UNDER siege sandalwood company Quintis has this week asked the Australian Stock Exchange for even more time to explain its dramatic share price crash.
It now wants its voluntary trading halt extended to June 21.
The Perth-controlled company owns sprawling plantations and nurseries across more than 2550 hectares in Katherine in the NT.
It also has plantations across the north of Australia in Queensland and Western Australia.
Quintis, formerly the TFS Corporation, is the world’s largest producer of sustainable Indian Sandalwood, with a listed market capitalisation of about $600 million before last month’s price crash.
It has planted planted 5.4 million Sandalwood Album trees covering 12,182ha across the north of Australia.
It has plantations of more than 1400ha in the Burdekin area of Queensland near Townsville.
The company this week said it was still investigating potential takeover bids after a recent crash in share prices of almost 44 per cent.
It has also cut back on its new plantings in the Northern Territory “in light of current market conditions and the uncertainty over the level of plantation sales in 2017”.
New plantings are now expected to be 900ha, and were previously 1400ha.
Planting across the NT and Queensland started in April and is expected to be completed in July.
Quintis has also recently started its harvest of wood.
The company told the ASX it had downgraded its earnings forecast and was “unable to accurately predict the outcome of the coming sales season".
"Market conditions are currently volatile given the recent sharp decline in the company's share price, suspension of trading in the company's shares, the resignation of the company's former managing director, and the potential corporate transaction, which could include a change of control," it said.
"In this environment, the company is unable to accurately predict the outcome of the coming sales season and so the company is withdrawing its cash EBITDA (earnings before interest, tax, depreciation and amortisation) guidance for the year to June 30, 2017."
Quintis said it was still confident in its ability to export its wood and oil products globally at attractive prices.
Chris McLennan
ACM national rural property writer based in Bacchus Marsh, Victoria. Career journalist. Multi award winner.
ACM national rural property writer based in Bacchus Marsh, Victoria. Career journalist. Multi award winner.
