strong demand for kingfish

4 August 2011
Company Announcement
Australian Securities Exchange Limited
EXPANDING KINGFISH DEMAND BRING NEW CASHFLOW
POSITIVE RESULTS FOR CLEAN SEAS TUNA
Clean Seas Tuna Limited (ASX: CSS) is pleased to announce that Australian and international demand for its kingfish product increased substantially during the 2010-2011 financial year, yielding positive cash flow benefits for the Company.
Furthermore, demand for the product continues to outstrip supply to the extent that Clean Seas expects the kingfish operations to remain cash flow positive in the current year to 30 June 2012.
The kingfish business moved to cash flow positive during FY11 by A$1.2 million, with strong net cash inflow of $900,000 during the fourth quarter, boosted by steady price increases and the sell-down of frozen inventory.
While the sell-down of inventory has provided a one-off cash inflow, the Company believes that the kingfish operating business will remain cash flow positive in the current 2011-2012 financial year.
Notwithstanding the high Australian dollar, continuing improvement in kingfish sale prices in both the export and domestic markets had seen farm-gate returns increase by over 15 per cent during the past year ended 30 June 2011.
Demand has certainly increased as improved market acceptance of our kingfish product has been enhanced by our Board?s strategy of balancing production to market demand.
This is a very pleasing result for all involved and most encouragingly, we expect the trend to continue into FY12.
An annualised positive cash flow contribution from the kingfish business is expected as fish prices d operational costs are further reduced.
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Clifford Ashby Managing Director