TORONTO, ONTARIO -- (Marketwired) -- 08/28/13 -- Feronia Inc. ("Feronia" or the "Company") (TSX VENTURE: FRN) today released its unaudited financial results for the three and six months ended June 30, 2013. All amounts in this release are expressed in US dollars unless otherwise indicated.
Q2 2013 Highlights and Developments
-- Record quarterly Fresh Fruit Bunch ("FFB") and Crude Palm Oil ("CPO") production since Feronia completed the acquisition and commenced the turnaround of the operation-- Produced 2,913 tonnes of CPO (Q2 2012: 2,139) from 15,544 tonnes of fruit (Q2 2012: 11,943 tonnes)-- Increase in FFB yield to 2.61 tonnes per hectare ("ha") (Q2 2012: 1.89 tonnes per ha)-- Increase in oil extraction rate to 18.74% (Q2 2012: 17.91%)-- Replanted 2,030 ha of oil palm (Q2 2012: 1,531 ha)-- Total revenue of $2.18 million (Q2 2012: $2.02 million) made up of: -- Oil palm plantation revenue of $1.90 million (Q2 2012: $2.02 million) from 2,236 tonnes of CPO at an average net price of $778 per tonne (Q2 2012: 1,767 tonnes at $990 per tonne) -- First revenue from arable farming operations of $0.28 million from sale of rice into local market-- Gross profit of $124,000 and operating loss of $(2.59 million), compared to gross loss of $(227,000) and operating loss of $(2.29 million) for Q2 2012-- Net loss attributable to Feronia of $(1.99 million) or $(0.01) per share, compared to net income of $19,000 or $0.00 per share in Q2 2012-- Progress made in demonstrating commercially viable rice yields-- Appointment of new Managing Director of Palm Oil division
-- 3,473 ha of oil palm had been replanted in the year to date as at August 19, 2013-- Appointment of new Chief Financial Officer-- All major construction work completed at Yaligimba palm oil mill. Final testing underway and oil production expected imminently
Bill Dry, CEO of Feronia commented: "Our palm oil business continues to progress well and the improvements we are making on the ground are reflected in the record levels of FFB harvest, CPO production and replanting achieved in the quarter. Having completed all major construction relating to the mill at Yaligimba, we are undertaking final testing and expect to commence oil production imminently.
"In our arable business, we have made progress in demonstrating commercial yields and we have made our first sales of rice into the local market. Both of these achievements are significant milestones."
About Feronia Inc.
-- Feronia operates large-scale commercial oil palm plantations and has commenced an arable farming operation in the Democratic Republic of the Congo (the "DRC").-- The Company, through its subsidiaries, holds concessions on land which is owned by the DRC government and on which its oil palm plantation and farming operations take place.-- The Company uses modern agricultural practices to operate and develop its oil palm plantations and arable farming. Feronia believes in the immense agricultural potential of the DRC for high-quality edible oils, oil derivatives and foodstuffs given the suitability of its climate and soil and the availability of a skilled workforce.-- The Company's management team is comprised of experienced business administrators and 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 jobs and economic growth for local communities.-- For more information please see www.feronia.com