CHARCOAL PRICES 2005 – 2009

In 2008 (before the project was progressed) it was reported by ABRAF in its published statistical yearbook for 2008. Charcoal prices were reported to have increased year on year over the longer term, this trend was expected to continue. The graph below shows the average prices of charcoal in comparison to coking coal between 2005 to 2007. Coking coal and charcoal at the time were the primary energy sources used within the Brazilian steel sector.

In addition to this historic data, further data relating to 2008 and 2009 charcoal prices were reported to clients published on the companies project mini website (www.gwm-tv.com) this data was produced from statistics regarding charcoal prices reported independently by AMS (Associação Mineira de Silvicultura). The average prices paid for charcoal between 2008 and 2009 and reported independently by AMS are therefore reproduced for clients within the tables shown below.

gwd, greenwood management, eucalyptus

TABLE 4

Average prices of charcoal and coking coal (Source: ABRAF 2008 statistical yearbook)

GWD Forestry, Greenwood management, eucalyptus

(Source: AMS monthly charcoal price reports)

CHARCOAL PRICE PROJECTIONS

Based on independent data reported by both AMS and ABRAF from 2007 to 2009, the company projected rates it felt were conservative at the time and could be achieved at harvest. Assuming first harvest at year 7, it was projected that prices for charcoal that could be achieved, should be in excess of R$107.98 MDC (per cubic meter of charcoal). These projected rates were published on the projects mini website in the financial projections section.

WOOD PRICES 2009

In 2009 the company reported on the domestic wood prices in the region supported using independent data supplied by LEF.

LEF reported that historically wood prices in the region had grown linearly from R$20.02 per cubic meter in 2002 to R$78.65 per cubic meter in 2009 increasing at an average rate of R$8.37 per year as shown in the graph to the right. Further to this it was projected at the time by LEF that this price trend may continue, and if so by 2017 wood prices within the region could reach R$137.24 per cubic meter by 2017.

gwd forestry, eucalyptus, greenwood management

TABLE 5

Average wood prices within the region of the projects 2002 – 2009 (Source: LEF)