Obtala Limited (LON:OBT), the agricultural and forestry company which recently completed the US$14.6mln acquisition of African forestry business, WoodBois International has issued a positive update on its operations for the second quarter of 2017.
The statement largely reiterated previously announced information, including news that six forestry management plans have now been approved over 153,500 hectares of its concessions in Mozambique.
The group also pointed out that the forestry cutting season has begun, after a delay, but with better productivity due to new equipment, processes and procedures, with 250 logs being cut per day versus 90-180 logs per day last year.
The company also said it has continued to make a number of important hires, including an experienced sawmill manager, Henning Visser, who will oversee production at Uape and the new development at Nampula.
On the agricultural front, In Tanzania, the group said it has planted melons and its market garden, and has decided to plant mangoes for its first orchard crop.
In a note to clients, analysts at broker VSA Capital said: “A positive operational update from OBT and we continue to be impressed by the speed at which the company is progressing a number of separate, but related, operations, given the challenging countries in which it operates.”
The broker reiterated a ‘buy’ rating and 36p price target on Obtala shares which held steady in morning trading at 17.12p..