Farai Mabeza, Senior Staff Writer 
BORDER Timbers says it has secured funding for a biomass partnership project with two unnamed tobacco companies.
In a statement accompanying the company’s financials for the year ended June 30, 2023, Border Timbers’ chairman, Elias Hwenga, said 1 327 hectares (FY2022: 713 hectares) were planted, a significant improvement compared to prior year.
“A total of 6 400 hectares at Tilbury Estate has been set aside for the biomass establishment in partnership with two tobacco companies. Funding for the project has been secured and this is expected to further strengthen the company’s biological asset, at the same time supporting tobacco production with a sustainable source of energy for curing,” Hwenga said.
The company was placed under judicial management in January 2015.
“Plantation fire damage remains the major business risk, particularly arson. During the year, the company lost 327 hectares (FY2022: 235 hectares), which is higher compared to the previous period.”
He said the company had strengthened its fire response mechanisms, but bemoaned power outages, which he said affected lumber production, resulting in the company resorting to expensive backup generators.
“The trading environment remains complex and uncertain, primarily driven by price distortions, high borrowing costs, which have an impact on liquidity and customer demand,” Hwenga said.
Revenue for the period was US$15,8 million (FY2022:US$12,9 million), a 23 percent increase compared to prior year, and this was attributed to improved product mix and consistent product quality of kiln dried timber, resulting in better average selling prices.
Net profit before taxation was US$0,9 million (FY2022: US$9,8 million), mainly driven up by a non-cash gain on biological asset transformation of US$14,8 million.
“Lumber sales volume was 38 792m3 (FY2022: 43 120m3), the 10 percent reduction was mainly because of lower aggregate demand, primarily in the local market. Efforts are underway to expand the export market base with a focus on markets with better average selling prices,” Hwenga said.
Treated poles sales volume was 7 297m3 (FY 2022: 10 189m³), a 28 percent decrease compared to the prior.
