08:15:53 EDT Thu 28 Mar 2024
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Feronia Inc (2)
Symbol FRN
Shares Issued 55,205,051
Close 2015-08-25 C$ 0.12
Market Cap C$ 6,624,606
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Feronia loses $3.08-million (U.S.) in Q2

2015-08-28 08:58 ET - News Release

Mr. Xavier de Carniere reports

FERONIA INC. REPORTS Q2 2015 RESULTS

Feronia Inc. has released its financial results for the three and six months ended June 30, 2015. All amounts in this release are expressed in U.S. dollars unless otherwise indicated.

Q2 2015 highlights

  • Produced 23,350 tonnes of fruit (Q2 2014: 20,083 tonnes), a year-over-year increase of 16.3 per cent;
  • Produced 4,534 tonnes of crude palm oil (CPO) (Q2 2014: 3,660 tonnes), a year-over-year increase of 23.9 per cent;
  • Fresh fruit bunch (FFB) yield of 2.14 tonnes per mature hectare (ha) (Q2 2014: 2.09 tonnes per mature ha);
  • Oil extraction rate (OER) of 19.4 per cent (Q2 2014: 18.2 per cent);
  • Revenue of $3.5-million (Q2 2014: $4.0-million) primarily from the sale of:
    • 4,004 tonnes of CPO at an average price of $787 per tonne (Q2 2014: 4,195 tonnes at $814 per tonne);
    • PKO sales of $210,000 (Q2 2014: $360,000).
  • Net loss of $3,088,000 or six cents per share (Q2 2014: net loss of $4,866,000 or (nine cents) per share);
  • Entered into subscription agreements for private placement of up to $9.18-million (U.S.) secured convertible debentures with CDC and the African Agriculture Fund (AAF) and amended the terms of the January, 2015, debentures.

Subsequent events

  • Agreement signed for the purchase, installation and commissioning of a BioCube1 biodiesel generator at Yaligimba.

Xavier de Carniere, chief executive officer of Feronia Inc., commented:

"Since 2014, global commodity prices have largely been in decline. Oil prices are down 60 per cent, copper and soya 30 per cent, sugar 39 per cent, coffee 20 per cent and pork 50 per cent. Palm oil is no exception with global prices down by approximately 50 per cent in this period with prices now at their lowest level since the beginning of the last up-cycle in early 2009.

"Whilst the DRC palm oil market is slightly insulated from global price fluctuations, an influx of cheap imports from Angola due to the deterioration of Angola's currency has caused pricing pressure in the DRC. Additionally, as an organization, we have faced tighter access to capital markets, political uncertainty surrounding upcoming elections and a number of other factors; all of which would discourage many.

"However, in these rough seas, we have continued to make considerable progress operationally. Our KPIs continue to improve, we have diversified our customer base by entering into sales contracts with two new refiners, we have made significant progress towards energy independence through the advancement of our fibre boiler project and we have made a strategic decision to advance a biofuel generation project which will provide extra diversification and, combined with our fibre boiler project, substantially reduce our dependence on high carbon footprint imported fossil fuels. At the same time we have progressed our environmental and social action plan and are seeing measurable positive changes on the ground.

"The progress we are making is down to the hard work and unwavering and precious dedication of our staff, management and two largest shareholders and I am confident that we will succeed in our collective aim of re-establishing a sustainable, profitable enterprise which has environmental and social best practices at its core."

We seek Safe Harbor.

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