Biomass Tripling and First Sales Agreement in Place
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Proximar Seafood AS is announcing its fourth production update following the successful initiation of production of Atlantic salmon in its Oyama-facility in Japan in October 2022. At the end of Q2 2024, the Company had a standing biomass of 360 metric tonnes, more than a tripling from the 112 metric tonnes at the end of Q1 2024.
“We are very pleased to see the positive development in our biomass continuing through the second quarter of 2024. The water quality remains good which again is reflected in our growth curves. We continue to see low natural mortality. Our first batch is above 3.25 kg on average, and we remain on track for first harvest in September. We continue to do sample testing for quality and taste, and both internal and external feedback is very positive”, says Joachim Nielsen, CEO of Proximar.
The Company has currently 15 batches and approximately 1.6 million individuals in production. The targeted long-term harvest level for Proximar is 5 300 tonnes (HOG) per year in Phase 1.
Furthermore, Proximar is pleased to inform that the first sales agreement has been reached, securing a fixed price per kilogram for a larger part of the harvested volumes for 2024. The price achievement is in line with our expectations and benchmark, also reflecting a price premium compared to the cost of imported Atlantic salmon from Norway. The sales agreement is expected to cover approximately one third of the expected harvesting volumes for 2024.
“We are very excited to conclude the commercial discussions on our first sales agreement, achieving a sales price according to our expectations for a significant part of our 2024 harvesting volume. This is a big milestone for us and demonstrates our business model and significant cost advantage. We are also very excited about the customer being a high-end chain with focus on seafood. This also represents a large value for us in terms of branding and marketing. We are very pleased with the efforts from Marubeni in the sales work, which is clearly demonstrated through the reached agreement” says Joachim Nielsen, CEO of Proximar.
In June, a sample fish of approx. 4.8 kg was provided to the customer for tasting and quality check, with very positive feedback. Marubeni is experiencing strong interest for the Proximar fish, and several other discussions are ongoing.
Download the production report here for further details. The next update will come as part of Proximar’s Q2 2024 report, which will be released on 23rd August 2024.
For more information, please contact:
Joachim Nielsen, CEO, +47 92 85 55 59, jn@proximar.com
Ole Chr. Willumsen, CFO, +47 48 21 34 29, ocw@proximar.com
