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Gunns admits mill may never be built

gunns.jpgThe proposed mill

Timber company Gunns has admitted for the first time its planned Tamar Valley pulp mill may never be built.

The troubled company announced its annual results on the Australian Stock Exchange on August 28, reporting a net profit after tax of $64.5m for the 2008 financial year.

That represents a drop of about 27 per cent on last year’s result.

The result is also lower than a recent downgraded profit forecast of $67m.

Gunns statement says it is still pursuing finance for its planned $2b pulp mill, but has for the first time admitted it may never be built.

Shares in the company recently slumped by 25 per cent in three days and its price closed at $1.67 before a trading halt was announced last week.

[from ABC News]