eco2 forests company brief may2010
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WWW.ECO2FORESTS.COM - US STOCK SYMBOL:
ECOF
WWW.ECO2FORESTS.COM - US STOCK SYMBOL:
ECOF
Publicly listed US Company, trading under the US Stock Symbol ECOF
Created to deliver large scale sustainable, lumber-producing forests and the preservation of old growth forests
Innovative E4 Philosophy - embracing positive Environmental impact and delivering Economic returns, while fostering Employment and Education
Projects implemented around the world under the Global Forestry Plan
Global Forestry Plan currently has over 1.5 million acres of land under review
WWW.ECO2FORESTS.COM - US STOCK SYMBOL:
ECOF
The detailed and specific plan to create a global network of forests
Goal is to deliver large scale forestation projects with a positive environmental and economic impact
These projects create carbon credits and the supply of renewable lumber
The Global Forestry Plan allows for reforestation, afforestation and avoided deforestation projects
WWW.ECO2FORESTS.COM - US STOCK SYMBOL:
ECOF
The primary tree selected for use in the Global Forestry Plan
Fast Growth – 20 feet in first year, 65 feet in 3-5 years, tree thickens until year seven when it reaches harvest maturity
Carbon sequestration among the highest of any tree worldwide. Typically create 2.5-2.7 carbon credits every 7 years cycle.
Post harvest the Kiri Tree naturally regrowsfrom the stump and begins another 7-year cycle.
WWW.ECO2FORESTS.COM - US STOCK SYMBOL:
ECOF
The New Forests Sustainability Model for the Global Forestry Plan has been designed to enable a revenue model that combines pre harvest carbon revenue with post harvest and long-term lumber revenue returns.
WWW.ECO2FORESTS.COM - US STOCK SYMBOL:
ECOF
The Forest Forecast model has been designed from the ground up in 1,000 acre modules to enable replication to create large scale and measurable forests of any size.
The table below demonstrates forecast lumber and carbon credit revenue and expenditure from a 1,000 acre new forest model over a single target harvest cycle of 7 years.
Total Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
REVENUE
Carbon Revenue - $4,600,000 - - - - - -
4th Year Thinning
Harvest- - - - $29,396,000 - - -
7th Year Harvest - - - - - - - $86,250,000
Total Revenue $120,246,000 $4,600,000 - - $29,396,000 - - $86,250,000
EXPENDITURE
Forest Project
Establishment - $1,500,000 - - - - - -
Mill and Milling - - - - $5,000,000 - - $7,187,000
Forest Maintenance - $1,319,000 $798,000 $817,000 $836,000 $906,000 $878,000 $950,000
Total Expenditure $20,191,000 $2,819,000 $798,000 $817,000 $5,836,000 $906,000 $878,000 $8,137,000
PROFIT
Annual Position $100,055,000 $1,781,000 $798,000 $817,000 $23,560,000 $906,000 $878,000 $78,113,000
Cumulative Profit $100,055,000 $1,781,000 $983,000 $166,000 $23,726,000 $22,820,000 $21,942,000 $100,055,000
WWW.ECO2FORESTS.COM - US STOCK SYMBOL:
ECOF
The Forest Forecast model is forecast to generate significant revenue throughout the lifetime of the project. Carbon revenue begins in the first season of planting with lumber revenue beginning after the fourth year.
The graph above outlines forecast lumber and carbon credit revenue generated from a 1,000 acre new forest model over the first 10 years.
$0.00
$50,000,000.00
$100,000,000.00
$150,000,000.00
$200,000,000.00
$250,000,000.00
$300,000,000.00
$350,000,000.00
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Y7 Harvest
Y5 Harvest
Carbon Credits
Forecast
revenue
following Y10
is projected to
remain within
1-2% of that
year through
to project
completion.
Projects are
forecast to
operate for up
to 50
years, before
replanting may
be required.
WWW.ECO2FORESTS.COM - US STOCK SYMBOL:
ECOF
The Project Production Pipeline has been designed to effectively manage new project inquiries through to mobilization in the Global Forestry Plan
A total of 1.5 million acres of projects are currently in various stages of the project Pipeline.
WWW.ECO2FORESTS.COM - US STOCK SYMBOL:
ECOF
14,000 acres 3 million Kiri Trees planted
6.5 million tons of CO2
absorbed from the atmosphere per cycle
6.5 million carbon credits generated
per cycle
$84 million revenue per cycle
Sustainable harvest cycles of 7-years
560 million board feet of lumber produced per
cycle
$1.49 billion in lumber revenue
per cycle
WWW.ECO2FORESTS.COM - US STOCK SYMBOL:
ECOF
Lumber - The unique properties of the Kiri Tree offer a lumber with unique and marketable properties that has applications in many different product types. Harvest cycles of 7 years, and the ability of the tree to regrow from the harvested stump, assures a low cost sustainable regeneration of new lumber.
Carbon - Carbon dioxide (CO2) is emitted into the atmosphere from human induced activities. The Kiri Tree is known to be among the highest carbon absorbing trees in the world. Each Kiri Tree generates approximately to 2.5 carbon credits every 7 year cycle. Carbon credits are intended to be sold and traded on global markets.
Project Partnership - ECO2 Forests offers landholders the opportunity to achieve significant returns from their land and invest in the project developed on their land. Profit share is the most common return on investment with land type and size, investment level key determinants in the level of return. Landholders have the option of being passive or active in the project.
Investment - ECO2 Forests offers an investment for individual and institutional investment that has significant benefit for the environment as well as a sustainable long-term outlook. It is intended to provide investors with an opportunity to invest through purchasing publicly traded shares on the market, invest in Company share offers (Private Placement Memorandum, PPM) or directly into a specific project. Landholders can also directly invest in their project to increase their returns.
WWW.ECO2FORESTS.COM - US STOCK SYMBOL:
ECOF
Education
Training facilities ECO2 Education Centre
Leading Green
Technology
Employment
Local, regional & global Lab, greenhouse & forest Harvest & milling
Economic
Company revenue Shareholder returns Landholder returns
Environment
Sustainable eco systems Renewable forests Carbon Sink
WWW.ECO2FORESTS.COM - US STOCK SYMBOL:
ECOF
ECO2 FORESTS Inc
Ray Smith, Chief Operating Officer
E) [email protected] M) +61 402 894 567