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Revenues for Q4 2012 were $1,029,000, a 66% decrease on Q4 2011 revenues of $3,011,000. Revenues for the year ended December 31, 2012 were $7,130,000, a 4% decrease on the same period in 2011 (year ended December 31, 2011: $7,449,000).
The lower level of revenue in Q4 2012 when compared to Q4 2011 was due to two main factors:
i. Sales of CPO being considerably higher in Q4 2011 due to a reduction in stock levels at the end of 2011. Sales of CPO in Q4 2012 totalled 1,261 tonnes whilst sales in Q4 2011 were 2,834 tonnes.ii. A 15.7% reduction in the average sale price per tonne of CPO in Q4 2012 to $731 per tonne, compared with $867 per tonne in Q4 2011 as a result of lower prevailing global prices for CPO.
Revenues for the year ended December 31, 2012 were also impacted by an 7.9% reduction in the average selling price per tonne of CPO during the year to $906 per tonne, compared with $984 for 2011. This reduction reflects:
i. Lower prevailing global prices for CPO during 2012 compared to 2011.ii. 171 tonnes of lower quality CPO sold for $650 per tonne in the first quarter of 2012. This arose when fruit harvested at the Yaligimba plantation was being barged to the Lokutu plantation for processing. Latency between harvesting and processing led to an increase in the free fatty acid levels in this oil to higher than acceptable parameters. The lower quality of oil produced from fruit barged from Yaligimba to Lokutu contributed to the Company's decision to suspend the barging operation at that time.
However, the Company sold 6,993 tonnes of CPO in the year ended December 31, 2012, a 3.8% increase on the 6,737 tonnes of CPO sold in 2011.
The following table provides a summary of palm fruit production and CPO: Three months ended Dec. 31 12 months ended Dec. 31, 2012 2011 % Change 2012 2011 % ChangeFruit production (tonnes) 8,517 10,270 (17.1%) 38,596 46,632 (17.2%)Oil produced (tonnes) 1,600 1,769 (9.6%) 7,044 7,981 (11.7%)Oil extraction rate 18.8% 17.2% 18.3% 17.1%Cash used in operating activities ---------------------------- ----------------------------- ---------------------------- -----------------------------(Expressed in thousands of US dollars) Three months ended Dec. 31, Year ended Dec. 31,---------------------------------------------- ----------------------------- % % 2012 2011 Change 2012 2011 Change---------------------------------------------- -----------------------------Cash used in operating activities $ (1,094) $ (1,470) 26% $ (5,914) $ (13,576) 56%---------------------------------------------- -----------------------------Selling, General and Administrative Costs -------------------------- -------------------------- -------------------------- --------------------------(Expressed in thousands Three months ended Year ended of US dollars) Dec. 31, Dec. 31, % % 2012 2011 Change 2012 2011 Change------------------------------------------------- --------------------------Selling, general and administrative $ 1,932 $ 3,659 (47)% $ 9,196 $ 11,048 (17)%Other (gains) and losses 123 (44) (380)% 61 26 135%------------------------------------------------- --------------------------Selling, general and administrative costs $ 2,055 $ 3,615 (43)% $ 9,257 $ 11,074 (16)%------------------------------------------------- --------------------------
