Miro Forestry expects demand for timber to continue to rise worldwide, driven by global population and wealth increase, and thus increased material consumption. In West Africa, years of deforestation and unsustainable logging has heavily curtailed supply, leading to rising timber imports and prices (in fact sub-Saharan Africa is now a net importer of industrial timber). Miro Forestry is therefore extremely well positioned to deliver globally cost competitive industrial timber into the region as well as for export overseas.
Tropical climates in emerging markets have high biological growth rates, ensuring that trees grow and reach maturity quickly, as well as low land and operating costs - therefore ensuring that countries in West Africa such as Ghana and Sierra Leone can be extremely competitive and profitable for the production of sustainable timber.
The Company's strategy is to convert low-yielding grassland and degraded forest to sustainable plantations growing the highest-yielding timber crops suitable for the land areas under the Company's management. The limited long-term investment into Africa and other regions has resulted in modest competition for land suitable for long-rotation crops and a limited supply of sustainable timber. Coupled with the Company's high management standards, the Directors believe the Company is extremely well positioned to continue delivering good returns to shareholders.
Miro Forestry's strategy is to continue to develop and expand its plantation timber and sustainable forestry assets. The Company has identified the following strategic areas as key to meeting its objectives:
- focus on minimizing operating costs while ensuring high plantation management standards and high timber growth rates
continuing to build the Company's strategic land assets targeting:
- high biological growth rates of trees;
- opportunities to acquire undervalued or distressed assets;
- strong and growing local timber markets;
- low labour and operating costs;
- exploiting "off-market" opportunities with proven management teams and strong local partners;
- targeting a diversified portfolio of timber and forestry investments which have the potential to attain international forestry certification within a reasonable period.