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Clean Ses Tuna Continues to Operate Debt Free with Good Kingfish progress

20 May 2013

AUSTRALIA - Clean Seas Tuna has had a strong Kingfish performance year to date has continued during April 2013 with strong growth rates and low mortality.

The positive operational results were coupled with a 12 per cent increase in farmgate pricing, which is anticipated to return an improved result for the six months to 30 June 2013.

Assuming the anticipated growth rates continue up to the more dormant winter period, the result from operations for the six months to 30 June 2013 is expected to be a loss in the range of A$1 million to A$3 million. This result will be in line with our strategy and compares with an operational loss of A$8.2 million for the corresponding half year period to 30 June 2012.

The Board anticipates the underlying operational loss for the financial year ending 30 June 2013 to be in the range of A$4 million to A$6 million. This compares with an underlying operational loss of A$15.3 million for the same period to 30 June 2012, and reflects around 60 per cent improvement year on year.

The operational performances noted above are before restructuring related asset impairment charges of A$29.7 million for the current financial year and A$15.5 million the previous year. The asset impairment charges were isolated to the first half of the current financial year. There were no asset writedowns taken in the second half year period to 30 June 2013 and the Directors do not anticipate any material writedowns will be required in FY2014.

Outlook

The Company is very pleased with the resolution of Kingfish health issues during the most recent Summer, and with the removal of overheads and non?contributory activities to significantly reduce the Company’s cost base. The cost reductions include the previously announced suspension of the Tuna propagation programme, a substantial reduction in workforce and the elimination of non-critical support expenditure. Efforts to deliver further cost efficiencies and increased productivity will continue throughout FY2014. Clean Seas Tuna continues to operate debt free.

The increase in this year’s Kingfish fingerling production is on track to commence in July 2013 and is the next key step in building our Kingfish inventory towards levels that will underpin the Company’s future profitability.

TheMeatSite News Desk



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