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Clean Seas Shares Leap By 27% - Profit In Sight

Fish farmer Clean Seas Tuna’s shares have risen more than 27 percent after it forecast a AUS$ 4 million to AUS$ 6 million full-year loss and said a profit was in sight.

The result would be a significant 60 percent reduction on last year’s AUS$ 15.3 million loss.

The company has never posted a profit but says it is ahead of target to get one by 2015.

Its shares were 27.3 percent, or 0.3 cents higher, at 1.4 cents at 1230 AEST, having once traded at nearly AUS$ 1.80 in 2008.

The feed-related health problems that caused mass deaths among the kingfish it produced until last year were now resolved, the company said in a statement on Thursday.

Prices for its fish had also lifted 12 percent from last year to major buyer Japan’s sushi and table fish market.

An increase in Kingfish fingerling production from July onwards underpin profitability, it said.

Clean Seas did not provide specific numbers on Thursday, but chief executive Craig Foster has previously said the company would lift production from 500 tons to 1,500 hopefully within 12 to 18 months and eventually get to 3,000 tons.

The company had to write down the value of the business by AUS$ 29.7 million in the first half of the financial year, after suspending its South Australian tuna breeding program.