Q1 REPORT
2024
23rd April 2024
CEO Kjell Lorentsen
CFO Rune Johansen
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Health, Security, Environmental & Quality
HSE&Q
PROJECT EXECUTION
An overriding focus for all our activities is that the health of our colleagues and fish is crucial for our success: "If the fish are doing well, then we are doing well."
Important areas of responsibility for Gigante Salmon AS as the project's owner is undoubtedly health, environment, safety and quality.
None accidents with high potential of risk during
Q1 2024.
Highlights Q1 2024
THE FIRST QUARTER OF 2024
- Smolt delivery 21 January, production started in production basin nr. 3
- External construction management, including construction manager and HSEQ coordinator, hired
- Production basin 2 under construction and progressing according to plan
- CEO terminated after revision of plan and forecast
- Kjell Lorentsen acting CEO from 19 March
EVENTS AFTER BALANCE SHEET DATE:
- Kjell Lorentsen CEO from 23 April
- Liv Monica Stubholt recommended as new chairperson of the board by the company's nomination committee.
- Increased bank financing from SpareBank 1 Nord-Norge of MNOK 120 secured. The loan commitment is supported by Export Finance Norway (Eksfin).
- Affirmed support from main shareholder, Gigante Havbruk AS, with up to MNOK 130 in a new contemplated private placement to secure financing of increased CAPEX.
- Sparebank 1 Markets engaged to act as financial advisor in connection with the contemplated equity financing. Expected to be
completed by end of Q2.
Financing
The CAPEX increase of MNOK 350 compared to the last outlined CAPEX budget will be financed by the following three sources:
- New equity (MNOK 130), Gigante Havbruk AS will support an equity financing for a total subscription amount up to MNOK 130.
- Bank loan (MNOK 120) from SpareBank 1 Nord-Norge, with support from Export Finance Norway
- Excess capital (MNOK 100) beyond the then identified need raised in the previous issue
Financing structure
MNOK
New equity | 130 |
Bank loan | 120 |
Excess capital | 100 | |
raised in previous | ||
issue | ||
Financing |
350
Capex Increase
The private placement is expected to be completed by end of Q2 2024.
Kjell Lorentsen
CEO
- Founder and long time CEO of Gigante Havbruk Group
- Has held leading positions in the fishery and aquaculture industry since the 70's.
- 6.5 years education in fishery and fishery economics.
Progress and milestones
The Norwegian Ministry of Fisheries lifted the requirement
for licenses for land-based aquaculture facilities in
Norway.
Gigante Havbruk began the | Entered into a lease |
agreement with an option | |
work on land-based flow- | to purchase Indre Lille |
through aquaculture facilities | Røsøy in Rødøy |
and site searches. | Municipality, Nordland. |
2016 | 2017 |
Construction of a flow-through canal, raceway, to optimize
water velocity, water exchange, and purification. A
2-year project. | The construction is |
Commencement of | completed, and the facility |
undergoes testing. | |
construction on Lille Indre | |
Rosøy. | Production commences |
with 0.6 million smolt in | |
Blasting and removal of rock | January, and 1,1 million |
masses.. | smolt In Q3. |
2021 | 2024 |
The work related to the plan program and impact assessment begins with
Rødøy Municipality.
The plan program was approved at the end of the year.
2018
First harvest in Q2.
Release of 2.2 million smolt in Q3.
2025
Rødøy Municipality approves the rezoning from agricultural and natural
areas (LNF) to industrial use for land- based aquaculture.
An application is submitted to Nordland County Municipality for the
establishment of a land-based aquaculture facility with a capacity of
13,731 MAB or 20,000 tonnes of salmon.
2019
Release of 3.3 million smolt in Q3.
2026
The Norwegian Food Safety Authority (Mattilsynet) grants
permission for a production of 20,000 tonnes of salmon, with 13,731
MAB. For the first 24 months, the permission is limited to 3,600 MAB.
2020
Full production of 16,000 tonnes (HOG).
2028
Biological update
- The facility is functioning well and as intended. Seawater is being pumped in as planned and the water chemistry is good.
- The fish are doing well in the longitudinal tanks, which are now operating with a water velocity of about 20 cm/s.
- We are gaining valuable experience for future production.
- Biomass 15.04.24: Average weight 151 grams. Net biomass approx. 24.5 tonnes WFE.
Updated project summary Rødøy
- Gigante Salmon is constructing a land-based salmon farming site on Lille Indre Rosøy which has a yearly production capacity of up to 16.000 tonnes HOG, based on a licensed MAB of 13,731 tonnes.
- Construction in two phases: Phase 1 covers a grow-out basin where smolt grows from 100 grams to 1 kg in 11 months. Phase 2 covers 2 production basins where salmon grows from 1 kg to harvest (4-7 kg). Phase 1 is completed Q1 2024 with subsequent smolt transfer.
- The design is basin walls/floor in concrete with liner, and water outlet in concrete channels. Extra area established by filling in sea. Increased automation and redundancy. High inflation on especially power supply/ distribution. Cost estimate for completion of production facility in Rødøy updated in March 2024. Total investment amount to approx. 995 MNOK.
- Financing round in Q2 2024 will cover capital needs to complete construction and working capital up to full production.
UPDATED PROGRESS PLAN
Contruction of | Construction second | Entire production |
first basin | basin complete | plant completed |
complete | ||
Q1, 2024 | Q2, 2024 | Q4, 2024 |
1. gen. | 2. gen. | |
smolt | smolt | |
released | released |
THE PROJECT ECONOMICS REMAIN
STRONG AND HIGHLY COMPETITIVE:
PRODUCTION COSTS1 | CAPEX | |
NOK/kg HOG | NOK/kg HOG | |
188 | ||
64 | ||
44 |
62
Phase 1 | Full production | Phase 1 | Full production |
1. generation harvest | 3. gen. smolt released, | |
complete | full production | |
Q2, 2025 | Q3, 2025 | Q4, 2025 |
1. gen. | 2. gen. harvest | |
harvest | starts | |
starts |
The date for completion of construction and testing is pushed from originally August 2023 to January 2024. Expected time to first harvest Q2 2025.
- Includes financials costs
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Gigante Salmon AS published this content on 23 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 April 2024 05:33:07 UTC.