Stuart Chapman, Chairman of Elders Primary Wool,
stated in a recent article about the deal with the American carpet
giant CCA that, "Our aim is to get better value for strong wool that is
long term, profitable and sustainable".
Joint involvement
To achieve this not only takes the involvement of EPW and CCA but also
the commitment of growers to provide the increased wool volumes
required.
Profits returned
In turn, through the Cooperative model and specifically through PWC’s
50% ownership of EPW, the significant profits generated will be able to
be passed back to PWC members in a unique win-win arrangement.
Put simply:
• PWC owns 50% of EPW
• EPW profits from wool trading and from its market-leading initiatives
• PWC receives 50% of the profits of EPW
• Through the Cooperative model, these profits are then available to
PWC shareholders
Prompt return on your investment
PWC relies on members to purchase shares to appropriately capitalise
the business. But we don’t expect you to do that simply as a gesture of
goodwill! Quite the opposite in fact! Over its 35 year history, PWC has
paid in excess of $1,000,000 in rebates and dividends. Today, grower
shareholders earn a rebate based on the volume of wool traded at
auction through Elders Primary Wool. In the last financial year to 30
June 2008, rebates amounted to $159,000.
High returns
This rebate equates to an extremely respectable 15% return.
Simple calculation
• $500 buys 500 x $1 ordinary rebate shares
• One share is needed for every 5kgs of wool sold
• Therefore $500 covers 2,500kgs of wool
• A 3% rebate (plus GST) is paid per kg, so on 2,500kgs you get a $75
rebate
• $75 on your $500 investment = 15% per annum return • If you auction say 3,000kgs you would need to hold 600 shares
• In this case your $75 rebate would be retained and converted to 75 additional shares
• New shareholders should purchase shares appropriate to their estimated wool volumes
To become a shareholder, simply email the Secretary
for a copy of our prospectus from here, complete the
application form on the last page and mail it in with your cheque.
