Woodchipper Gunns says it hopes to have investment in its controversial $2.5 billion pulp mill project in northern Tasmania finalised during the current financial year.
Gunns chief executive Greg L'Estrange said Gunns would not nominate a date, but acknowledged the project's funding process had been a long one.
Gunns stock dived 6.5 cents, or 9.29 per cent, to 63.5 cents.
"Going back in the history of the project, dates have been thrown out like confetti, and that hasn't been helpful for anyone," Mr L'Estrange told AAP on Wednesday.
"There's two things we are doing that give it most chance of certainty in the near term, hopefully this financial year.
"We have a very good structured process in place to engage with potential equity partners.
"The other one is that we are working hard to try to resolve a lot of the angst and historical conflict that the organisation (Gunns) has been involved with.
"At the moment it's not something that will be resolved immediately, but we're taking good pro-active steps to demonstrate that Gunns is changing."
Gunns said that in April 2010 it had initiated a formal investment process to secure equity investment for the pulp mill project at Bell Bay.
Three interested parties had progressed from the initial bid process and are undertaking detailed due diligence in relation to the investment.
Mr L'Estrange said the three parties were predominantly industry-based players considering matters such as fibre supply, technology and construction risk.
"We are making good progress on all of those fronts," he said.
"They also want to ensure that the issues around Gunns that have been prevalent for a period of time are at least largely resolved if not totally resolved.
"It's important for us to get the right, balanced outcome and be seen to be the right operator of a facility of this scale and complexity."
Mr L'Estrange said the project was being held in "ready" status to allow construction to start upon financial close.
The recent market for export woodchips had reinforced the merits of a sustainable, plantation-fed mill.
Mr L'Estrange said that whereas wood fibre value had remained static in real terms, pulp value had increased significantly and had a strong outlook.
"I think the (pulp mill) project will get up," he said.
"I believe that the rationale from both the product and from the Australian point of view is compelling."
Gunns on Wednesday announced a previously-flagged 50 per cent plunge in annual profit, blaming difficult trading conditions and the collapse of the managed investment scheme (MIS) sector.
Gunns posted an annual net profit for 2009/10 of $28.5 million, down 49.3 per cent from $56.2 million in the prior year.
It said the stronger Australian dollar had affected its competitiveness in Asian markets, with the traditional export woodchip market to Japan continuing to be hit by reduced demand as a consequence of the global financial crisis.
Gunns said the wood fibre business would continue to be affected by the value of the Australian dollar and activity levels in the key markets of Japan and China.
Volumes of hardwood woodchip exports were expected to recover through the 2011 year, but margins would remain under pressure, with the increased sales volume largely being achieved in lower grade products.
Earnings (EBIT) for the 2011 financial year were expected to be in the range of $50 million to $60 million, with a stronger second half result based on the progressive effects of cost savings and market improvements.
Gunns said it had made substantial progress in a sales program of non-core and non-profitable assets, which included the Tamar Ridge Wines business, native forest land and the Gunns retail hardware business.
Gunns again declared no dividend, saying resumption of dividends would depend upon performance improvements.
AAP