RusForest Provides Operations Update

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| Source: RusForest AB
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Stockholm, 2014-03-10 08:00 CET (GLOBE NEWSWIRE) -- RusForest AB (publ) (“RusForest” or the “Company”) (NASDAQ OMX: RUSF), a Swedish forestry company with operations in Russia, announces preliminary Q4 2013 and full-year 2013 production.

Harvesting

  • Q4 2013: RusForest sawlog harvesting increased 13% to 187,067 m3 in Q4 2013 compared to 164,936 m3 in Q4 2012.
  • Full-year 2013: RusForest sawlog harvesting increased 11% to 711,488 m3 in 2013 compared to 638,719 m3 in 2012.

Sawmilling

  • Q4 2013: RusForest sawnwood production increased 2% to 68,267 m3 in Q4 2013 compared to 66,778 m3 in Q4 2012.
  • Full-year 2013: RusForest sawnwood production increased 5% to 263,765 m3 in 2013 compared to 251,059 m3 in 2012.

Anton Bogdanov, the Company’s Group COO, commented, “In addition to increasing harvesting and sawmilling volumes in the fourth quarter, we were able to increase our average sales price realization for sawnwood by 4% in Q4 2013 compared to Q3 2013.  With the recent start-up of the Arkhangelsk pellet mill and the sale of our non-core Boguchany assets, we are making significant progress with the operational turnaround.”

Northwest Russia

Arkhangelsk

Arkhangelsk harvesting produced 26,937 m3 of sawlogs in Q4 2013 compared to 34,055 m3 in Q4 2012. Lower volumes were a result of suspending harvesting operations in unprofitable forest areas.

The Arkhangelsk sawmill (LDK-3) produced 31,664 m3 of sawnwood in Q4 2013 compared to 31,611 m3 in Q4 2012.

The construction of the pellet mill at the LDK-3 sawmill is close to completion, and the plant is now in the test-production phase with full capacity expected by the end of March 2014. Photos of the pellet mill are available on the Company’s website at http://www.rusforest.com/ldk-3.html.

Eastern Siberia

Magistralny

Magistralny harvesting produced 92,952 m3 of sawlogs in Q4 2013 compared to 65,157 m3 in Q4 2012. Harvesting in forest lease areas controlled by third parties in Q4 2013 totaled 50,233 m3 – more than half of total harvesting – in order to secure sawlogs suitable for Japanese production.

The Magistralny sawmill produced 20,806 m3 of sawnwood in Q4 2013 compared to 15,453 m3 in Q4 2012.

The average Magistralny sawnwood price increased by 31% in Q4 2013 compared to Q1 2013.

 

Boguchany

Boguchany harvesting produced 67,178 m3 of sawlogs in Q4 2013 compared to 65,724 m3 in Q4 2012.

The Boguchany sawmill produced 15,797 m3 of sawnwood in Q4 2013 compared to 19,714 m3 in Q4 2012. Lower volumes were a result of the late arrival of winter in Siberia. Sawlog hauling operations were suspended in November due to wet and muddy road conditions.

As previously announced, RusForest has sold the Boguchany sawmill, Boguchansky LPK, for $8.0 million and has agreed to sell the Boguchany harvesting company, RusForest Angara LLC, to the same buyer for $5.8 million.

About RusForest AB

RusForest is a Swedish forestry company operating in Eastern Siberia and the Arkhangelsk region of Russia. The Company is listed on NASDAQ OMX Stockholm First North (ticker symbol “RUSF”).

RusForest AB's Certified Adviser on First North is Pareto Securities AB.

For additional information, please visit the Company’s website at www.rusforest.com or contact:

Gustav Wetterling, CFO & Investor Relations, telephone: +46 8 771 85 00