African Mahogany Australia
Cavalcade crop growing well on Whatfor, March, 20129
QUARTERLY MANAGEMENT REPORT for
Cremorne Capital Ltd ATF HVT Land Trust December and March Quarters FY19
1 October 2018 – 31 March 2019
April, 2019
CC/HVT Quarterly Management Report – Oct 2018-March 2019
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Contents 1.
Operations Summary ...............................................................................................................................3
2.
Area Statement ........................................................................................................................................4
3.
2.1
2007 Age Class ................................................................................................................................4
2.2
2008 Age Class ................................................................................................................................4
Operational Activities...............................................................................................................................5 3.1
Thinning ..........................................................................................................................................5
3.2
Grazing............................................................................................................................................5
3.3
Hay operations ...............................................................................................................................6
4.2 Silviculture and nutrition R&D .................................................................................................................6 5
ESG activity – October-March, 2019. .......................................................................................................7
Key areas of activity: ........................................................................................................................................7 Community Support ....................................................................................................................................7 Strategic business development. ...............................................................................................................7 Environment:...............................................................................................................................................7
CC/HVT Quarterly Management Report – Oct 2018-March 2019
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1.
Operations Summary
This Quarterly Report for the September Quarter is presented in accordance with the requirements of the Management Agreement. It encompasses the period from 1 October, 2018 to 31 March, 2019. The main operations conducted throughout the reporting period was grazing, hay operations, completion of the thinning and integrated pruning and post thinning fertilisation of thinned areas. Mean Douglas Daly Rainfall (past 20 years) Mean Douglas Daly Rainfall (past 20 years)
Month Rain (mm)
Jan
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 2018/19 season YTD: Month
July
Aug
Sept
Oct
Nov
Dec
Jan
Feb
Mar
2018/19 Rainfall (mm)
0
0
0
23.4
267.8
113.2
216.2
151.4
168
2018/19 Rain days
0
0
0
2
14
7
22
13
11
April
May
June
Q1 saw well below average rainfall throughout January, February and March. Whilst this extended mid rotation tending operations such as thinning, it will inevitably place moisture stress on some stands.
Graph above illustrating higher than average rainfall early wet season, followed by well below average rainfall throughout Jan, Feb and March, 2019.
CC/HVT Quarterly Management Report – Oct 2018-March 2019
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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 Hay paddock Native/utilities Gross Total
Age class 2007 2008 2015 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. Planned thinning works will assist in allocating site resources to the most desirable, retained trees. The high stocking of these stands has resulted in minimal weed growth within the stands. Pruning will be required following thinning.
2.2
2008 Age Class
Intensified grazing continued in the 2008 age class during the September quarter. The most significant activity within the age class was the commencement and completion of thinning a selected area of 235ha for non-commercial thinning. These areas were e fertilised to enhance growth response following the removal inferior plantation trees.
CC/HVT Quarterly Management Report – Oct 2018-March 2019
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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.
Table1: summary of thinned areas and respective costs.
3.2
Grazing
The grazing program continued in the March Quarter, with 370 head of mixed northern Australian cattle grazing throughout Whatfor, reducing grass competition during the wet season, increasing nutrient cycling throughout the plantation and optimising land use productivity (timber and beef production). Some of this income has been invested into cattle infrastructure to increase holding capacity.
Cattle grazing at Whatfor. CC/HVT Quarterly Management Report – Oct 2018-March 2019
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3.3
Hay operations
136ha of cavalcade hay (higher grade legume hay) was established and grown in the wet season, it is looking like despite a low rainfall season, that yields will be commercial, and the market demand is strong. This activity will boost cashflow and margins achieved will help activity such as thinning and fertiliser on the plantation.
4.2
Silviculture and nutrition R&D
AMA coordinates intensive research to enhance growth and health of the khaya plantation it manages. This work directly benefits the management of the Whatfor plantation. L eaf water potential monitoring work continued in Q1 as part of the silvicultural and nutrition research being undertaken by AMA and John McGrath. As seen in the graphs below, it is well illustrated of the elasticity of Khaya senegalensis to respond from a water stressed state to a nonstressed state immediately after the first rain of the wet season. It is also apparent from this study of the variability of water stress depending on soil type. Kumbyechants, with higher water retaining potential than Stray Creek and Gypsy Springs, displays little sign of water stress even during the dry season. It is clear that a reduction in stocking and addition of fertiliser alleviates water stress on the drier properties.
CC/HVT Quarterly Management Report – Oct 2018-March 2019
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5
ESG activity – October-March, 2019.
The March quarter was another active quarter and below is an excerpt from the AMA ESG database. It encompasses all funds and properties under management and where “All” of “Multiple”, is mentioned, this relates to areas of engagement that are relevant to all Properties under management.
Key areas of activity: Community Support: The support for, and involvement with the Douglas Daly Community was continued in the March quarter with AMA sponsoring the Douglas Daly Community Cap Draft, and involved with Douglas Daly Volunteer Fire Brigade maintenance works.
Strategic business development. Mahogany was dried and dressed, following harvesting and milling in late 2018, as part of ongoing product and market development. Ongoing lobbying for the improvement of roads and a code of practice continued, and key business negotiations around increased grazing lease rates and upcoming hay supply were completed. Strong participation in local community events and working bees are a part of the approach that AMA take in ensuring the mahogany project is accepted and appreciated. Key deals were completed with both hay pre-sale agreements (FLO/STA/HVT) and an increase in grazing lease rates with Consolidated Pastoral Company (PTT)
Environment: Declared weed monitoring, identification and control was undertaken in the wetter months in Q1. It is a requirement under Territory law, and best management practice. AMA have implemented the grazing program to contribute to reducing the spread of some weeds by continual grazing – Gamba grass control is largely achieved using grazing to assist in this. CC/HVT Quarterly Management Report – Oct 2018-March 2019
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Date 7/01/2019 7/01/2019 7/01/2019 10/01/2019 24/01/2019 7/02/2019 9/02/2019 20/03/2019 24/03/2019
Environment
Declared Weed Control
Declared Weed Control
Governance
Entity (where relevant)
Suppier/Contractor relations Business Development HVT
Social
Business Development PTT
All
Inter/intraIndustry Collaboration
Business Development
PTT
All
PTT
All
PTT
Inter/intraIndustry Collaboration Inter/intraIndustry Collaboration Health and Safety
PTT
Government/ Regulatory
Government/ Regulatory Community interaction
Community Fire Protection
Details reference (doument title)
Kumbyechants
Kumbyechants
Kumbyechants
Whatfor
Multiple
Multiple
Chris Oliver
Chris Oliver
Chris Oliver
Chris Oliver
Chris Oliver
Chris Oliver
Chris Oliver
Monitoring and chemical control of Mimosa pigra
CJO attended the community work-bee at the Fleming town site
Monitoring and chemical control of Mimosa pigra
CJO undertaking conitunal interaction with Wayne Deveraux re: cattle movements and agistment on Whatfor CJO met with Tony Hayne (Douglas Station) to discuss current agistment program CJO and FM met with Thomson Forestry and Worksafe NT to investigate and discuss the accident that occurred at KBC on the 22/01/19
AMA Representative
N/A
Chris Oliver
CJO attended the work-bee at the DDVBB
Property
Kumbyechants
Chris Oliver
CJO interacting and planning with local contractors the upcoming works programs and resource requirements. CJO undertaking conitunal interaction with Wayne Deveraux re: cattle movements and agistment on PTT
N/A
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CC/HVT Quarterly Management Report – Oct 2018-March 2019
Date 24/03/2019 26/03/2019 27/03/2019 4/02/2019 5/02/2019
Environment
Declared Weed Control
Social Community Fire Protection
Governance Government/ Regulatory Business Development
Government/ Regulatory Business Development Business Development Crop performance
20/02/2019 22/02/2019
Sponsorship
Government/ Regulatory
Chemical Reduction
Business Development Business Development
26/02/2019 1/03/2019 20/03/2019 10/01/2019
All
Entity (where relevant)
PTT STA
AMA PTT AMA
Property
AMA Representative
Chris Oliver
Details reference (doument title)
Monitoring and chemical control of gamba Met with Ronan Mackey of the Pacific Labour Scheme to discuss employment matters for the Khaya project Met with Paul Sanda (Trade Commissioner to China) to odiscuss hay and timber export opportunities and process. Met wth Peter Dummett, Darwin Ports to discuss hay export opportunity
N/A
Frank Miller
dressing of trial harvest timber sawn and dried in Katherine
CJO attended meeting with Bush Fires Nt and the DDVBB to discuss the upcoming fires season CJO discussed with Steve Petty agistment details and his cattle development at KBC
Frank Miller
Strategic Planning day for NT Farmers Association (F Miller Director)
Chris Oliver
Frank Miller
Kumbyechants
Frank Miller
AMA sponsoring Douglas Daly Community Camp Draft signing of new agreement with CPC to increase rate and numbers for grazing on KBC
Chris Oliver
Frank Miller
Signing of 3,000t cavalcade hay deal with Consolidated Pastoral
Mentabie
Kumbyechants
Frank Miller
Frank Miller
Frank Miller
Rocktear
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CC/HVT Quarterly Management Report – Oct 2018-March 2019
Sample of dressed mahogany boards produced as part of product and processing trial undertaken in Q1, 2019.
CC/HVT Quarterly Management Report – Oct 2018-March 2019
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