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Federal Court - Christian Aboriginal Infrastructure Developments ...

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Page: 328<br />

assumption that the Plaintiffs would have received a 20 year THA, for 200,000 m 3 annually, below.<br />

Suffice it to say at this point, I find that it was not an assumption but rather a fact. As such, the use<br />

of this assumption in his calculations was reasonable`.<br />

[1233] Also common to both projections was the assumption that once the mill had a secure timber<br />

supply, it would run for 12 months of the year and produce an average of 100,000 BF per shift,<br />

2010 FC 495 (CanLII)<br />

working two shifts.<br />

[1234] I find that as a matter of fact, the Plaintiffs’ mill was built to produce 100,000 BF. I also find<br />

that when adequate timber was available, the mill worked two shifts and did produce 100,000 BF<br />

per shift.<br />

[1235] Another common assumption included a $5 million investment in 2002 to improve the<br />

sawmill’s efficiency and lumber recovery factor.<br />

[1236] Lumber recovery factor (“LRF”), as defined by Mr. Brian Kerr, at page 1320 of the<br />

transcript, is, “basically a number that is derived by how many board feet of finished product you're<br />

getting out of a round log, from any particular piece of sawmill equipment”.<br />

[1237] With respect to the $5 million re-investment, Mr. Van Leeuwen testified, at page 1923, that:<br />

A. Well, I assumed the sawmill was – or assumed the sawmill<br />

was profitable, reasonably profitable, and I was advised by<br />

shareholders of the company that, given the profits the

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