why didnt they announce this to the market... seems like the drought wont affect timbercorp due to water management...
Drought Management 20-Apr-2007
Timbercorp has developed a leading approach to water and irrigation management during the drought period. This has been undertaken by our team of water and irrigation design specialists.
The recent announcement by the Prime Minister of looming water shortages highlights the strong benefits of this approach and positions us to effectively manage the risks associated with the drought.
Water allocations from the Murray Darling system for the winter months will start at 0% while water authorities monitor rainfall. This information has been known for some time and Timbercorp has developed a sophisticated water management plan to have sufficient irrigation water for our purposes during this period as follows:
Dams – We have constructed substantial dams for storage of water on all of our properties to be used during the months from April to September, when the water allocations are lowest. Water in storage will be sufficient to maintain the crops and health of the plants for this period. Water requirements of trees are usually at their lowest during the winter months.
Carryover - Murray Valley water have allowed irrigators to carryover unused water allocated or purchased in 2006-07 season. We will now be able to use water in 2007-08 instead of the current season.
Management and Technology - Water saving technology has been implemented to significantly reduce the volume of water required. We strive to continually improve our water use efficiency.
Allocation Outlook - According to the Murray Valley water authorities, under normal weather patterns, most rainfall and runoff to storage occurs in the spring. Therefore, the authorities expect water allocations to increase from October onwards.
They expect a 70% chance water allocations will be between 67% and 82% by summer.
Rainfall Outlook - The Bureau of Meteorology predicts a 50% chance that rainfall in the Murray Darling Basin will be average. Average to above average rainfall during the winter and spring periods will further improve the outlook.
TIM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
