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TFS managing director Frank Wilson (R) and legal adviser Jeremy Wade.

Gilly helps Wilson fend off fiery attack

The board of TFS Corporation has survived a tough annual meeting that saw executive chairman Frank Wilson call upon the company’s legal adviser, auditor and fellow directors to help deal with numerous

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Claremont. 0418942387
Finally the chairman has said they will harvest 100ha. Next year of which only has 20% sandalwood. They predict 8.5 tonne heartwood per ha and 4% yield. This gives 170 tonne of heartwood for 100ha. This gives 6.8 tonne of oil. The oil sells in India for US$1500 per kg. The spent charge (wood after the oil is extracted) sells for US$1500 per tonne. Being generous, this gives a gross income from 100ha of US$1250000. Or US$12,500 per hectare. The cost to harvest has to be taken into account and still they have to remove the sapwood from the tree before they can distill the oil(no one can do this mechanically yet), transport from the Ord to Albany and then extract the oil at A$3,000 per tonne of wood. This is A$510,000 just to extract the oil. Harvesting and de-barking will be at least A350,000. The cost of de-sapping is totally unknown as it hasn't been done in WA. Transport to Albany will be at least A$30,000. Very conservative costs without de-sapping and sending the oil to the market will be A$894,000. At the AGM, the chairman said that the original investors will get their money back plus some. I am sure these investors did not put in less than A$356,000 over 14 years for 100 ha of sandalwood. We believe the returns predicted by the chairman are very generous and unrealistic. Is the top up to the investors coming from the TFS Shareholders? Regards, Tim Coakley, Wescorp Sandalwood

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