Aug 31, 2010. /Lesprom Network/. Cathay Forest Products Corp. reported a net loss of C$393,925 on sales of C$17 million for the three months ended June 30, 2010 and a net loss of C$1.7 million on sales of C$24 million for the first six months of 2010. "The improved results are a combination of higher selling prices and lower production costs in our Russian logging operations as the company has ramped up its harvesting levels over the past few months. With impending major pulpwood contracts, we expect to lower harvesting costs by a further 15 to 20% by the end of the year. And in the final quarter of 2010, we anticipate commencing harvesting in our six and five year old poplar plantations in China", stated John Duncanson, the company's interim CEO and COO. Total revenue for 2Q 2010 increased 14% to C$17.0 million from C$14.9 million in 2Q 2009 and C$6.7 million in 1Q 2010. Selling prices in 2Q 2010 improved by an average of 7% for spruce logs and 9% for larch logs over average prices in 1Q 2010. Log sale volumes from Russian operations to China in the quarter were 58.3 million cubic metres, an increase of 106% over 1Q 2010. Most of the selling price increase and volume increase happened in the final two weeks of the quarter. Cathay Forest is a forest products company that manages approximately 1,000,000 hectares of standing timber properties and fast-growth, high-yield poplar plantations in China and Russia.