COZ 1.33% 7.6¢ commodities group limited

Mallees don't grow on salt land either Chops. Nor do they grow...

  1. 13,124 Posts.
    lightbulb Created with Sketch. 6
    Mallees don't grow on salt land either Chops. Nor do they grow in water logged soils. They both have similar soil requirements except mallees require fertilizers.

    Costs per hectare of establishment do not differ much. And SIGNIFICANT guaranteed cashflow back from sandalwood after 4 years. I've been achieving gross margins this year of around $10,000/hectare in 5 year old orchards. That would likely be a hundred years of carbon payments with mallees. Sandalwood also acrue value in the timber itself which can be harvested at 15-25 years to be sold into markets likely to pay around $5000/t. So you in effect have a profitable exit strategy should you wish to reclear the land for other purposes.

    Flexibility is the key for farmers. There is no flexibility in carbon sequestration.

    The mallee story is not about carbon sequestration it is about biomass to liquid fuel - cellulosic ethanol.

    Nurseries are booked out this year so COZ will now find it virtually impossible to get the seedlings grown it requires.

    Real world realities far different to the hype marketed by listed companies ...

    Its in a year's time when food prices have doubled again that you'll likely understand the points I am making.
 
watchlist Created with Sketch. Add COZ (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.