TORONTO, ONTARIO--(Marketwired - May 30, 2014) - Feronia Inc. ("Feronia" or the "Company") (TSX VENTURE:FRN) today released its unaudited financial results for the three months ended March 31, 2014. All amounts in this release are expressed in US dollars unless otherwise indicated.
Q1 2014 Highlights
- Produced 2,851 tonnes of Crude Palm Oil ("CPO") (Q1 2013: 1,764) from 15,405 tonnes of fruit (Q1 2013: 9,550 tonnes), a year-over-year increase of 61.6%
- Revenue of $1.6 million (Q1 2013: $1.2 million) including from the sale of:
- 1,813 tonnes of CPO at an average price of $798 per tonne (Q1 2013: 1,517 tonnes at $674 per tonne)
- 94 tonnes of Palm Kernel Oil ("PKO") at an average price of $1,188 per tonne (Q1 2013: 120 tonnes at $648 per tonne)
- Commenced 2014 replanting target of 5,000 ha of oil palm on March 15, 2014
- Increase in oil extraction rate to 18.51% (Q1 2013: 18.47%)
- Fresh fruit bunch ("FFB") yield of 1.6 tonnes per ha (Q1 2013: 1.6 tonnes per ha)
- Continued ramp-up of production at new Yaligimba mill as harvesting and evacuation are improved and the plantation rehabilitation is advanced
- Harvested rice crop planted in October 2013 and achieved a yield of 2.6 tonnes of paddy rice per ha representing a 44% increase over the planting harvested in March 2013
- Planted 200 ha trial rice crop for harvest in June 2014
- Net loss attributable to Feronia was $(3.8m) or $(0.01) per share, compared to a loss of $(2.7m) or $(0.01) per share in Q1 2013
- 1,359 ha of oil palm had been replanted in the year to date as at May 28, 2013
Ravi Sood, Chairman of Feronia Inc. commented: "The Company continued to make good progress across all key operating metrics during Q1 with the 61% year-over-year improvement in FFB production driven largely by 3,368 hectares of mature palms at Yaligimba becoming harvestable following the new mill's completion in Q4 2013.
"During the quarter there were significant improvements in yields, harvesting and evacuation although FFB yield per hectare remained flat year-on-year. This is a direct result of the rehabilitation of the Yaligimba plantation and 1,000 hectares of newly mature (and therefore currently low-yielding) palms coming into production during the period. We anticipate a significant improvement in realised yields from Yaligimba over the coming months and from our new plantings over the longer term.
"Whilst we still have substantial work remaining to optimise yields and oil production, we are confident that with our re-planting programme and rigorous ESG processes we are continuing to create shareholder value and doing so in the most environmentally and socially sustainable manner possible."
About Feronia Inc.
- Feronia Inc. is a large-scale commercial farmland and plantation operator in the Democratic Republic of the Congo ("DRC").
- The Company uses modern agricultural practices to operate and develop its oil palm plantations and arable farming business division.
- Feronia believes in the immense agricultural potential of the DRC for high-quality foodstuffs and edible oils given its ideal climate, excellent soil and highly skilled and experienced workforce.
- Feronia's management team is comprised of senior agriculturalists with extensive experience in managing both plantations and large-scale mechanized farming operations in emerging markets.
- Feronia is committed to sustainable agriculture, environmental protection and providing support for local communities.
- 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 annual Management's Discussion and Analysis for the year ended December 31, 2013, 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.