OK John, I'll give the numbers a try:
A board foot is 1x12x12" or 144 cu in.
A cubic foot is 12 bd ft or 1728 cu in (12x12x12").
A cubic meter is 35.31 cu ft or 423.77 bd ft (39.37x39.37x39.37")
The sawmill capacity figures to be 80,000 bd ft per day.
That's a pretty big sawmill, especially for Brasil. Cut the figures in half for the basic inefficiency of sawmills. That's still 200 trees a day capacity. Translates to $70,000 per day.
The reason the mahogany price seems so low at $1.75 is that the buyer still has to transport the wood overseas and recut and finish it before he has a salable product. Madera cuts rough lumber, not finished wood.
I notice on the Peruvian property Madera is using a volume figure of 5000 ft per acre in timber (which I would guess is a low estimate). Assuming that property is in the Amazon area of Peru, there are a lot of logistics problems to be solved. The 270,000 cu ft annual harvest number is meaningless, since its 1000 times their mill capacity. They'll do well to sell off most of that timber to other lumber mills.
Tthe way Madera must operate is to cut their own wood as weather and reaources permit, and to buy in wood from other producers in order to keep the mill at capacity. The bottlenecks in the process are transportation and mill production.
The company figure was $3,000,000 inventory on hand. That would be 1.7mm ft of lumber or about 45 days mill capacity on hand.
I'm very impressed with this company. The numbers are right, the product is in great demand, and their methods are first class. I'm happy to be part of it.
Regards |
