Harvesting in McQuade continues
Harvesting in McQuade forest continues with the roadlining crew approximately 1 month away from finishing. Once roadlining is completed roads and skids will continue to be built to provide harvest areas for the hauler. Road construction is scheduled to be finished before June 2015.
The hauler left the forest in December 2014 to complete another job and is due back at the end of March 2015. The income so far has been mainly used for road construction. Once road construction is complete, income produced from harvesting with the hauler will start to come in until the end of harvest. This income will be profit to the forest and only costs such as routine road maintenance will be deducted.
It is estimated that harvesting should be almost complete by the end of 2015 based on a weekly harvest of 100 tonnes. Investors can probably expect a distribution of funds some time in spring. So far in McQuade approximately 44,000 tonnes have been harvested. Of that 44,000 tonnes just under half of that volume went to Waverley Sawmills.
Log prices have been favourable over summer with slight price increases month to month. This has helped improve returns slightly compared with the returns encountered mid to late in 2014 where the industry suffered a massive drop in log prices. Good weather over summer has helped improve efficiencies when it comes to road and skid construction and the use of scoria as road metal has improved the cost per metre overall.
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