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Gunns gains after trading halt

SHARES in Gunns gained after a suspension in trade was lifted as the timber company maintained earnings guidance.

SHARES in Gunns gained after a suspension in trade was lifted as the timber company maintained earnings guidance.

Gunns said the company had current market guidance of underlying earnings before interest and tax for financial 2012 of $40 million to $50 million.

The company's shares came out of a suspension last week after Gunns reached an agreement with the Tasmanian government to abandon its native timber contracts.

In exchange, the company would receive $23 million of federal funding to settle its residual native forest contracts, while $11.5 million would be paid to the state-owned forestry manager to resolve Gunns's debts.

Shares in Gunns yesterday gained 2?, or 10 per cent, to 22.5?. The stock fell to a record low close of 20.5? when it last traded on August 4.

The company said that based on current market outlook, plantation hardwood woodchip sales volumes for financial 2012 were forecast at 2.4 million green tonnes.


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