Feronia Inc. Reports Q3 2018 Results
November 29 2018 - 5:00PM
Feronia Inc. (“Feronia” or the “Company”) (TSX-V: FRN) today
released its unaudited financial results for the three months ended
September 30, 2018. All amounts in this release are expressed in US
dollars unless otherwise indicated.
Q3 2018 Highlights
- Produced 52,842 tonnes of fruit (Q3 2017: 37,131 tonnes), a
year-over-year increase of 42%
- Produced 11,077 tonnes of Crude Palm Oil (“CPO”) (Q3 2017:
6,943 tonnes), a year-over-year increase of 59%
- Oil extraction rate of 20.9% (Q3 2017: 18.7%)
- Revenue of $6.9 million (Q3 2017: $6.2 million), a
year-over-year increase of 11%, primarily from the sale of 8,750
tonnes of CPO at an average price of $770 per tonne (Q3 2017: 7,408
tonnes at $784 per tonne)
Xavier de Carnière, Chief Executive
Officer of Feronia Inc. commented:
“We continue to take great strides forward.
Production continues to increase in line with expectations and a
59% year-on-year increase in CPO production for the quarter is very
encouraging, as is the new boiler and turbine at Boteka which were
recently commissioned and are running well. The Lokutu boiler
continues to give us some operational issues although we are
actively working to resolve these.
“Alongside the agricultural and industrial
improvements, there are many other very exciting developments
happening on the ground which demonstrate our commitment to
becoming a showcase of sustainability for the DRC palm oil
industry. These include the ongoing implementation of our social
protocols with a new school opening at Yaoselo, Lokutu earlier this
month, as well as a number of other ongoing initiatives including
training women at Yaligimba to drive tractors to evacuate fruit,
which is already delivering splendid results, and commencing a
partnership with Marie Stopes International, to help empower women
and girls to take control of their futures.
“Whilst the environment in which we operate
remains challenging, the fundamentals of our business are moving in
the right direction and we are demonstrating we are on the right
track. It is important we maintain momentum and so we are looking
to strengthen our financial position to put this business on the
firm footing it very much deserves.”
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For further
information please contact: |
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Xavier de Carniere |
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Paul Dulieu |
Chief Executive
Officer, Feronia Inc. |
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Director of
Communications and Corporate Development, Feronia Inc. |
44 (0)7468 697 658 |
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44 (0)7554 521421 |
xavier.decarniere@feronia.com |
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paul.dulieu@feronia.com |
www.feronia.com |
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www.feronia.com |
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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 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,
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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