Black Earth Farming Ltd 1Q Report 2012

Black Earth Farming Ltd. 

21.05.2012 08:00
---------------------------------------------------------------------------

St Helier, Jersey, 2012-05-21 08:00 CEST (GLOBE NEWSWIRE) -- 

Positive Operating Cash Flow as Spring Seeding gets
Underway 

Positive 1Q operating cash flow of USD* 3.5 million as 57% of carry-in
stock was sold. 

Improved q-o-q sales price although higher quality crops remained in
inventory a/o 31 March. 

Relatively low winter kill of 4% but late spring results in slightly
reduced 2012 area of lower margin crops.  

Strategic sale of 9,500 hectares of low quality land for USD* 1.1
million profit. 

    

1Q 2012 Highlights
(vs. 1Q 2011) 

-    Sales volumes of 120.5
thousand tons (16.7) at average price per ton of USD* 186 (235)  

-    Sales revenue of USD*
22.8 million (4.3) 

-    Operating loss of USD*
-8.0 million (-10.9) 

-    Net loss of USD* -6.4
million (-15.3) 

-    Net loss per share of
USD* -0.05 (-0.12)  

-    Operating cash flow of
USD* 3.5 million (-10.6) 



Events after the
Reporting Period 

-   Land Sale;
Approximately 9,500 hectares consisting of grass
land and poor quality crop land was sold for USD* 3.1 million in Voronezh
region. A USD* 1.1 million profit on sale will be recorded in 2Q 2012. 

-   2012 Crop; 
Late spring has delayed spring seeding but with better
y-o-y operational progress. Total 2012 crop area expected
slightly lower at approximately 225 thousand hectares with a reduced area of
lower margin crops.     



CEO Comment Highlights
(p.2 in report) 

-     1Q Sales & Market Development 

-     1Q Results 2012 

-     Voronezh Land Sale 

-     Spring Seeding Conditions & 2012 Crop
Area 

-     Price Risk Management Progress 



Financial Overview
 

USD* million                                                1Q 2012
         1Q 2011          

Total Revenues & Gains                                  
        23.3                      1.1                        

Gross Result                                            
                  (1.7)                      (4.5)          
           

EBITDA                                                  
                      (3.6)                      (8.5)                    
 

EBIT                                                    
                         (8.0)                      (10.9)                    
 

Net Income                                              
                   (6.4)                      (15.3) 

 * The USD equivalent figures are provided for information purposes
only and do not form part of the interim consolidated financial statements -
refer to note 2 (d). 

Please see attachment for complete report. 



Webcasted Telephone Conference Details: 



Date:                        
Monday 21 May 2012 

Time:                       
10:00 CET 

Hosts:                      
Black Earth Farming  CEO - Richard Warburton 

                                                        
       CFO - Alexander Betsky 

                                                       
        IR Director - Erik Lystedt 



Dial-in details:                     Russia 810 8002 198 40 11  

                                           
Sweden +46 (0)8 5052 0204 or 0200 125 762  

                                            UK
+44 (0)20 7190 1253 or 0800 358
5263 

                                            US
+1 480 629 9818 or 1 866 225 8754 



Conference Title:               Black Earth Farming
1Q Report 2012 

Conference ID:                   454 00
58 

Webcast link: 



 http://event.on24.com/r.htm?e=462705&s=1&k=0F147A38447E7
201BD324405E47D4F1F 

Please quote the Conference ID or Conference title to
access the call. 

Please call in 5 minutes before the conference starts
 

For additional information, please contact:

Erik Lystedt, Director of Investor Relations, Black Earth Farming Ltd., tel:
+44 (0) 2071 178 100 



Notes to Editor:

Black Earth Farming Ltd. is a leading farming company, publicly listed on
Nasdaq OMX Stockholm and operating in Russia. It acquires, develops and farms
agricultural land assets primarily in the fertile Black Earth region in
southwest Russia. Black Earth Farming has gained a strong market position in
the Kursk, Tambov, Lipetsk and Voronezh areas, controlling some 318,000
hectares of what perhaps is the world's most fertile soil. 

In 2011 Black Earth Farming harvested over 230,000 hectares, effectively making
it one of the world's largest farming companies by cropped area. The Company's
main products are wheat, barley, sunflower and rape seeds which account for 90%
of production volumes. 

Corporate website: www.blackearthfarming.com
News Source: NASDAQ OMX



21.05.2012 Dissemination of a Corporate News, transmitted by DGAP - 
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---------------------------------------------------------------------------
 
Language:     English
Company:      Black Earth Farming Ltd.
              
               
              Sweden
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         SE0001882291
WKN:          
 
End of Announcement                             DGAP News-Service
 
---------------------------------------------------------------------------