Rubicon

[t.rexjr]

I agree that it is the international market that is the key to their success. To answer how well they might do overseas, its worth looking at how well they are doing here, after all they have been here a while and some of their superior genetics were principally developed here for the NZ market. It seems to me that they are a respected company here that does well in the market but, as far as I can judge (and I am not in the industry and have limited visibility into the industry), their "superior genetics" do not seem to have achieved recognition as being uniquely superior here. They may do well, I hope they do.

I'm hopeful there comes a time where NZ realises our current timber stocks are shonky. The quality of the timber used in our buildings has diminished considerably over the last few decades. The machine strength testing used now means a quality of timber that would likely be rejected in the past via visual assessment is readily used now days.

[BlackPeter]

I'm hopeful there comes a time where NZ realises our current timber stocks are shonky. The quality of the timber used in our buildings has diminished considerably over the last few decades. The machine strength testing used now means a quality of timber that would likely be rejected in the past via visual assessment is readily used now days.

Our timber is compared to international standards low quality but extremely expensive. Don't think however that Rubicon will change that - what we need is a handful of sawmills owned and operated by people who actually do know their trade.

Just coming from the SI field days - and even there they try to offer wrongly stored (no airgap to dry out) and fungus infected beams as quality product. In Europe they could sell this stuff at best as firewood (well - probably not if its already "treated").

Our timberindustry can only be thankful that NZ is so far off the beaten track - if some of the European sawmillers discover NZ as market, than our inefficient and low quality timber producing domestic industry could close shop.

Which would not be good for our forestry industry either - can't compete with high quality wood from Skandinavia, Siberia and domestic European sources.

[SilverBack]

I agree that it is the international market that is the key to their success. To answer how well they might do overseas, its worth looking at how well they are doing here, after all they have been here a while and some of their superior genetics were principally developed here for the NZ market. It seems to me that they are a respected company here that does well in the market but, as far as I can judge (and I am not in the industry and have limited visibility into the industry), their "superior genetics" do not seem to have achieved recognition as being uniquely superior here. They may do well, I hope they do.

Aborgen picked up a lot of its genetic database from the previous co-owners who were pulp and paper companies in Europe and USA. That will have given them a much wider genetic info than was obtained from NZ.
I have not researched the proportions but much timber is grown for pulp and also packaging and the quality required is not the same as for construction timber. I think Arborgen target growth rate and resilience.

[BlackPeter]

Aborgen picked up a lot of its genetic database from the previous co-owners who were pulp and paper companies in Europe and USA. That will have given them a much wider genetic info than was obtained from NZ.
I have not researched the proportions but much timber is grown for pulp and also packaging and the quality required is not the same as for construction timber. I think Arborgen target growth rate and resilience.

Hmm - timber for pulp and paper comes these days from Indonesia (well, in our region anyway) and it is cheap. If that's the only thing their wood is good for, this would certainly be disappointing. There definitely is money in quality building timber (if they learn how to grow, cut and store it), but there ain't much money in pulp and paper.

The business case for Argogen looks worse every time I look at it ;

[ari]

https://www.nzherald.co.nz/business/...ectid=12216444

[BlackPeter]

https://www.nzherald.co.nz/business/...ectid=12216444

That's the sort of sustainable and environmental thinking we should support:

The Europeans believe our native trees should be promoted more for use in house building, for added value products and for arts, like carving. Through Kauri, they're also keen to plant rimu, cabbage trees, manuka and kanuka.

Just remind me - which of these trees are provided by Arbogen?

[Leftfield]

.....Just remind me - which of these trees are provided by Arbogen?

That's the point. Arbogen's markets are primarily North and South America. It is an International forestry company.... not only NZ. That said, although I used to hold, I no longer hold.
GLH's!

[ari]

May have main markets elsewhere, but ArborGen still has a multi-million dollar partnership with New Zealand Crown Research Institute Scion in Rotorua

[blackcap]

Glad I got out. More dilution (well not that much really) but not confident anymore going forward. May look at it again in the future.

http://nzx-prod-s7fsd7f98s.s3-websit...703/297647.pdf

[Leftfield]

News just out.....

29 March 2019 - Rubicon announced today that its CEO (Luke Moriarty) and CFO
(Mark Taylor), have departed the Company, and that all parties had amicably
agreed a settlement in relation to the finalisation of their roles. Rubicon
has agreed to make to Messrs Moriarty and Taylor (in the aggregate) a cash
payment of NZ$100,000 and an allotment of nine million Rubicon ordinary
shares. Four million of these new shares are to be issued on 1 April 2019,
with the balance of the issuance and allotment to be completed by 1 April
2022.