Proximar Seafood AS Q2 and H1 2024 results: Pivotal months ahead - first sales agreement in place well ahead of first harvest in September

23 Aug 2024 07:00 CEST

Yokohama, Japan / Bergen, Norway 23 August 2024 – Proximar today reported its
second quarter and first half 2024 results. Stable and good growth conditions
and the first sales agreement with a high-quality customer in place marked the
quarter.

“Proximar is the first producer of Atlantic salmon in Japan, years ahead of the
competition. We have proven great production capabilities and fish growth, also
now commercially validated through the first sales agreement. We are ready to
start harvesting in about a month from now,” says Joachim Nielsen, CEO of
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.

Highlights of the second quarter of 2024:
• Continued growth in fish stock with a total biomass of 360 metric tonnes by
the end of Q2 2024 (vs 112 metric tonnes at the end of Q1 2024 and 530 tonnes by
mid-August).
• Stable and good biological conditions supporting healthy biomass development
with no significant incidents
• Increased operational activity in the post-smolt grow-out building, by the end
of Q2 six batches have been transferred into the two operating modules (seven by
mid-August)
• Commercial validation as the first sales agreement in place with quality
customer
• Preparing the organization for the first harvest in September, now totalling
45 employees
• Completion of the two last modules in the grow-out building in Q3 and Q4 2024,
~NOK 30m in extra CAPEX expected for some improvements and to secure
installation schedule. Expected to be financed through sale of convertible bonds
held by the company (up to NOK 40m)

Confirming price premium
The first sales agreement confirms Proximar's pricing expectations and the
significant cost advantage of local production in Japan. At the end of June,
Marubeni reached an agreement with a high-quality customer, specializing in
seafood.

“We see strong interest from high-end buyers, and we expect that the ongoing
sales dialogues will materialize in new contracts over the following months, as
we are the only company that can deliver fresh, domestic Atlantic salmon to
Japanese consumers,” Nielsen states.

Proximar’s brand and logo will be announced in September. Proximar experiences
high activity and strong interest for its Atlantic salmon, with a large number
of site visits and meetings with potential customers. The sales and marketing
activities focus on building brand awareness.

Targeting annual production of 5 300 tonnes
The targeted long-term harvest level for Proximar is 5,300 tonnes (HOG) per year
in Phase 1, with a gradual ramp-up from the first harvest. Expected harvest
volumes for 2024 and 2025 combined are ~4,700 tonnes (HOG), with the 2024 target
harvest volume expected at ~350 tonnes. From the first harvest, the production
will gradually ramp up toward full utilization expected in 2027.

“We are pleased to see the standing biomass increase at pace. Fish health and
safety remain our key priorities going forward. Our fish receives positive
feedback in terms of colour, fat, and taste, which is very encouraging as we are
now approaching the first harvest,” Nielsen continues.

Biological conditions have been stable with good fish health and growth largely
in line with expectations. There have been some issues with the turbidity of the
water (colour and clarity). This has no direct impact on the fish health or
performance. However, feeding has been temporarily reduced somewhat during
summer, and the company is currently installing an ozone treatment system as a
long-term mitigating measure.

Finalization of production equipment and financing
The two last modules in the grow-out building will be installed and completed in
Q3 and Q4 2024. This will enable the company to scale up farming activities
towards full production.

Most equipment is currently on-site or ready to be shipped, and all equipment
installation works are expected to be completed within the end of the year.

Following minor modifications and improvements, including securing the
installation schedule, the company expects additional CAPEX of approx. NOK 30m
during the second half of the year. Proximar expects to finance the additional
CAPEX with sales of the company’s holdings of its convertible bond (up to NOK
40m).

In addition, Proximar is working with different financial institutions in Japan
to secure extra credit facility for working capital purposes to secure adequate
buffer going forward.


Proximar Seafood will host a webcast presenting the results for the second
quarter and first half of 2024, today at 09:00 CEST. The investor presentation
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 at
https://events.webcast.no/proximar/2024/proximar-q2-2024

For further information, please contact: Ole Chr. Willumsen, CFO, +47 48 21 34
29 ocw@proximar.com

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 its first
harvest in September 2024. Through land-based salmon farming, using high-quality
groundwater 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.

This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act. The information was published on
August 23 at 07:00 by Ole Christian Willumsen, CFO.

More information:
Access the news on Oslo Bors NewsWeb site

626042_Proximar Q2 and H1 2024 presentation.pdf