Mission NewEnergy Limited (Nasdaq: MNEL) (ASX: MBT), a global provider of environmentally sustainable biofuels, today announced its unaudited financial results for the second quarter of the 2012 fiscal year, ended December 31, 2011.
Mission is currently performing a re-structure of its operations and will require further funding to continue with its business plan. The company is working with funding providers; however, at this time no definitive agreements for further funding are in place.
Mission had a cash position of $5.75 million at 31 December 2012. This cash position will be reduced by US$3 million due to the investment recently announced in Indonesia. Mission’s annual fixed cash outflows has been around $10.5 million per year.
The current re-structure program is anticipated to reduce operating expenditure; however, at this time the profile of future operations and inturn its operational expenditure is dependent on the amount of further funding obtained by Mission.
“The company is in transition following an extended period of considerable headwinds industry wide. We are positive about the potential for the company in the future however, this is tempered with the realization of our current challenges given the funding requirements of the group,” said Nathan Mahalingam, Group CEO of Mission.
The management team continues to assess the status of its Jatropha operations and awaits 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.
The company’s refining operations continue to sell product into the Malaysian market and company expects that volume sales into the Malaysian market will continue to grow. On the 14 February 2012, the company downgraded its revenue forecast relating to sales into Europe. At this time the company has no further visibility on sales into this market.
All numbers presented in Australian dollars and unaudited unless stated otherwise.