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Feronia Inc (2)
Symbol FRN
Shares Issued 346,938,173
Close 2017-08-25 C$ 0.21
Market Cap C$ 72,857,016
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Feronia loses $500,000 (U.S.) in Q2

2017-08-25 17:08 ET - News Release

Mr. Xavier de Carniere reports

FERONIA INC. REPORTS Q2 2017 RESULTS

Feronia Inc. has released its financial results for the three and six months ended June 30, 2017. All amounts in this release are expressed in U.S. dollars unless otherwise indicated.

Q2 2017 highlights:

  • Produced 37,831 tonnes of fruit (Q2 2016: 35,558 tonnes), a year-over-year increase of 6 per cent;
  • Produced 7,396 tonnes of crude palm oil (CPO) (Q2 2016: 6,968 tonnes), a year-over-year increase of 6 per cent;
  • Oil extraction rate (OER) of 19.6 per cent (Q2 2016: 19.6 per cent);
  • Revenues of $5,433,000 (Q1 2016: $3.79-million), primarily from the sale of 6,842 tonnes of CPO at an average price of $707 per tonne (Q2 2016: 5,124 tonnes at $661 per tonne);
  • Concluded agreements to sell remaining CPO production for 2017;
  • Completed third drawdown of $10-million from the previously announced DFI debt facility;
  • Published first sustainability report;
  • Net loss of $500,000 or one cent per share (Q2 2016: net loss of $4.5-million or one cent per share).

Subsequent events:

  • Amended 2012 debenture terms, including extending maturity to 2022.

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

"In spite of the challenging, ongoing situation in the DRC, our sales are in line with our expectations as we continue to fulfill the agreements made with our customers in the first quarter.

"Our capital expenditure program, funded through the loan from our DFI lenders, continues apace. The new fibre boiler at Lokutu is running well and the electricity turbine will be operational shortly. We are already seeing the oil extraction rate at Lokutu steadily improve, as anticipated, and we expect this trend to continue as we rehabilitate and upgrade other elements in the production process.

"Alongside the work at Lokutu, we are in the process of installing fibre boilers and turbines at both Boteka and Yaligimba. When completed, these projects will allow us to replace thousands of litres of costly fossil fuel we currently use in both the production process and the generation of electricity, with a sustainable and free fibre as fuel. This represents the single largest cost saving in the company's history and will have a considerable positive environmental impact in reducing our emission of greenhouse gasses.

"Palm oil is a basic and widely consumed commodity in the DRC. The steadily increasing quantity of CPO we are producing domestically means that, gradually, we are fulfilling our goal of replacing expensive Asian imports with locally produced palm oil; a strategy which is already benefiting, and will increasingly benefit, the population of the DRC, the DRC economy, the environment and Feronia."

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.

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 the company's products sold locally in the DRC, Feronia is well placed to help decrease reliance on imports and increase food security and quality.

We seek Safe Harbor.

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