BioFuels Journal

Mission NewEnergy Limited (NASDAQ:MNEL, ASX:MBT), a global provider of environmentally sustainable biofuels, announces Jan. 27 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.

FOr more information, call + 618 9445 1006.

See Related Websites/Articles:

• Mission NewEnergy

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