Feronia Inc. Reports Q1 2018 Results
May 30 2018 - 8:23AM
Feronia Inc. (“Feronia” or the “Company”) (TSX-V:FRN) today
released its unaudited financial results for the quarter ended
March 31, 2018. All amounts in this release are expressed in
US dollars unless otherwise indicated.
Q1 2018 Highlights
- Produced 32,405 tonnes of fruit (Q1 2017: 26,301 tonnes), a
year-over-year increase of 23%
- Produced 6,549 tonnes of Crude Palm Oil (“CPO”) (Q1 2017: 4,869
tonnes), a year-over-year increase of 35%
- Oil extraction rate of 20.2% (Q1 2017: 18.5%)
- Revenue of $5.4 million (Q1 2017: $2.3 million), a
year-over-year increase of 135%, primarily from the sale of 6,571
tonnes of CPO at an average price of $776 per tonne (Q1 2017: 2,422
tonnes at $789 per tonne)
- Completed second tranche of private placement of $8.5
million
Xavier de Carnière, Chief Executive
Officer of Feronia Inc. commented: “Whilst production
levels continue to improve and, at first glance, it would be easy
to consider that much of the hard work required to turn this
business around has been completed, the reality is that there is
still much to be done and considerable challenges to overcome.
“Our Lokutu mill is currently not as reliable as
we would want, creating a bottleneck that we must overcome rapidly
if we want to cope with the increasing fruit production. At Boteka,
the commissioning of our fibre boiler has suffered some delay and,
with it expected to come on-line in late June 2018, considerable
work will be required to make up for missing part of the peak
production period. Fortunately, our new boiler and turbine at
Yaligimba are performing like a Swiss watch and are fully meeting
our expectations.
“Aside from the technical challenges that we
continue to overcome one by one, we have now started implementing
the clauses of our social contracts recently entered into with our
communities. We also have adjusted the salaries of our workforce,
in line with the inflation index system that we put in place last
year, to maintain the purchasing parity of our workers’ income.
“We are no strangers to the challenges often
faced when operating in the DRC but are, as we have always been,
fully committed to ensuring that our employees and local
communities benefit from our presence. In that regard, we have
recently dedicated extra efforts and resources to help local
authorities, our workers and our communities should the recent
Ebola outbreak in the DRC affect Boteka. We hope that our
commitment is not tested in this instance but, should it be, we are
ready.”
For further information please
contact:
Xavier de CarniereChief
Executive Officer, Feronia Inc.44 (0)7468 697
658xavier.decarniere@feronia.comwww.feronia.com |
Paul DulieuDirector of
Communications and Corporate Development, Feronia Inc.44 (0)7554
521421paul.dulieu@feronia.comwww.feronia.com |
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 the thousands of people
we directly employ.
- 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 107 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
Cautionary Notes
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 two
major customers, 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, 2017, 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.
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