Land-based salmon farming company Gigante Salmon has confirmed it is on course to start production at its first facility on Lille Indre Rosøy in Rødøy, Norway, this autumn.
“This project has been object for planning and execution through several years, and we are pleased to see that the effort is now taking shape. At this moment we are really looking forward to starting production this autumn, with 1,1 million smolt released in the facility” Gigante Salmon CFO Rune Johansen said.
Based on a flow-through system, there are a number of activities related to the project that must be completed before start-up, and in the coming period good planning, management and prioritisation of outstanding work will be crucial, the company advised in a filing with Euronext Growth (Oslo).
It said some activities must be completed sequentially, while others can be worked on concurrently. Most critical materials and equipment have been delivered and are either being assembled or installed at Lille Indre Rosøy or are being prefabricated and assembled at another location before delivery.
In its report for the second-quarter of 2023, the company stated that its total investment in the facility had increased to more than NOK 260 million – up from almost NOK 165.6 million in Q1 2023. The operating profit for Q2 was NOK -842 million.
Long-term bank financing for Gigante Salmon Rødøy´s development in the amount of NOK 204 million has been granted by Sparebank1 Nord-Norge. Eksfin -Export Finance Norway has issued a guarantee covering 50% of the loan amount.
As of 30 June 2023, the loan had been drawn down by just over NOK 147.6 million. After completion, the construction loan is convertible into a repayment loan.
As of 30 June, Gigante Salmon’s total liquid assets were NOK 155.3 million.
Gigante Salmon Rødøy AS has NOK 50 million on hand, set aside for working capital. In addition, an overdraft of NOK 90 million has been granted as working capital.
