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YRK
YRK
YRK - The York Timber Organisation Limited - York reports on fire damage
The York Timber Organisation Limited
(Registration number 1916/004890/06)
Share code: YRK
ISIN: ZAE000008108
("York" or "the company")
YORK REPORTS ON FIRE DAMAGE
Severe fires since the week-end have caused substantial damage to
plantations in Mpumalanga, Swaziland and KwaZulu-Natal.
Against this background, York CEO Lance Cooper, has said that one of the
company`s plantations and sawmills had been affected and that these fires
would compound the long term softwood lumber shortage already facing South
Africa. He added that several of the fires had been brought under control
in recent hours.
Cooper said that fire damage had been suffered by an estimated 6 000
hectares of York`s 90 000 hectares, or less than 7% of the company`s total
plantations. In addition, a portion of York`s Driekop sawmill near Graskop
was damaged by the fire. "The wetmill started burning at about 5am on
Saturday morning," said Cooper. "However, fire teams were able to
extinguish the flames before they reached the drymill and the auxiliary
mill. Limited production will be restored to the mill this week and extra
shifts at the group`s other seven mills are being planned to bolster
production volumes and avoid disruption of supplies. The mill is insured
for loss of profits and asset insurance," confirmed Cooper.
York`s fire teams were activated at about 21h00 on Friday night as two
large fires started in Sabie and Graskop and a third in the Warburton area
near Piet Retief. Exhausted fire fighters worked in difficult conditions
to contain the fires all weekend and numerous volunteers from the
communities have added to the numbers.
Cooper explains that the situation is not as bad as it might appear: "The
burnt timber can be processed, as the trees are scorched by the fire and do
not burn away," he explains. "In order to maximise recoveries all planned
felling of unburnt timber will be stopped in order to focus on processing
the burnt timber before the trees die and start to deteriorate," says
Cooper. York will also store a large volume of logs under irrigation. "We
have previously successfully stored logs for up to three years under
sprayers without a deterioration in quality."
The plantations are insured by way of an internal self-insurance risk pool,
due to the high cost of premiums and the ability of the company to salvage
a lot of the burnt timber. "We will therefore ensure that the salvage
operations are effective and the wastage of timber is kept to a minimum,"
he asserts.
As soon as the fire fighting teams have brought all the fires under
control, York will be able to more accurately assess the nature and extent
of the affected areas. "Our provisional estimate of fire damage to 6 000
hectares will be updated, together with information on the age and quality
of the scorched timber," concludes Cooper.
Further announcements may be published by York in due course should
additional important information relating to the fire damage and its impact
on the operations of York become known to management.
YORK ORDINARY SHARES COMMENCE TRADING EX-RIGHTS
Shareholders are advised that today, being Monday 30 July 2007, is the
first day that York ordinary shares trade ex-rights with regards to the
rights offer in terms of which 2.1134123 rights offer shares at a
subscription price of R15 per rights offer share were offered for each York
ordinary share held at the close of business on Friday 27 July 2007,
details of which are included in the circular issued to York shareholders
on 15 June 2007.
White River
30 July 2007
Date: 30/07/2007 13:01:01 Produced by the JSE SENS Department.
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