Investment in GoldTeak

3sThrough this prospect of ownership in a managed teak plantation you can make a positive environmental impact whilst accruing a return on your investment. Become a Global Guardian through ownership of this wonderful natural resource. All investment projects, from a few trees to thousands of hectares, will be managed by GoldTeak, ensuring that your investment is as secure as possible and will reap the maximum financial, social and ecological benefit.

The increasing demand for teak wood, combined with the ever decreasing availability of this precious resource, makes this a very promising investment opportunity.

By investing with GoldTeak you can be assured you are sponsoring a project that aims to bring about reforestation in Indonesia. Even though we will be planting trees for harvest there will always be a tree habitat because of the thinning and re-planting program. We understand how important trees our for our climate and fresh water recycling. Our project is also in support of local farmers and their families through the uniqueness of integrating agriculture and forestry. While less species-rich than natural forest, this strategy should preserve more bio-diversity than the alternatives of monoculture plantations or clearance to crop agriculture. We shall involve the rural people to the utmost of our abilities by inviting them to be ‘stakeholders’ in the project and not to be alienated by it. Offering empowerment will not only reduce the poverty of rural Indonesians but improve their quality of life.

GoldTeak seeks accreditation to prove its forestry management strategy is sustainable. We do this so that our wood can ‘shout out’ about how green it is. Consumers will support our efforts and those of other accredited forestry projects and eventually illegal logging and unsustainable forestry businesses will suffer. We support the use of more wood as a renewable resource. We support wood as a renewable ‘green’ energy, after all, burning wood will only release as much carbon dioxide to the atmosphere as it absorbed from it, and the tree planted in its place will reabsorb it!

Investment in GoldTeak is a sound choice on the environmental and social view point. For our management strategy please refer to the section describing our Pilot Project. Now for the economics!

In the initial outlay, land price, seedling purchase, tools, land preparation and watchman set-up can be included. We estimate this cost at $8,450/hectare. Thereafter, yearly maintenance fees will be incurred. However, up to the first thinning this cost should be balanced by the income from the sponsorship to the locals of land for agricultural use.

Income from the wood produced as a result of the thinning stage, could be as much as $68,400.

Maintenance on the maturing trees should come in at $330 per year, so for a period of 16 years to full term this calculates at $5,280. The GoldTeak unique bonus scheme payment to the local watchmen amounts to $5,175 over the full term. Felling activities are estimated at $5,000 in total.

After harvest the tree stem must be processed through the saw mill. Transportation of logs in Indonesia requires a ‘transportation pass’ from the Forestry Officials. The fee for this pass is based on the volume of wood transported. On the assumption that one truck can carry 10 cubic meters, the pass will cost $40 per truck load of logs. Estimates make this fee tally up to $4,880 for the 25 years harvest.

Income from the mature logs depends on the wood grade, but our calculator page gives an estimate of $1,215,000. Comparing this to a compound interest savings scheme, (discounting income from the initial thinning), an initial investment of $28,785 would require an interest rate of 16.15 percent over 25 years to match this figure.

In conclusion, the ecological and environmental ideology, the mathematics above, and the risk management strategy give GoldTeak confidence that this opportunity is a perfect long term ethical investment.

The World Bank has announced a new Forestry Policy, which is highly relevant to GoldTeak’s objectives

“World Bank’s New Forestry Policy.pdf”
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