ANDFJORD SALMON: FISH THRIVING IN POOL | SECOND QUARTER AND HALF-YEAR 2022 FINANCIAL RESULTS

Andfjord Salmon: Fish thriving in pool | Second quarter and half-year 2022 financial results. This year’s second quarter was highly eventful for Andfjord Salmon, with first smolt release and significant strengthening of the company’s balance sheet as some of the highlights. Today, the fish is thriving in the pool and its survival rate currently stands at 99.4%.

“We are located at the home of the Atlantic salmon, and we have succeeded in recreating its natural habitat on land without any artificial water treatment processes. We are very pleased with the biological conditions in the pool, and we believe the high survival rate reflects this,” says Martin Rasmussen, CEO of Andfjord Salmon.

On 25 June 2022, Andfjord Salmon released approximately 200,000 smolt at an average weight of 120 grams in the company’s first land-based pool at Kvalnes, Andøya. The fish has a solid appetite and is growing according to plan, which confirms its wellbeing. As of today, 15 September, the average weight is 402 grams.

Andfjord Salmon targets first harvest mid-2023.

The first pool is only the beginning at Andfjord Salmon’s Kvalnes site. The next pools, which are the pools closest to the first pool, have been excavated during the second quarter. Further excavation work will continue in the coming months. Andfjord Salmon holds a license to produce 10,000 tonnes MAB salmon at Kvalnes, equivalent to a target production volume of 19,000 tonnes HOG.

BREIVIK SITE

Andfjord Salmon has also made solid progress on the business development front in the second quarter. In June, Andøy municipality council approved the zoning plan application from Andfjord Salmon for the development of a land-based fish farming facility at Breivik, Andøya.

At Breivik, Andfjord Salmon intends to develop and build a land-based fish farming facility, targeting a production volume of 25,000 tonnes HOG.

“Our primary focus is obviously on Kvalnes, but we will in parallel continue our work to secure the necessary permits to develop Breivik and Fiskenes,” says Martin Rasmussen.

STRENGTHENED FINANCIAL POSITION

During the second quarter, Andfjord Salmon strengthened its financial position significantly. In June Jerónimo Martins, a Portugal-based international food industry group agreed to invest NOK 173.9 million in Andfjord Salmon through a directed private placement. Andfjord Salmon also secured a NOK 50 million bank loan during the second quarter.

At the end of June 2022, Andfjord Salmon held cash and deposits of approximately NOK 191 million. This figure does not include a NOK 5 million remaining loan facility, a NOK 20 million undrawn credit facility, or NOK 5 million in unpaid grants.

Q2 2022 INTERIM FINANCIAL RESULTS

Andfjord Salmon is currently developing its first land-based salmon farming facility, which means that the company does not yet generate revenues. The company’s first operating revenues will be generated in 2023 following first harvest.

The company had an operating loss of NOK 8.4 million in this year’s second quarter, compared to a loss of NOK 6.9 million in the same quarter last year. The change is mainly related to ramp up of operations in preparation for release of first smolt.

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