Kiland has confirmed its intention to sell its massive Kangaroo Island land portfolio once its forestry to agriculture project is complete.
The board of the company - which owns more than 25,000 hectares on the island - informed shareholders at its annual general meeting this week that its current intention was to sell the estate once the reversion was complete.
Announced last year, the project was to see up to 270,000 meat sheep run across the vast holdings.
In a presentation to shareholders, Kiland said reversion was well underway with 1468 of forestry land harvested.
Agricultural operations have commenced on some reverted land, which has been sown to triticale while 3400 sheep had been bought as of October 30.
Reversion expenses totaled $11 million in 2023. Among the costs were the purchase of six tree harvesters, three stump grinders, four skidders, three tractors and and other equipment like discs, rakes, spreaders, seeders and support vehicles.
SHAREHOLDERS VOTE TO DELIST
Kiland's intention to delist from the ASX was backed by shareholders at its AGM, with close to 85 per cent of votes cast supporting the proposal.
The board said its reasoning for the move was that the listing was not providing shareholders with typical benefits, and there was little liquidity in the stock.
In a previous ASX announcement, chairman James Davies said the board had concluded they were "likely to obtain a higher price for the company's assets and/or attract a larger pool of potential investors in an unlisted environment".
With Kiland's Norbrac business harbouring "different risk profiles and strategies", the market found the two enterprises "difficult to price" under a single listing.
The company's official removal from the ASX is expected on December 29.
BIOCHAR PROJECT MAKING PROGRESS
Shareholders were also provided with an update on the company's biochar venture, with "significant progress" made in becoming a institutional grade carbon developer.
Kiland holds an 87.7 per cent share in Norbrac Limited, which owns KI Carbon Limited, the organisation that has the rights to produce biochar and Carbon Removal Credits on Kiland's estate in what would be the world's largest biochar project.
It aims to convert 4.5 million tonnes of fire damaged forestry timber into biochar over a 12-year period.
The project has a separate governance, management and capital structure to the agriculture venture.
The biochar production system has been "significantly upgraded" according to the investor presentation, "increasing the scaleability and delivery potential of the project".
Production is expected imminently, with the first local biochar deployment expected in the first quarter of 2024 and the first carbon removal credits secured in the second quarter.
Full production capacity is expected to be reached in March 2026.