TORONTO, ONTARIO – August 29, 2018: Feronia Inc. (“Feronia” or the “Company”) (TSX-V: FRN) today released its unaudited financial results for the three months ended June 30, 2018. All amounts in this release are expressed in US dollars unless otherwise indicated.
Q2 2018 Highlights
Produced 51,090 tonnes of fruit (Q2 2017: 37,831 tonnes), a year-over-year increase of 35%
Produced 10,555 tonnes of Crude Palm Oil (“CPO”) (Q2 2017: 7,396 tonnes), a year-over-year increase of 43%
Oil extraction rate of 20.7% (Q2 2017: 19.6%)
Revenue of $7.6 million (Q2 2017: $5.9 million), a year-over-year increase of 29%, primarily from the sale of 8,780 tonnes of CPO at an average price of $784 per tonne (Q2 2017: 6,842 tonnes at $772 per tonne)
Refinanced ESG Loan Facility
Xavier de Carnière, Chief Executive Officer of Feronia Inc. commented:“Whilst the quarter started slowly with a variety of factors negatively affecting performance, by June things were back on track and this trend has continued during July and August. The year-on-year increases in production and sales, whilst fully expected, are still pleasing to see and give us increased confidence that profitability is just around the corner. The commissioning of the new boiler at Boteka is now complete and Boteka is performing well and achieving an oil extraction rate ahead of forecast. Unfortunately, the same cannot be said about Lokutu where technical problems related to the boiler continue to affect performance and further highlight the importance of rebuilding our Lokumete mill as soon as possible.
“Whilst there is much we can and have done to improve things internally, external factors still have a material impact on the Company. The current weakness in the global CPO price is putting pressure on domestic prices through the illegal import of finished oil products and, with presidential elections due in the DRC later in the year, increased uncertainty make it a difficult environment in which to operate. Nonetheless, as a company committed to the DRC and its people we continue to focus on factors within our control to make the business sustainable and as resilient as possible to exogenous factors.”
For further information please contact:
Xavier de Carniere Chief Executive Officer, Feronia Inc. 44 (0)7468 697 658 firstname.lastname@example.org www.feronia.com
Paul Dulieu Director of Communications and Corporate Development, Feronia Inc. 44 (0)7554 521421 email@example.com www.feronia.com
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. 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 107 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 has extensive experience in managing both plantations and farming operations in emerging markets.
For more information please see 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 two major customers, lower productivity at the Company’s plantations, 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, 2017, 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.