Feronia Inc. Reports 2018 Results
April 30 2019 - 6:32PM
Feronia Inc. (“Feronia” or the “Company”) (TSX-V: FRN) today
released its audited financial results for the year ended December
31, 2018. All amounts in this release are expressed in US dollars
unless otherwise indicated. A copy of the audited financial
statements of the Company for the year ended December 31, 2018 is
available on the Company’s SEDAR profile at www.sedar.com.
2018 Highlights
- Produced 197,055 tonnes of fruit (2017: 143,572 tonnes), a
year-over-year increase of 37%
- Produced 40,674 tonnes of Crude Palm Oil (“CPO”) (2017: 27,189
tonnes), a year-over-year increase of 50%
- Revenue of $29.1 million (2017: $21.1 million), a
year-over-year increase of 38%, primarily from the sale of 36,299
tonnes of CPO at an average price of $701 per tonne (2017: 24,609
tonnes at $775 per tonne)
- Completed installation of new fiber boiler at Boteka
- Commenced construction of new Lokumete mill
- Closed second tranche of $8.5 million private placement with
Straight KKM 2 Limited
- Entered into unsecured subordinated short term loan facility of
up to $3 million with existing shareholders
Xavier de Carnière, Chief Executive Officer of Feronia
Inc. commented:
“The increase in production in 2018 was in line
with expectations, and highlights the predictability we are
beginning to experience in the operational aspect of this business.
The same cannot be said for palm oil prices though, which were very
disappointing, especially Palm Kernel Oil, which hampered our
ability to fund the final steps towards profitability through our
operational cash flow. However, we are seeing signs of price
recovery in 2019.
“Our optimism also extends to the work started
on the Lokumete mill, which is expected to be one of the most
modern palm oil mills in Africa when completed. We are also pleased
to report that our research division, the Centre de Recherche en
Agronomie Tropicale de Yaligimba (Creaty), is making progress in
re-establishing our research and development initiatives as world
class.
“The election in the DRC in late 2018 created
considerable uncertainty for both the Company and people in the
DRC. Completion of the election and the peaceful transition of
power reinforces our confidence that we are building a company in a
country which has tremendous potential and is showing steady
progress.
“The DRC was once a leader in palm oil and, in
many ways, where industrial palm oil cultivation began. Various
challenges have affected the country over the years and it lost its
position of prominence and became a substantial importer of palm
oil and derivative products. With increased stability, the DRC can
again look to regain its position at the forefront of the palm oil
industry and we will play an important role in it achieving
that.”
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
521421 paul.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 108 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 NotesExcept 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, 2018, 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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