Keweenaw Land Association, Ltd. · OTC:KEWL
Keweenaw Land Association — Investor Presentation (May 2008)
13 slides from Keweenaw Land Association's investor presentation, May 2008
Slide 1: Keweenaw Land Association, Limited Investor Presentation
KEWEENAW LAND ASSOCIATION, LIMITED INVESTOR PRESENTATION May 2008
Slide 2: About Keweenaw
About Keweenaw • Keweenaw is a unique company – It is entirely a timberland and mineral rights company, a pure asset investment. – Its closest peer is Pope Resources (POPE). – It sell logs to sawmills, paper mills and plywood plants. – It is a small public company, not SEC registered, with a small s
Slide 3: Keweenaw Has A History Of Delivering Superior Shareholder Returns
Keweenaw Has A History Of Delivering Superior Shareholder Returns • Keweenaw stock price has increased by 574% since the end of 1998. 700 600 $280 Keweenaw Land Association, Limited Index: 1998 = 100 500 $219 Plum Creek Timber Co. (REIT) 400 $179 $158 300 $137 Potlatch (REIT) $85 $101 200 $39 $43 $6
Slide 4: Keweenaw's Mineral Reserves: Development of Mineral Rights
Keweenaw’s Mineral Reserves • Development of Mineral Rights – Company has 100+ years experience in mineral development and related due diligence. • Major mines on KLA property include: 1) the Groveland Mine, operating from 1925 to 1981, producing 34 million tons of iron ore; and 2) the White Pine mi
Slide 5: Keweenaw's Mineral Reserves
Keweenaw’s Mineral Reserves • Development of Mineral Rights (continued) – Mineral community watching closely the Kennecott Eagle Mine project—See Consultant’s Overview of Mineral Development Process—handout provided. – Will not sell or lease mineral rights at discounted prices. – Keweenaw mineral ri
Slide 6: Viability Of REIT Conversion
Viability Of REIT Conversion • We believe conversion to a timber REIT is not in the shareholders’ best interests. – $18.8 million distribution of E&P required. • Shareholder tax liability of $7.5 million created, not offset by post conversion tax savings. – Keweenaw too small to make REIT conversion
Slide 7: Non-SEC Company With Good Governance Practices
Non-SEC Company With Good Governance Practices • Keweenaw practices good corporate governance. – Five of six Board members are independent-not employed by the company and unpaid except for Board fees. – Five independent Board members serve as the Compensation Committee, and nominated members to the
Slide 8: Keweenaw Real Estate Properties
Keweenaw Real Estate Properties • Company created a successful real estate subsidiary to develop higher-and-better-use properties. – Added nearly $1 million to gross receipts through lot sales, adding incremental profits. – Sold 55% of developed lot inventory despite an increasingly depressed region
Slide 9: Sale of Carbon Credits and Conservation Easements
Sale of Carbon Credits and Conservation Easements • Keweenaw Board proactively studied other income producing opportunities. – Carbon sequestration and the sale of carbon credits. • There is an established market, but not all the Lake States standards are in place to make selling of timber carbon se
Slide 10: Strong Independent Board
Strong Independent Board • Keweenaw has a diverse and an exceptionally well qualified Board. – Marjorie E. Nesbitt, an independent director with over 25 years experience in trust management as a senior executive with Citibank Private Bank; extensive management, acquisition, and disposition of real e
Slide 11: Strong Independent Board
Strong Independent Board • Keweenaw Board (continued) – Donald J. Hoffman, an independent director with over 30 years experience in operations management and consulting in the forest products industry, international and domestic. Previously, a senior manager for International Paper Co. Chairman of a
Slide 12: Strong Independent Board
Strong Independent Board • Keweenaw Board (continued) – David Ayer. Chairman of the Board and President of the company since 1988. Provided proactive leadership of company to develop the log marketing program and further implement sustainable forestry objectives. Recently became senior managing memb
Slide 13: Other Points of Interest
Other Points of Interest • Keweenaw was the first publicly traded timber company to be certified by the Forest Stewardship Council for its sustainable forestry and environmental practices. Rated “well-managed” since 1994. • Numerous commendations by banks and investors on the level of operating deta
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