Foresta Group Holdings has updated its share registry provider, extended its technology license with E3 Carbon, and deferred earthworks at its Kawerau project to Q3 2026, while maintaining a solid cash position.
- Change of share registry management to Boardroom Pty Ltd
- Conditional payment agreement with Putauaki Trust linked to lease progress
- Extension of technology license agreement with E3 Carbon to 2027
- Deferral of Kawerau project earthworks to avoid winter risks
- Strong cash balance of AUD 5.19 million and funding for five quarters
Registry and Lease Developments
Foresta Group Holdings Limited has announced a change in its share registry management services, transitioning from MUFG Corporate Markets to Boardroom Pty Ltd. This move aligns with the company’s efforts to streamline administrative functions as it progresses its core projects.
In parallel, Foresta executed a conditional payment agreement with the Putauaki Trust, contributing NZD 100,000 plus GST towards costs incurred while satisfying conditions for a binding lease agreement related to the Kawerau Stage 1 Project. This payment will be offset against future rental obligations once the lease is formalised, or refunded if the lease does not proceed, underscoring Foresta’s commitment to advancing this critical site.
Technology License Extension and Project Timing
Foresta has also extended its exclusive technology license agreement with E3 Carbon GmbH, originally signed in December 2024. The extension pushes key condition deadlines from the end of 2025 to the end of 2027, providing greater certainty around the long-term use of E3 Carbon’s advanced torrefaction technology in Australia and New Zealand. This technology is central to Foresta’s strategy to produce renewable pine chemicals and biomass pellets.
On the project front, the Kawerau Stage 1 earthworks have been deferred to the third quarter of 2026. This strategic delay aims to mitigate the risks and costs associated with winter construction and adverse weather, without impacting the overall project timeline. The company continues to follow industry best practices and robust governance frameworks to ensure successful delivery.
Sustainability and Partnerships
Foresta is advancing a feasibility study on low-carbon process heat options, including geothermal steam, in collaboration with New Zealand’s Energy Efficiency and Conservation Authority (EECA). The study has narrowed down potential solutions to three viable options, with results expected in the first quarter of 2026. This initiative reflects Foresta’s commitment to sustainable operations and reducing its carbon footprint.
Additionally, the company is actively securing forest supply agreements within New Zealand’s forestry sector and strengthening partnerships with local Māori iwi and corporations. These collaborations aim to foster mutually beneficial economic development and sustainable resource stewardship. Engagement with government bodies remains constructive, ensuring alignment with national policies and regional development goals.
Financial Position and Outlook
Financially, Foresta reported a cash balance of AUD 5.19 million as of 31 December 2025, supported by a $2 million convertible note facility. Operating cash flows were negative for the quarter, reflecting ongoing project development costs, but the company estimates it has sufficient funding to cover approximately five quarters of operations at current burn rates. Payments to related parties, including director fees and consulting, amounted to AUD 316,068 excluding GST.
Overall, Foresta’s quarterly update signals steady progress on multiple fronts, balancing operational prudence with strategic investments in technology and partnerships that underpin its growth ambitions in renewable pine chemicals and biomass.
Bottom Line?
Foresta’s careful pacing of project milestones and strategic agreements set the stage for critical developments in 2026, with lease finalisation and feasibility outcomes in focus.
Questions in the middle?
- Will the binding lease agreement with Putauaki Trust be finalised as anticipated?
- How will the deferred earthworks impact the overall timeline and costs of the Kawerau project?
- What low-carbon process heat option will Foresta select following the feasibility study?