Feronia Inc. Reports Q1 2014 Results
May 30 2014 - 8:00AM
Marketwired
Feronia Inc. Reports Q1 2014 Results
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
Subsequent Events
- 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.
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 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.
Ravi SoodChairman, Feronia Inc.(647)
987-7663Ravi.Sood@feronia.comwww.feronia.comPaul DulieuInvestor
Relations Manager, Feronia Inc.44 (0)7554
521421Paul.Dulieu@feronia.comwww.feronia.com
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