We believe that TFS will likely follow Timbercorp and Great Southern into ignominy and failure. In our opinion, TFS’s model resembles such collapsed agricultural MIS companies and their Ponzi-like structure: TFS does not generate significant cash from sales of its sandalwood, which for the most part has yet to be harvested. Instead, TFS is reliant on raising capital to plant new vintages, operate its business, make payments on its ballooning debts and pay off earlier investors. Interest payments reached 50% of cash EBITDA in FY 2016, and total borrowing has increased by another AU$ 65 million so far in FY 2017. Without access to the capital markets, TFS’s financial statements indicate it will struggle to service its debts, let alone repay them.