VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 26, 2016) - August 26, 2016: Feronia Inc. ("Feronia" or the "Company") (TSX VENTURE:FRN) today released its financial results for the three and six months ended June 30, 2016. All amounts in this release are expressed in US dollars unless otherwise indicated.
Q2 2016 Highlights
- Processed 35,560 tonnes of Fresh Fruit Bunches ("FFB") (Q2 2015: 23,350 tonnes), a year-over-year increase of 52%
- Produced 6,968 tonnes of Crude Palm Oil ("CPO") (Q2 2015: 4,534 tonnes), a year-over-year increase of 54%
- Average oil extraction rate of 19% (Q2 2015: 19%)
- Revenue of $3.9 million (Q2 2015: $3.5 million) primarily from the sale of 5,124 tonnes of CPO at an average price of $661 per tonne (Q2 2015: 4,004 tonnes at $787 per tonne)
- Net losses of $4.5 million (Q2 2015 net profit: $0.2 million); the difference being largely driven by the non-cash change in the value of convertible debentures with an expense of $3.1 million in Q2 2016 (Q2 2015 gain: $4.6 million)
- Completed first drawdown of $15 million from secured term facility agreement and, concurrent with the first drawdown, $31.33 million principal amount of Debentures and $2.7 million of accrued and unpaid interest converted into 291,693,813 common shares
Xavier de Carnière, Chief Executive Officer of Feronia Inc. commented: "Operations continued apace in the second quarter, our peak period, with impressive and expected increases in production resulting in the Company meeting its production targets.
"The new boiler and turbine at Lokutu are currently being commissioned; which, once complete, will have a considerable impact on production, operational capacity and efficiency at Lokutu. Such projects are important to the Company as they translate into progressively improved performance and cost savings which will help us achieve our long term goals.
"Whilst operational improvements and performance are naturally important, the wider positive effects that the ongoing resuscitation of this business has on the areas in which we operate are equally so. The majority of our expenditures relate to the payment of salaries, local services and taxes, all of which greatly contribute to local development. We are seeing increased economic activity around our operations, including the opening of new shops, a growing number of houses with solar panels and a wider availability of goods at lower prices. Improved operational performance also helps us in our ability to deliver an ambitious and extensive environmental and social programme.
"It is worth noting that our operational objectives and our environmental and social objectives are intrinsically interwoven. We will not succeed operationally without ensuring we deliver on our social and environmental commitments, and we will not succeed in delivering our environmental and social programme if we do not succeed operationally. It is not easy, nor will it be quick. We recognize and accept the scrutiny we are under and we are fully committed to achieving all of our objectives as we continue to rebuild this business. Seeing not just our own plantations but the surrounding regions and beyond coming back to life is our greatest reward."
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. We also have an arable farming operation which grows and processes rice.
- 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 3,800+ 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 105 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 is comprised of senior agriculturalists with 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, 2015, 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.