Tempo Offices, Unit B9,
431 Roberts Rd, Subiaco, Western Australia, 6008
Tel: + 618 9445 1006
Fax: + 618 9204 2383
Email: invest@missionnewenergy.com
27 January 2012
ASX ANNOUNCEMENT
Mission to Re-Structure Operations Mission NewEnergy Limited (NASDAQ:MNEL, ASX:MBT), a global provider of environmentally sustainable biofuels, today announces that management has commenced a detailed review of its operations in-light of its current cash position and visibility on its Jatropha operations.
Today the company also announces the material completion of
the 2011
Jatropha harvest season. The harvest is significantly lower
than company expectations.
The company believes that the lower than expected harvest
season is a result of historically planting wild seed
varieties which have large yield variability in its early
years of growth before the trees mature. The Company expects
maturity to be achieved in the seventh year of planting. On
average, the Company's current acreage is less than 3 years
old.
Based on this, management is re-evaluating its productive
acreage and yield expectations. The company expects that both
productive acreage and yield estimates will be materially
down graded and awaits the completion of the
2012 harvest season in December 2012 to provide further
clarity. The company has decided not to undertake further
planting of Jatropha until yield from existing acreage is
determined.
"Structural changes to the business are absolutely necessary
in light of the current stage of development of the Jatropha
operations. We continue to believe in the strength of our
Jatropha business long term; however, given our current cash
position the company needs to review all its strategic
options," said Nathan Mahalingam, Group CEO of Mission
NewEnergy.
Management believes the company has a viable refining
business and that in the long term its Jatropha operations
will be profitable. In light of this positive
long term outlook, we need to re-structure the business to
allow the company to conserve cash. The re-structure will
likely include a reduction in operating expenditure on all
fronts, divestment of non-core assets and raising further
equity capital. As at 31 December 2011, the company had A$5.7
million in cash.
- Announcement Ends -
Mission NewEnergy
Limited is a global provider of sustainable, renewable
energy. Operating in Asia, India, Australia, Europe and North
America, Mission NewEnergy is a biodiesel producer and
Jatropha plantation company. At full capacity we can produce
105 million gallons of biodiesel. Jatropha Curcas, an
inedible biofuel feedstock, is being cultivated by Mission's
contract farmers on arid, marginal lands. Through the
realization of Jatropha by- product value, Mission is working
towards a zero cost of sustainable non- edible fuel source.
To learn more, visit
www.missionnewenergy.com.
For more information and a copy of this announcement, please
visit:
www.missionnewenergy.com or contact:
James Garton
Head of Corporate Finance, M&A Phone: + 1 (210) 841-5741
james@missionnewenergy.com
distribué par | Ce noodl a été diffusé par Mission NewEnergy Limited et initialement mise en ligne sur le site http://www.missionnewenergy.com. La version originale est disponible ici. Ce noodl a été distribué par noodls dans son format d'origine et sans modification sur 2012-01-27 08:25:37 AM et restera accessible depuis ce lien permanent. Cette annonce est protégée par les règles du droit d'auteur et toute autre loi applicable, et son propriétaire est seul responsable de sa véracité et de son originalité. |
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