Yes, it will. The figures set out in the information you received when first investing with Forest Enterprises are projections based on a number of assumptions and the actual costs at that time. Even with low inflation, costs will increase. All factors being equal, what you will pay in the future will represent the same buying power as the cost indicated in the relevant Investment Statement.
It’s important to remember three things. Firstly, Forest Enterprises has been in the business since 1972 and we know what all operations actually cost. Secondly, our credibility is on the line, and we are highly motivated to perform within budget. Thirdly, if inflation increases the costs (which are concentrated in the early years), it will also increase the returns.