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TORONTO, ONTARIO–(Marketwired – Aug. 25, 2017) – Feronia Inc. (“Feronia” or the “Company”) (TSX VENTURE:FRN) today released its financial results for the three and six months ended June 30, 2017. All amounts in this release are expressed in US dollars unless otherwise indicated.
Q2 2017 Highlights
- Produced 37,831 tonnes of fruit (Q2 2016: 35,558 tonnes), a year-over-year increase of 6%
- Produced 7,396 tonnes of Crude Palm Oil (“CPO”) (Q2 2016: 6,968 tonnes), a year-over-year increase of 6%
- Oil extraction rate (“OER”) of 19.6% (Q2 2016: 19.6%)
- Revenues of $5,433,000 (Q1 2016: $3,790,000) primarily from the sale of 6,842 tonnes of CPO at an average price of $707 per tonne (Q2 2016: 5,124 tonnes at $661 per tonne)
- Concluded agreements to sell remaining CPO production for 2017
- Completed third drawdown of $10 million from the previously announced DFI Debt Facility
- Published first Sustainability Report
- Net loss of $0.5 million or $0.01 per share (Q2 2016: net loss of $4.5 million or $0.01 per share)
- Amended 2012 Debenture terms, including extending maturity to 2022
Xavier de Carnière, Chief Executive Officer of Feronia Inc. commented:
“In spite of the challenging, ongoing situation in the DRC, our sales are in line with our expectations as we continue to fulfill the agreements made with our customers in the first quarter.
“Our capital expenditure programme, funded through the loan from our DFI lenders continues apace. The new fibre boiler at Lokutu is running well and the electricity turbine will be operational shortly. We are already seeing the oil extraction rate at Lokutu steadily improve, as anticipated, and we expect this trend to continue as we rehabilitate and upgrade other elements in the production process.
“Alongside the work at Lokutu, we are in the process of installing fiber boilers and turbines at both Boteka and Yaligimba. When completed, these projects will allow us to replace thousands of litres of costly fossil fuel we currently use in both the production process and the generation of electricity, with a sustainable and free fiber as fuel. This represents the single largest cost saving in the Company’s history and will have a considerable positive environmental impact in reducing our emission of greenhouse gasses.
“Palm oil is a basic and widely consumed commodity in the DRC. The steadily increasing quantity of CPO we are producing domestically means that, gradually we are fulfilling our goal of replacing expensive Asian imports with locally produced palm oil; a strategy which is already benefitting, and will increasingly benefit, the population of the DRC, the DRC economy, the environment and Feronia.”
About Feronia Inc.
- Feronia is an agribusiness operating in the Democratic Republic of the Congo (DRC).
- At the heart of Feronia lies a long established palm oil business, Plantations et Huileries du Congo (PHC), which has three remotely located plantations; Lokutu, Yaligimba and Boteka.
- When Feronia acquired its palm oil business from Unilever in 2009, it had suffered from years of underinvestment and considerable disruption caused by conflict in the DRC. Our initial focus has been on rebuilding the business and resuming production to secure its future and the livelihoods of our employees.
- Feronia’s plantations produce crude palm oil (CPO) and palm kernel oil (PKO). CPO is part of the staple and traditional diet of the Congolese and, with our products sold locally in the DRC, we are well placed to help decrease reliance on imports and increase food security and quality.
- Feronia prides itself on being the guardian of our 106 year-old palm oil business and its employees, communities, and environment. We have a long term commitment to improve the living and working environment of our employees and their communities and are committed to sustainable agriculture, environmental protection and community inclusion. Feronia has in place an Environmental and Social Action Plan which is focused on implementing environmental and social best practice and improving social infrastructure.
- Feronia is working towards certification by the Roundtable for Sustainable Palm Oil (RSPO) and is implementing IFC/World Bank standards for environmental and social sustainability. Our oil palm replanting programme is brownfield in nature – replacing old palms with new – and it has no reliance on deforestation.
- Feronia’s management team has extensive experience in managing both plantations and farming operations in emerging markets.
- For more information please see www.feronia.com
Except for statements of historical fact contained herein, the information in this press release constitutes “forward-looking information” within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as “anticipates”, “plans”, “proposes”, “estimates”, “intends”, “expects”, “believes”, “may” and “will”. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others: risks related to foreign operations (including various political, economic and other risks and uncertainties), the interpretation and implementation of the “Loi Portant Principes Fondamentaux Relatifs A L’Agriculture”, termination or non-renewal of concession rights or expropriation of property rights, political instability and bureaucracy, limited operating history, lack of profitability, lack of infrastructure in the DRC, high inflation rates, limited availability of debt financing in the DRC, fluctuations in currency exchange rates, competition from other businesses, reliance on various factors (including local labour, importation of machinery and other key items and business relationships), the Company’s reliance on one major customer, lower productivity at the Company’s plantations and arable farming operations, risks related to the agricultural industry (including adverse weather conditions, shifting weather patterns, and crop failure due to infestations), a shift in commodity trends and demands, vulnerability to fluctuations in the world market, the lack of availability of qualified management personnel and stock market volatility. Details of the risk factors relating to Feronia and its business are discussed under the heading “Risks and Uncertainties” in Feronia’s Management’s discussion and Analysis for the year ended December 31, 2016, a copy of which is available on the Company’s SEDAR profile at www.sedar.com. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Xavier de Carniere
Chief Executive Officer
44 (0)7468 697 658
Director of Communications and Corporate Development
44 (0)7554 521421
Fri, 25 Aug 2017 21:00:00 GMT