Sino-Forest updates asset valuation
March 28, 2005 By Pulp & Paper Canada
Sino-Forest Corporation has received the valuation of its commercial forest plantation assets, as well as a prospec…
Sino-Forest Corporation has received the valuation of its commercial forest plantation assets, as well as a prospective valuation of its proposed plantation development plans in China.
The valuation determines that Sino-Forest’s plantation area was roughly 241,800 hectares at the end of 2004. Taking into account the company’s expansion of forest plantation area by 200,000 hectares in Heyuan City, Guandong Province, the consultants responsible for the valuation derived the value of roughly $774 million for the continuing re-establishment and maintenance of all Sino-Forest plantation rotations over a 50-year period.
The value of the company’s plantation assets was $566 million U.S., up from the $345 million U.S. in 2003. The increase is due to revised discount rate and log price assumptions, as well as the inclusion of roughly 95,100 hectares of additional forest plantation area.
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