TREE Cambium Global Timberland Limited

TIDMTREE

RNS Number : 8279F

Cambium Global Timberland Limited

11 March 2020

11 March 2020

Cambium Global Timberland Limited

(the "Company")

Portfolio Update

The conditional sale of the Agua Santa tree farm in Minas Gerais, Brazil, announced on 8 August 2019, became unconditional on 11 March 2020 at a total price of BRL 30.0 million, translating to GBP5.01 million at today's exchange rate, or GBP4.52 million after deducting the wood sale revenue of BRL 2.95 million (GBP0.49 million) achieved to 31 October 2019. This compares with the current book value, as in the 31 October 2019 half year Report and Accounts (including the wood growth but excluding the wood sale revenue then achieved), of GBP4.47 million (GBP2.27 million for the growing wood and GBP2.20 million for the property). The buyer is the charcoal and pig iron company Santo e Dias, who have been purchasing timber from the property during 2019 and 2020. Payments already received under this wood supply contract are being deducted from the purchase price, with the balance being due over 24 months. Title will only pass to the buyer at the end of the payment period.

In addition, the Company announces today the signature of a conditional agreement for the sale of its tree farm at Ribeirao do Gado, in Minas Gerais, Brazil to Novas Fronteiras Agro Negocios Ltda, a subsidiary of the charcoal and pig iron company AGV. The agreement will result in total payments over a 33 month period which, at today's exchange rate, amount to GBP1.17 million (contracted as a total of BRL 7.0 million). As with the Agua Santa sale, above, the total consideration is to be paid net of revenues under the existing timber sale contract with the buyer. BRL 583,532 has already been received for timber sales and is to be treated as a down payment towards the BRL 7.0 million. Title will only pass to the buyer at the end of the payment period. This asset had been carried at GBP1.31 million (BRL 6.8 million) in the 31 October 2019 half year Report and Accounts. The contract is conditional on the completion of due diligence by the buyer which, once completed, will be followed by 33 monthly payments of BRL 194,438. The wood sale contract will remain in operation in the meantime. The Company will update the market on completion of the sale in due course.

The sales are in line with the Company's policy to realise its assets and will reduce operational expenditure and expedite further returns to shareholders in due course.

Tony Gardner-Hillman, Chairman, welcomed this news as a further significant step in the right direction against a backdrop of market conditions in Brazil which continue to be slow, a situation which was covered in more detail in the half year Report and Accounts for the six months to 31 October 2019, released on 25 January 2020.

Ribeirao do Gado now joins Agua Santa, also in Minas Gerais, as being committed for sale, with defined payments to be received over a defined timescale. This will not only generate predictable income but will reduce ongoing forest management and insurance costs, so significantly improving cash flow. The Company continues to hold its interests in Tocantins, Brazil and in one other property in Minas Gerais, Brazil and is in discussions to dispose of or monetise these assets.

For further enquiries please contact:

Chairman

Tony Gardner-Hillman

01534 486980

Broker and Nominated Adviser

W H Ireland

James Joyce

020 7220 1698

Administrator and Company Secretary

Praxis Fund Services (Jersey) Limited

01534 835831

Inside information

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014). Upon the publication of this announcement via Regulatory Information Service this inside information is now considered to be in the public domain.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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March 11, 2020 12:32 ET (16:32 GMT)

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