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KIPT shares drop 53% following trading suspension

Shares in Kangaroo Island Plantation Timbers dropped by 53% on Tuesday after its voluntary suspension of trading was lifted. Source: Timberbiz

KIPT suspended trade in January while the company assessed the damage from the bushfires which burnt in excess of 90 per cent of its assets valued in excess of $100 million. All the island’s independent plantations were also affected by fire.

So far, the company has received $10 million in insurance payments with $50 million outstanding and other recoveries possible.

Shares yesterday fell $1.05 to close at 91 cents.

In a statement to the Australian Stock Exchange the company said it remained committed to the timber plantation business.

Post-fire harvesting was continuing to enable early re-planting and the company was working with business partners, government, established forestry investors and banks for investment and working capital.

The company also said its proposed seaport was essential and that timber operations would pay for the facility.