The guidance added some granularity to a statement issued on December 7 and charted the growing pains of a company making substantial progress on three fronts.
The WoodFibre arm remains profitable, AEG confirmed, as it finished the final quarter of last year producing 27,000 tonnes of wood chip a month for the MDF market and maintained its margins.
The firm said 2016 started well, although output has been hampered slightly the weather. The completion of a softwood production line should occur on schedule sometime in the second quarter. This will help ramp up output.
AEG confirmed the joint venture between its Timberlands arm and the Métis Settlement group in Canada had been “postponed beyond the first quarter” of this year.
The US$600,000 expenditure incurred during negotiations that was to be capitalised will now be charged to the profit and loss account, the firm said.
AEG also revealed it invested US$300,000 successfully testing its CoalSwitch technology – money it reckons was very well spent.
Boss Richard Spinks said: “Although the board is disappointed that it will be reporting losses for the Group for the full year, we remain very excited by the potential of AEG TimberLands and, particularly at the present time, AEG CoalSwitch.”