Black Earth Farming Ltd Q4 Report 2016

nt Release

Black Earth Farming Ltd Q4 Report 2016

St Helier, Jersey, 2017-02-24 08:00 CET (GLOBE NEWSWIRE) --
Low prices and reduced quality drive 2016 net losses of AR USD -10,6 mn (14.3
mn)

Blended yield (excl. root crops) down 8% y-o-y although up 25% over the 5-year
average. Production costs per ton stay 27% below 5 year average but increased
by 7% y-o-y due to reduced crop area and lower yield. Net loss in 2016 year
accounted for USD -10.6mn (14.3) due to significantly lower prices, lower
quality of winter wheat and smaller cropped area.

12M 2016 Highlights (vs. 12M 2015)

· Total revenue and gains of USD 95.7mn (130.4)

· Sales volume of 511kt (474)

· Average sales price after distribution cost of USD 113.5 per ton (143.8)

· Gross profit after distribution costs of USD 3.6mn (40.2)

· EBITDA of USD 2.3mn (20 excluding swap effect)

· FX income of USD 6.8mn (-7.9)

· Net loss of USD -10.6mn (7.2 excluding swap)

· Loss per share of USD -0.05 (0.07)

Q4 2016 Highlights (vs. Q4 2015)

· Total revenue and gains of USD 32.4mn (75.1)

· Sales volume of 192.8kt (293)

· Average sales price after distribution cost of USD 92 per ton (146)

· Gross profit after distribution costs of USD -4.7mn (16.1)

· EBITA of USD -3.6mn (12.9)

· FX income of USD 2.2mn (-1.3)

· Net loss of USD -7.3mn (7.4)

2016 harvest Progress

Wheat, barley and potatoes are fully harvested, Sunflowers are 97% harvested
with yields of 1.6 t/Ha. Corn is 99% harvested with yield of 5.2 t/ha

Subsequent Event

On the 13th of February, the Company entered into an agreement to sell its
Russian operations to Volgo-DonSelkhozinvest LLC and distribute the proceeds to
the shareholders. The purchaser has paid a USD 10mn deposit. The estimated
purchase price is approximately USD 184mn in cash and closing is subject to
approval by BEF’s shareholders and regulatory approvals.

CEO Comment Financial Overview (p.5)
Highlights (p.2)
--------------------------------------------------------------------------------
· Market Development USD million Q4 ‘16 Q4 ‘15 12M 12M 12M
‘15 ‘15
-------------------------------------- -------
· 2016 Harvest ‘16 Excl.*
Progress
· 2016 Crop Sales SWAP
------------------------------
Crop Volumes Sold 192,8 292,5 510,5 474,1 474,1
(ktons)
· 12M Results 2016 Total Revenue & 32,4 75,1 97,1 130,4 130,4
Gains
Gross Profit after -4,7 16,1 3,6 40,2 40,2
Distribution
· Risks G&A -3,4 -4,8 -15,5 -19,1 -19,1
EBITDA -3,6 12,9 2,3 29,2 20,0
· Potential land & EBIT -6,0 9,2 -5,3 21,4 12,3
asset sale
· Summary FX income 2,2 -1,3 6,8 -7,9 -7,9
Net profit -6,9 7,4 -10,6 14,3 7,2
--------------------------------------------------------------------------------

Webcast details:

Date: Friday, 24 February 2017

Time: 09:00 CET

Hosts:

Black Earth Farming CEO — Richard Warburton

Black Earth Farming CFO — Rostislav Samotsvetov

Dial-in details:

Russia 8 800 500 9283 or +7 495 213 1767

Sweden +46 (0)8 5033 6574 or 0200 880 389

UK +44 (0)330 336 9105 or 0800 368 0934

US +1 719-325-2385 or 888-349-9618

Conference title: Black Earth Farming, 4th Quarter 2016 results

Conference ID: 5677261

Webcast link:

https://pgi.webcasts.com/starthere.jsp?ei=1136563

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:

Rostislav Samotsvetov, Chief Financial Officer, Black Earth Farming Ltd., tel.:
+7 (473) 2065630, +7(910) 246 7800

Notes to Editor:

Black Earth Farming Limited is a farming company operating in Russia. Its
shares are listed as depository receipts on Nasdaq OMX Stockholm. The Company
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 256,000 hectares of what is possibly some of the world's most fertile
soil. In 2015, Black Earth Farming harvested approximately 150,000 hectares,
effectively making it one of the world’s largest public farming companies by
cropped area. The Company’s main products are wheat, corn, barley, sunflower
and potatoes.

Corporate website: www.blackearthfarming.com

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