TORONTO, ONTARIO--(Marketwired - Nov. 25, 2016) - Feronia Inc. ("Feronia" or the "Company") (TSX VENTURE:FRN) today released its financial results for the three months ended September 30, 2016. All amounts in this release are expressed in US dollars unless otherwise indicated.
Q3 2016 Highlights
- Produced 27,762 tonnes of fruit (Q3 2015: 24,020 tonnes), a year-over-year increase of 18%
- Produced 5,273 tonnes of Crude Palm Oil ("CPO") (Q3 2015: 4,496 tonnes), a year-over-year increase of 17%
- Oil extraction rate of 19% (Q3 2015: 19%)
- Revenue of $4.3 million (Q3 2015: $0.8 million) primarily from the sale of 5,650 tonnes of CPO at an average price of $735 per tonne (Q3 2015: 1,057 tonnes at $661 per tonne)
- Net loss of $2.6m (Q3 2015: net loss of $8.4m)
Xavier de Carnière, Chief Executive Officer of Feronia Inc. commented: "Our agricultural production continues to steadily grow, in line with our expectations. With trees responding well to the application of fertilizer, we are confident that our production growth assumptions will continue to materialize.
"It is important that we ensure we are adequately equipped for the expected growth in production over the coming few years and are therefore committing to industrial capital expenditure across all three plantations. The recently installed Lokutu boiler and turbine, once commissioned, pending the resolution of some unexpected technical issues, will quickly have a considerable positive impact on production, operational capacity and efficiency. We expect similar positive impacts at Boteka and Yaligimba as new boilers, which are currently being manufactured, are installed at each of these sites in 2017.
"It is worth reiterating that improvements in operational performance are intrinsically interwoven with our environmental and social objectives and vice versa. We will only succeed operationally if we deliver on our social and environmental commitments, and we will only succeed in delivering our environmental and social programme if we succeed operationally.
"Recent media attention has brought into the spotlight a lot of the good things we are doing on the ground. Whether it is that we employ several thousand people in remote areas, or the immense positive impact of our hospitals, rebuilding and renovation programmes for housing, schools, health care facilities and roads, or that we are one of the few organizations making a real positive difference to the lives of tens of thousands of people in one of the poorest countries in the world, we are proud of what we are trying to achieve both operationally and from an environmental and social perspective.
"Whilst the DRC is going through challenging times, both politically and economically, our determination remains undented and we continue to work hard to ensure that the Company's operational performance and growth matches our environmental and social ambitions and that good progress continues apace on both fronts."
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 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 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.