Outlook for 2021

The new sawmill for hardwood began two-shift operations, which will lead to an increase in production at the same fixed costs. Further improvements in production processes are being made, which will reduce costs. Harvest volumes are likely to be similar to 2020, but yields are expected to be significantly higher. We expect the delivery situation to improve, which will then increase liquidity. Market prices have improved significantly since February 2021, and we can take advantage of the effects early thanks to a low order backlog. The use and further processing of biomass continues to be a major priority and will receive even more attention in the longer term. We have received assurances that we can continue the next rotation in our concessions starting in 2025. We are therefore starting to focus on an energy plant and other alternative uses of waste wood from the sawmill.

We expect higher margins, provided that no further setbacks or delivery delays occur due to the pandemic or other unexpected events. The new forestry law is expected to be passed in the second half of the year 2021 at the latest. Investments in the value chain are being considered and, where appropriate, cooperation arrangements with other local companies are being formed. The government of Gabon has decided that only certified companies will be allowed to acquire concessions in the future, which will certainly offer us further opportunities to expand our business model.