Kangaroo Island Plantation Timbers halts trading to assess bushfire damage

KIPT executive director believes almost all of the group’s $100m assets will be fire affected.

KIPT executive director John Sergeant said he believes “almost everything” of the group’s $100m assets will be fire affected. Picture: AAP

Kangaroo Island Plantation Timbers has been suspended from trading on the ASX while the company assesses damage after a “catastrophic” bushfire on Kangaroo Island ravaged the majority of its timber assets.

The company - which owns 86 per cent of the plantation forestry on Kangaroo Island - is surveying the extent of the damage after bushfires devastated the South Australian island.

KIPT executive director John Sergeant said he believes “almost everything” of the group’s $100m assets will be fire affected.

“We’ve had a catastrophic fire event. Fire emerged from the western end of the park and devastated everything in its path until it changed direction,” Mr Sergeant said.

“Our timber assets on the island are in excess of $100m - the vast majority of that has been affected by fire.”

Before trading was suspended, KIPT shares were valued at $1.96 on the ASX. In an announcement, the company said it expected to resume normal trading before 31 January.

Mr Sergeant said a substantial insurance payout meant in some capacity the company was already back on its feet.

“We don’t yet know what’s salvageable - we’re in the timber equivalent of a medical triage,” he said.

“In some ways we’re on our feet already, but we want to contribute to the community’s recovery and ensure our assets don’t impact on recovery efforts.”