Yokohama, Japan/Bergen, Norway – 10 November 2023. Proximar Seafood AS (PROXI, or the Company) today reported its third quarter 2023 results. Proximar is continuing its significant operational progress and is preparing to transfer the first fish to the grow-out building in Q4, implying that the company is on track for the first harvest in Q3 next year.
“We are excited to take another important step towards our first harvest, with our Atlantic salmon increasing in size. The biological growth is ahead of expectations, and we are on schedule for the transfer of fish to the important next phase in the grow-out building”, says Joachim Nielsen, CEO of Proximar Seafood.
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The targeted long-term harvest level for Proximar is 5300 tonnes (HOG) Atlantic salmon per year in Phase 1.
Updated CAPEX and working capital needs
Total CAPEX is updated to 1240 MNOK, up from 1195 MNOK in Q2. This represents a 17% increase from start of construction two and a half years ago (excluding currency effects). Rise in operational cost drivers, financing and CAPEX require the Company to raise additional funds, totalling 165 MNOK. Proximar is evaluating several options for how to fund the additional capital need, seeking an optimal capital structure including debt, both in Norway and Japan throughout the coming months. The company will seek a solution together with the largest shareholders and has indications of several alternatives covering the majority of the capital need.
“We remain on track with our plan of first harvest in Q3 2024, and I am very pleased to see that the fish is growing steadily. We are running the very first commercial Atlantic salmon farming facility built in Japan, and with that comes several challenges, among them also some cost increases that necessitate additional funding. However, the project economics are still very robust, and the outlook remains promising. I’m confident that Proximar will be a leading supplier of Atlantic salmon for the Asian market in the years to come”, says Mr. Nielsen.
The highlights of the quarter are as follows:
• Completed handover of the facility
- In September, Proximar took ownership of the entire fish farming facility in Oyama, Japan. This marked the end of the Company’s construction works of the first commercial Atlantic salmon farming facility built in Japan.
• Drawdown of second tranche of bank debt
- In conjunction with the handover, Proximar Ltd. also completed the second and final drawdown of the JPY 8.8 billion blue-sustainability loan provided by Mizuho Bank, Shizuoka Bank and Development Bank of Japan. The second drawdown is marking the continued strong support shown by the Company’s Japanese banks.
• Preparing for first fish transfer to the grow-out building
- In the coming months, installation of the remaining RAS-equipment from AquaMaof will continue in the grow-out building. This enables the first transfer of fish from the hatchery and nursery building in Q4 2023, according to plan.
• Biological growth ahead of expectations
- The Company had seven batches in production at the end of the quarter, showing strong growth curves ahead of expectations. The performance of the system is stable, and mortality is low.
Additional funding requirement due to CAPEX and working capital related changes:
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Increased CAPEX of 90 MNOK combined in Q2/Q3
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The required financing, including CAPEX and working capital, is estimated to be around 165 MNOK and is planned to be covered by a combination of debt and equity.
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The timing of a large part of the working capital requirement is in 2Q/3Q 2024, before first harvest.
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Strong support from major shareholders in finding optimal solutions.
For more information, please see the presentation for the third quarter 2023 attached.
Proximar Seafood will present its financial results for the third quarter 2023 on Friday 10 November 2023, at 09:00 CEST.
The investor presentation will be streamed and will be hosted by CEO Joachim Nielsen and CFO Ole Christian Willumsen. The presentation will be held in English and questions can be submitted throughout the event. The streaming event is available through Proximar Q3 2023 • WN Event
For further information, please contact: Ole Chr. Willumsen, CFO, +47 48 21 34 29, ocw@proximar.com
This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
About Proximar Seafood
Proximar Seafood is a Norwegian land-based salmon farming company with its first production facility and production at the foot of Mount Fuji in Japan. The company inserted its first batch of eggs in October 2022 and plans first harvest in Q3 2024. Through land-based salmon farming, using high-quality ground water secured close to Mount Fuji, the company will produce fresh Atlantic Salmon, harvested the same day. Proximar’s location, near one of the world’s most important fish markets, implies significant advantages, both in terms of reduced cost and carbon footprint.
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