Border Timbers Limited (BRDR.zw) Q12022 Interim Report
The trading environment remains relatively stable, with the central bank introducing tighter measures on money supply as well as further controls on the foreign currency auction. Pricing volatility has also improved as the interbank exchange rate continue to increase though compared to the parallel exchange rate the gap is still wide. We remain hopeful that the central bank will continue with their initiatives to achieve stability in the prevailing exchange rate and eliminate arbitrage caused by the disparity between the official rate and the parallel rate, which largely underpins the country’s economic stability and provides the required impetus for economic growth.
Year to Date Performance
Lumber production is broadly in line with prior year and demand for Lumber remains very high both in the local market and the export market.
Treated poles reflect an increase in production and sales volume compared to prior year, this is owing to new marketing initiatives by the company which have seen market development within the region as well as the fading away of the adverse impacts of COVID-19 which has a significant effect on the pole business.
Update on ICSID claim and Judicial Management.
An EGM is to be arranged shortly to approve the split of the ICSID award and to appoint the new Board of Directors to allow the judicial manager to step down.
The company continue to focus on strengthening its balance sheet and profitability by improving its biological asset and the related value chains. Key focus is also on recapitalization of the company’s sawmills so that they are equipped with modern machinery which results in high efficiency and profitability.
Management continues to do an excellent job in difficult circumstances.
PETER LEWIS BAILEY
25 NOVEMBER 2021