WELL RESEARCHED PROJECTS: Each year Rewards continues to
receive high ratings from independent research houses, with extensive
experience in determining quality agribusiness projects.
COMPETITIVE FINANCE ARRANGEMENTS: By providing attractive
finance packages, Rewards Group’s projects complement many wealth
creation strategies for participating Growers.
OWNER MANAGERS: The shareholders of Rewards Group actively
manage Growers' investments on a day to day basis. Rewards Group’s
focus is on returns to Growers - not ASX listed shareholders.
A precious resource in Asia
The rapidly rising prices for Sandalwood, some 18% per
annum for more than 10 years, is a function of increasing
demand and a dwindling supply.
Growers can capitalise on the opportunity to grow Sandalwood to be sold to lucrative
Asian markets. The world Sandalwood marketplace (predominantly India, China, Taiwan,
other Asian countries and the Middle East) can rapidly absorb new supplies of at least
8,000 tonnes per annum of Australian Sandalwood.
There are 2 main commercial species of Sandalwood in the world: Australian Sandalwood
(Santalum spicatum) and Indian Sandalwood (Santalum album).
Australian Sandalwood has the following uses:
Sandalwood, when ground into a
powder, can be processed into
incense sticks (or joss sticks).
In India alone, some 500 million
incense sticks are burnt on a
daily basis for health, family,
religious and other significant
Sandalwood oil (distilled from
the Sandalwood heartwood) is
used in the manufacture of
perfumes, soaps, cosmetics,
chewing gum and tobacco
Exports of native sources of Australian Sandalwood peaked at 14,355 tonnes in 1920.
Even though global demand for Sandalwood is strong today, less than 2,000 tonnes are
exported from Western Australia on an annual basis. This is principally due to the lack of
Rewards Group has invested more than $51 million of Growers capital for the successful
establishment of 5,599 hectares of Australian Sandalwood plantations in the Western
Australian Wheatbelt. The supply of Australian Sandalwood from these plantations will
help meet global demand for Sandalwood.
Rewards’ objective is to increase Sandalwood exports via plantation grown Australian
The trade in Sandalwood has occurred for over 2,500 years. The use of Sandalwood in
India and China has been documented since 500BC and it is still used extensively in both
As a rule of thumb, the price of Australian Sandalwood is generally one-third of the price
of Indian Sandalwood, mainly due to it having lower oil content.
The Project will operate for approximately 20 years and will be progressively harvested between ages 5 and 18. The Project aims to produce high quality Sandalwood. Sandalwood is native to Western Australia and has been exported to Asian markets for over 150 years. It is an aromatic wood highly prized in Asia for its use in joss sticks (incense) and as a source of essential oils. Sandalwood oil is used as a base in many cosmetics and perfumes.
The Rewards Group Sandalwood Project 2007 (Supplementary) is the latest in an ongoing annual release of Sandalwood plantation forestry projects that have been offered by Rewards Projects Ltd.
The PDS offers 2,000 Woodlots of 0.5 hectares each at an issue price of $5,000 (inclusive of GST) per Woodlot.
Growers can obtain immediate taxation benefits and fees will be tax deductible in the financial year in which they are incurred.
The Project is supported by Australian Taxation Office Product Ruling 2007/87.
Finance options with up to 100% gearing available.
No ongoing costs will be charged to Growers on an annual basis, other than a very small amount annually for insurance against fire and other insurable events such as windstorm and hail.
Independent agribusiness research reports will be published shortly.
The world Sandalwood market struggles to meet rising demand with available supply and as such the price of this precious timber has continued to rise dramatically.
With increased demand for Sandalwood in Asia, declining global supplies, Government incentives for forestry projects in Australia and environmental benefits, the development of Sandalwood plantations in Western Australia makes sense.
DISCLAIMER: Rewards Projects Ltd has issued a Product Disclosure
Statement dated 14 December 2006 and Supplementary
PDS dated 29 October 2007 (SPDS) for the Rewards Group
Sandalwood Project 2007 (ARSN 121 784 325) which
details the terms of the offer. Anyone wishing to invest
should consider the contents of the SPDS and complete the
application form in the SPDS.
The information in this brochure does not constitute
personal investment advice and has been prepared without
taking into consideration any particular client's objectives,
financial situation or needs. Because of this, before acting
on any information in this brochure, you should consider
whether the advice is appropriate for your objectives,
financial situation and needs and consult an independent
professional if necessary. You should obtain the PDS or
other offer document relating to the Project and consider
this before making any decision about whether to invest.
The information contained in this brochure is provided in
good faith and believed by Rewards Projects Ltd to be
accurate at the time of completion. However, it makes no
representation or warranty as to the accuracy, reliability or
completeness of this information. Except to the extent that
statutory liability cannot be excluded. Rewards Projects Ltd,
its directors, employees, associates, related entities, agents,
advisers and consultants have no liability (including liability to
any person by reason of negligence or negligent misstatement)
for any statements, opinions, information or
matters (expressed or implied) arising out of, contained in or
derived from, or for any omissions from, the information
provided in this brochure. Nor do they guarantee the
success or performance of any Project, the payment of any
return from an investment in any Project or the taxation
consequences of any investment in a Project.