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JATCORP LIMITED — Capital/Financing Update 2013
Feb 21, 2013
65154_rns_2013-02-21_6cbcf9d0-c51e-4ff9-89f6-8dae08996251.pdf
Capital/Financing Update
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JATENERGY LIMITED ABN 31 122 826 242
ASX CODE: JAT
ASX ANNOUNCEMENT
22 February 2013
Update on Indonesian biofuel operations
AUSTRALIAN REGISTERED OFFICE
Floor 6, Suite 8 55 Miller Street PYRMONT NSW 2009 AUSTRALIA
CONTACT DETAILS
Telephone +61 2 9571 8300 Facsimile +61 2 9571 8200 Email [email protected] Web www.jatenergy.com
HIGHLIGHTS
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Final land payment made for subsidiary PT Jatoil Waterland.
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Indonesian biofuel operations now cash flow positive.
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Overall yields remain healthy despite drier conditions in 2012.
The board of energy company Jatenergy Limited is pleased to provide the following update on its Indonesian biofuel operations.
Operations now cash flow positive
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As announced earlier this year, Jatenergy’s investment into PT Jatoil Waterland has resulted in a positive cash flow, three years since signing of its original contract in 2009 with PT Waterland Asia Bio Ventures for the establishment of PT Jatoil Waterland. Under the agreement between Jatenergy and Waterland, Jatenergy initially paid for over 60% of the full 25 year land access fee for the 2000 ha of jatropha fields. The remaining fee was to be paid from profits obtained from the sale of jatropha seed.
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----- Start of picture text ----- 1000-100-200-300-4002010 2011 2012Loan balance ($,000)----- End of picture text -----
The balance of Jatenergy’s loan to its Indonesian biofuel venture is now positive, representing the operations becoming cash flow positive.
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As of the end of December 2012, the venture has yielded a total of over 5,600 tonnes of jatropha seed, of which about 4,840 tonnes has been used to extinguish Jatenergy’s loan to the venture. The remaining 760 tonnes of excess seed represents a profit.
With jatropha seed sales continuing, this positive balance is expected to grow over the coming years.
Locations of Jatoil Waterland jatropha plantations in central Java.
Yields remain healthy despite drier conditions in 2012
Jatenergy has received updated yield data for its jatropha operations. Seed production remains higher than was anticipated when the venture began, largely because of the suitability of the jatropha varieties being used to local growing conditions. While yields for 2012 remain healthy given the age of the jatropha trees, they are lower than in 2011, particularly in the latter half of the year. This decrease in yields is largely because of drier than normal growing conditions. Harvests across Java in 2012 are down in general compared to previous years because of the dry conditions prevailing in the area.
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----- Start of picture text ----- 2500Project 12000 Project 21500100050002010 2011 2012Annual yield (tonnes)----- End of picture text -----
The annualised jatropha seed yield for the two main project areas in Java shows a rapid and sooner-than-expected rise in yields. The fall in yields in 2012 is caused by drier-than-expected growing conditions. Should wetter conditions prevail in 2013, increases in jatropha yields are expected.
Jatropha curcas is a hardy species and able to survive the dry conditions experienced in 2012. Although jatropha produces less seed during dry periods, resulting in these lower yields, this hardiness mitigates against the investment risk of total crop failure.
Should wetter conditions prevail in 2013 than in 2012, increases in jatropha yields are expected as the plants from both currently-yielding project areas and more recently established project areas continue to mature.
About Jatenergy
Jatenergy Limited is a Sydney-based diversified energy company operating in both Australia and Asia. Jatenergy’s strategic focus is on producing cash returns from its coal and jatropha assets as well as implementing the proprietary Coal Plus technology for upgrading low grade coal into high value energy products.
Media and management contact
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Tony Crimmins 02 9571 8300 [email protected]
About Jatenergy
Jatenergy Limited is a Sydney-based diversified energy company operating in both Australia and Asia. Jatenergy’s strategic focus is on producing cash returns from its coal and jatropha assets as well as implementing the proprietary Coal Plus technology for upgrading low grade coal into high value energy products.
Directors Tony Crimmins Executive Chairman Richard Pritchard Non-Executive Director Mr Xipeng Li Non-Executive Director Mr Wilton Yao Alternate Director
Jatenergy Limited ABN 31 122 826 242 ASX code JAT Ordinary fully paid shares 98,565,568 Listed options 31,898,547