/HVT Half yearly Management Report – January-June, 2021

4.2

Plantation photos

Clean understory and good form, June 2021, Whatfor Station CC/HVT Half yearly Management Report – January-June, 2021

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