Harrydent Your question worried me so I had a comb through the financial report. I am not expert at analysing financial statements so please provide comments where you can.
There are two items on the balance sheet which I think must represent the "grower loan book". On page 15 of the report under clauses 4(a) and 4(b) there are numbers for Current and Non-Current Secured Loan receivables. These amount to $93 million and $388 million respectively.
Allowence for Doubtful Loan Receivables=$18 million which is 3.7%. If this were to increase to 30% or say $140 million, the interest payments to the banks would increase by say $8 million per annum or so in terms of annual interest obligations. Whilst they would have security over the timberlots and almond lots etc etc, they would need to sell these (to whom?) to be able to pay back their principal and I guess that is the issue.
Am I looking at this correctly?
TIM Price at posting:
17.5¢ Sentiment: LT Buy Disclosure: Held
