Feronia Inc. Reports Q1 2013 Results

Feronia Inc. Reports Q1 2013 Results 
TORONTO, ONTARIO -- (Marketwired) -- 05/30/13 -- Feronia Inc.
("Feronia" or the "Company") (TSX VENTURE:FRN) today released its
unaudited financial results for the quarter ended March 31, 2013. All
amounts in this release are expressed in US dollars unless otherwise
indicated. 
Q1 2013 Highlights and Developments 


 
--  Revenue of $1.2 million (Q1 2012: $1.9 million) from the sale of 1,517
    tonnes of Crude Palm Oil ("CPO") (Q1 2012: 1,920 tonnes) at an average
    net price of $674 per tonne (Q1 2012: $875 per tonne) 
--  Replanted 442 hectares ("ha") of oil palm (Q1 2012: 264 ha) 
--  Produced 1,764 tonnes of CPO (Q1 2012: 2,009) from 9,550 tonnes of fruit
    (Q1 2012: 10,975 tonnes) 
--  Increase in oil extraction rate ("OER") to 18.47% (Q1 2012: 18.31%) 
--  Fresh fruit bunch ("FFB") yield of 1.60 tonnes per ha (Q1 2012: 1.74
    tonnes per ha) 
--  Average CPO Free Fatty Acid ("FFA") content of 2.17% (Q1 2012: 2.3%) 
--  Construction of Yaligimba CPO mill progressing with testing underway.
    First CPO production expected by the end of June 2013 
--  1,785 km of operational roads (Q1 2012: 1,680 km) 
--  First sales of rice grown by the Company made in Q1 2013 to local
    customers 
--  Net loss attributable to Feronia was $(2.6m) or $(0.01) per share,
    compared to a loss of $(2.4m) or $(0.02) per share in Q1 2012 
--  Completed non-brokered private placement led by strategic investor
    African Agriculture Fund for aggregate gross proceeds of Cdn$14.5
    million, including approximately Cdn$2.4 million from existing
    qualifying shareholders of the Company. 

 
Subsequent Events  


 
--  1,757 ha of oil palm had been replanted in the year to date as at May
    22, 2013 
--  Rice planted in October 2012 and harvested in April 2013 demonstrated
    commercial yields 
--  Q1 2013 production shortfall recovered since quarter end 
--  Appointment of new Managing Director of Palm Oil division 

 
Bill Dry, CEO of Feronia Inc. commented: "Whilst the low volumes of
CPO we currently produce and soft global CPO pricing continue to have
an impact on Feronia in the short term, the future value of the
Company will come from its new plantings. The addition of the African
Agriculture Fund as a significant investor in Feronia is a major
endorsement of our long-term vision from one of the continent's most
sophisticated investors who are an active supporter of management's
efforts to achieve our business objectives and create value for
shareholders." 
About Feronia Inc. 


 
--  Feronia operates large-scale commercial oil palm plantations and has
    commenced an arable farming operation in the Democratic Republic of the
    Congo (the "DRC"). 
    
--  The Company, through its subsidiaries, holds concessions on land which
    is owned by the DRC government and on which its oil palm plantation and
    farming operations take place. 
    
--  The Company uses modern agricultural practices to operate and develop
    its oil palm plantations and arable farming. Feronia believes in the
    immense agricultural potential of the DRC for high-quality edible oils,
    oil derivatives and foodstuffs given the suitability of its climate and
    soil and the availability of a skilled workforce. 
    
--  The Company's management team is comprised of experienced business
    administrators and senior agriculturalists with extensive experience in
    managing both plantations and large-scale mechanized farming operations
    in emerging markets. 
    
--  Feronia is committed to sustainable agriculture, environmental
    protection and providing jobs and economic growth for local communities.
    
--  For more information please see www.feronia.com. 

 
Operational Summary and Key Metrics by Division 
Palm Oil Operations 
The following table shows key data relating to operations at
Plantations et Huileries du Congo ("PHC") as at and for the three
months ending March 31, 2013: 


 
                                                             Total          
                      Three months ended Mar. 31,  (as at and for the three 
                                  2013                      months          
                                                        ended Mar. 31)      
                                                                            
                       Lokutu Yaligimba(1) Boteka  2013(1)    2012(1)   2011
                      --------------------------- --------------------------
Production                                                                  
Fruit Production                                                            
 (tonnes)               7,618            -  1,932 9,550(1)  10,975(1) 11,952
Oil Produced (tonnes)   1,392            -    372 1,764(1)   2,009(1)  2,064
Oil Extraction Rate                                                         
 (%)                    18.27            -  19.25 18.47(1)   18.31(1)  17.27
PKO Produced                                                                
 (tonnes)(2)               92            -      -       92        143      -
FFB yield/hectare        1.72            -   1.26     1.60       1.74   0.94
FFB yield/hectare                                                           
 (like-for-like)(3)      1.72            -   1.26     1.60       1.74   1.34
Average FFA (%)(4)       2.32            -   1.62     2.17       2.30   2.28

 
Notes: 


 
1.  Yaligimba did not contribute to Fresh Fruit Bunches ("FFB") or Crude
    Palm Oil ("CPO") production in either Q1 2013 or Q1 2012. 
2.  "PKO" means Palm Kernel Oil. 
3.  FFB Yield/Ha basis excludes Yaligimba production for 2011. 
4.  "FFA" means Free Fatty Acid. 

 
The following tables show key data relating to PHC's assets and
infrastructure as at March 31, 2013. 


 
                        As at March 31, 2013        Total as at March 31    
                     Lokutu Yaligimba(1) Boteka  2013(1)   2012(1)      2011
                    --------------------------- ----------------------------
Plantations                                                                 
 (Hectares)                                                                 
Immature                                                                    
  Year 0                100          256     66      422       264       165
  Year 1              1,707        1,447    770    3,924     2,110     1,027
  Year 2              1,065          545    500    2,110     1,027       713
  Year 3                402          320    305    1,027       713     1,328
                    --------------------------- ----------------------------
                      3,274        2,568  1,641    7,483     4,114     3,233
Producing                                                                   
  4 - 7 Years         1,136        1,275    738    3,149     2,469     1,026
  8 - 18 Years          376          561    578    1,515     2,273     3,552
  19 - 25 Years       2,908        1,921    216    5,045     5,471     5,008
  Over 25 Years           -            -      -        -         -     3,167
                    --------------------------- ----------------------------
                      4,420        3,757  1,532 9,709(2) 10,213(2) 12,753(2)
                                                                            
                    --------------------------- ----------------------------
Total Planted         7,694        6,325  3,173   17,192    14,327    15,986

 
Notes: 


 
1.  Yaligimba did not contribute to FFB or CPO production in either Q1 2013
    or Q1 2012. 
2.  During the years ended December 31, 2010 and 2011, the Company
    classified palms aged 4 to 30 years as mature and producing. Going
    forward, management has elected to classify palms aged 4 to 25 years as
    mature and producing, resulting in a reduction in the number of
    producing hectares. In the normal course, management expects to replant
    palms at age 25 and believes this new classification criteria
    facilitates comparisons to other plantation operations. 
 
                        As at March 31, 2013         Total as at March 31   
                                                                            
                     Lokutu  Yaligimba(1)  Boteka    2013(1) 2012(1)    2011
                   ------------------------------ --------------------------
Palm Nurseries                                                              
  Total Hectares         27            20       6         53      40      25
  Seedlings         474,754       452,500 144,675  1,071,929 753,698 400,428
  Hectares                                                                  
   plantable from                                                           
   seedlings          2,373         2,262     723      5,358   3,768   2,002
                                                                            
Palm Oil Mills                                                              
No. of Palm Oil                                                             
 Mills / Oil        1 / CPO         Under                                   
 Produced             & PKO  Construction 1 / CPO          2       2       2
Palm Oil Mill                                                               
 Capacity                           Under                                   
 (tonnes/hour)           15  Construction      10         25      25      25
                                                                            
                                                                            
                        As at March 31, 2013         Total as at March 31   
                                                                            
                     Lokutu  Yaligimba(1)  Boteka    2013(1) 2012(1)    2011
                   ------------------------------ --------------------------
Infrastructure                                                              
Operational Roads                                                           
 (Km)                   621           815     349      1,785   1,680   1,569
Employees                 -             -       -      3,564   3,662   3,812
Houses                1,988         1,226     630      3,844   3,856   3,855
Schools                  60            30      13        103      98      96
Hospitals                 2             1       1          4       4       4
Dispensaries              7             3       4         14      14      14
Health Centres            2             1       1          4       4       4

 
The Company also owns the Yaligimba Research Station, one of Africa's
pre-eminent oil palm seed research and breeding operations. The
Yaligimba Research Station supplies PHC with all of the oil palm
seeds required for its replanting programme and undertakes research
into increasing oil palm yields and optimal fertilizer regimes. The
seeds provided by the Yaligimba Research Station are resistant to
fusarium Wilt, a soil-born fungal disease that is prevalent in
Africa. The Yaligimba Research Station also sells both fusarium wilt
resistant and non-resistant seed varieties to third party customers.  
Recent developments in the oil palm operations  
As previously reported, harvesting at the Yaligimba plantation was
suspended at the beginning of Q1 2012 once the short-term strategy to
barge fruit from the Yaligimba plantation to the Lokutu plantation
was proven to be uneconomical and will recommence upon completion of
the Yaligimba palm oil mill. As a result, Yaligimba did not
contribute to Fresh Fruit Bunches ("FFB") or Crude Palm Oil ("CPO")
production in either Q1 2013 or Q1 2012.  
The total number of producing hectares (excluding Yaligimba) at March
31, 2013 was 5,952 ha (March 31, 2012: 6,310 ha). The year-on-year
reduction of 358 ha is a result of 651 ha of palms over 25 years old
being removed and 293 ha of young palms coming into production.  
The total tonnage of fruit production was 9,550 tonnes for the three
months ended March 31, 2013, 13% lower than the 10,975 tonnes
produced during the corresponding period in 2012. The lower level of
production is due to less density of fruit at the Lokutu plantation
resulting from a proportion of trees being in a male flowering phase
during Q1 2013. This phase, which arises periodically, has since
passed and the shortfall experienced in Q1 2013 has subsequently been
made up.  
Replanting of oil palms commenced in March 2013 in line with rainfall
patterns, with 442 ha planted by March 31, 2013 (Q1 2012: 264 ha)
representing the replanting of approximately 71,000 trees (Q1 2012:
approximately 42,000 trees). Year-to-date as at May 22, 2013 the
Company had replanted 1,757 ha representing the replanting of
approximately 281,000 trees. The size of Feronia's workforce has been
and will be a key factor in delivering on its objective to replant
5,000 ha representing approximately 800,000 trees this year.  
The oil produced by the Company is of a high quality with the average
Free Fatty Acid ("FFA") content of oil sold at 2.17% (Q1 2012: 2.3%). 
At March 31, 2013, the Company employed 3,564 staff in its palm oil
operations (March 31, 2012: 3,701), more than would typically be
required for a palm oil business with production at Feronia's current
levels. However, the Company recognises the considerable amount of
knowledge and skill held within its workforce and believes it is a
tremendous asset. While a large proportion of the workforce is
currently utilised in Feronia's replanting program, a sufficient
portion of the workforce has the skillset to be re-allocated to
harvesting operations as the Company's producing hectares increase.  
The Company also has in place a Management Training Programme to
develop management capabilities and skills across four areas -
agronomy, finance, technical (engineering) and personnel. The Company
believes this is essential to ensure the development of skills
through the organisation and is a key part of the Company's
succession planning. The two year programme is open to Congolese
nationals under 33 years of age with relevant qualifications and
experience with successful applicants required to pass a technical
examination and interview. Participants are also subject to ongoing
assessment. The 2013 programme, which starts in June 2013, has an
intake of 10 people.  
At Yaligimba, completion of the CPO mill by the Company's contractor
continues apace and testing of some modules is underway and the
charging of equipment with lubricants and hydraulic fluids has
commenced. The company expects the mill to produce its first CPO by
the end of June 2013. Once the new palm oil mill is operational, the
Company will have access to an additional 3,757 ha of producing
palms. The Yaligimba plantation is expected to achieve operating
results simil
ar to Lokutu on a per hectare basis.  
The Yaligimba palm oil mill will have an initial processing capacity
of 30 tonnes per hour of FFB, with the potential to increase to 60
tonnes per hour in a phase 2 expansion. The Yaligimba palm oil mill's
commissioning will mean that the Company will have installed
processing capacity of 55 tonnes per hour across its entire
operations; sufficient to process 230,000 tonnes of FFB per annum. It
is anticipated that under the current planting program and internal
forecasts for yield improvement, there will be no requirement for
additional processing capacity, other than the phase 2 expansion at
Yaligimba, until 2020.  
In April 2013, Benedict Rich joined the Company as Managing Director
of PHC. Mr. Rich has extensive experience managing plantation
operations in emerging markets and has also been responsible for
various aspects of research and development programs in both tea and
oil palm. He is ISO qualified and has a keen interest and
understanding of sustainability and the environment in the palm oil
industry, having helped develop the industry's environmental, social
and sustainability standards.  
Arable Farming Operations 
Key Metrics: 


 
Arable                       As at and for the three months ended Mar. 31   
                                                                            
                                               2013                     2012
----------------------------------------------------------------------------
Land Available (ha)                          10,000                   10,000
Land Cleared (ha)                             2,000                    2,000
Land Prepared (ha)                            1,700                    1,700
Land Planted (ha)                                90                      365

 
Recent developments in the arable farming operations 
In October 2012, the most recent trial planting of 500 ha of rice was
completed. The Company planted NERICA-4(R) (New Rice for Africa-4),
an upland rice variety suited to African soil and weather conditions.
Harvest of this crop commenced in mid-February 2013 with mechanized
harvesting supplemented through local casual labour.  
Results from the trial planting were positive with in-field yields of
around 4 tonnes of paddy rice per ha. Mechanized harvesting achieved
an average yield of 3.1 tonnes of paddy rice per ha over the first 46
ha harvested in February 2013 and 2.5 tonnes per ha from the
subsequent 77 ha harvested mechanically by the end of March 2013. The
harvest was completed in April 2013 and 685 tonnes of dry paddy rice
was harvested from 395 ha. Yield per ha declined as the harvest
progressed due to in-field losses caused by the protracted harvest
period and insufficient harvesting machinery to complete the harvest
in the optimum time period. The Company had ordered a second combine
harvester to support the harvest but, due to shipping delays
unrelated to the DRC, it did not arrive in time to participate in the
beginning of the harvest.  
As previously reported in April 2013, following quality tests and
qualifying as an approved supplier to Heineken N.V., the Company
commenced selling rice grown on its farm to Bralima, Heineken's
wholly-owned DRC subsidiary. Bralima has agreed to purchase 1,100
tonnes of rice during 2013.  
The Company also commenced selling rice into the local food market
through sales to Ets Kuku, a food wholesaler. The premium grade rice,
containing 5% or less broken grains, is being supplied on a weekly
basis in 25kg, Feronia-branded polypropylene sacks.  
Fulfillment of both contracts is expected to be made from existing
stocks of rice accumulated from the Company's trial plantings which
were harvested, dried and subsequently milled by the Company, and
from current and expected future harvests. The Company expects that
minimal capital expenditures will be required for fulfillment of said
contracts. 
The Company now has in place a pricing structure whereby the price it
charges for rice is determined by the quality of the product sold,
specifically, the percentage of broken grains. The prices that the
Company is achieving are consistent with earlier estimates and at a
significant premium to global rice prices. The Company anticipates
selling to additional counterparties over the course of time. 
Outlook 
The Company's strategy for its oil palm plantations business
continues to be to maximize returns from existing plantings while
investing in new plantings and the required processing capacity.
Commissioning of the new palm oil mill at Yaligimba is expected to
provide the Company with immediate access to an additional 3,757 ha
of mature oil palms for the production of CPO, an increase of 62.1%
from the area currently accessible. Once the Yaligimba palm oil mill
is completed, there are no major capital expenditures currently
anticipated in the Company's oil palm plantations business, excluding
costs associated with the Company's replanting program. 
The Company has made progress in establishing commercially viable
rice yields at its arable operation, has established a pricing
formula and is making sales to high quality local counterparties.
This furthers our confidence in the favorable dynamics of the local
rice market. The Company is currently evaluating how to prudently
expand its arable farming operation in light of these recent positive
developments. 
In summary, the key objectives of the Company in 2013 are as follows: 


 
i.   finish construction and commission the palm oil mill at the Yaligimba
     plantation, thereby enabling the Company to harvest and process fruit
     grown at that location; 
    
ii.  re-plant up to 5,000 ha across its oil palm plantations; and 
    
iii. prudently advance its arable farming operation. 

 
As previously disclosed by the Company, on December 24, 2011, the
government of the DRC promulgated a new law, "Loi Portant Principes
Fondamentaux Relatifs a L'Agriculture" (the "Agriculture Law"), for
the stated purposes of developing and modernizing the country's
agricultural sector. Feronia continues to seek clarification on the
implications of this legislation from local counsel and government in
the DRC. If the Agriculture Law is interpreted by the DRC government
to apply to the existing concession rights held by the Company and
the Agriculture Law is not amended, it could have a material and
substantial adverse effect on the value of its business and its share
price. In such case, Feronia may be required to sell or otherwise
dispose of a sufficient interest in its operating subsidiaries so as
to ensure that it meets local ownership requirements. There is no
assurance that such a sale or disposition would be completed at fair
market value or otherwise on acceptable terms to Feronia. Please
refer to the Company's Management Discussion and Analysis for the
three months ended March 31, 2013 available on www.sedar.com for a
full discussion on the Agriculture Law. 
Financial Discussion - Three m
onths ended March 31, 2013 


 
Revenue and Gross Margin                                                    
(Expressed in thousands of US                                               
 dollars)                                First quarter ended March 31,      
                                                                            
----------------------------------------------------------------------------
                                         2013      2012  $ Change % Change  
                                                                            
----------------------------------------------------------------------------
                                                                            
Palm Oil                                1,137     1,807      (670)     (37)%
Other                                      75       127       (52)     (41)%
                                                                            
----------------------------------------------------------------------------
Revenues                                1,212     1,934      (722)     (37)%
Cost of Sales                             984     1,279      (295)     (23)%
                                                                            
----------------------------------------------------------------------------
Gross Margin PHC                          228       655      (427)     (65)%
                                                                            
Gross Margin PHC %                         19%       34%                    
----------------------------------------------------------------------------
                                                                            
Arable operating expense                  431       967      (536)     (55)%
                                                                            
----------------------------------------------------------------------------

 
Gross margin is a non-GAAP financial measure. See "Non-GAAP Financial
Measures" below.  
The following table provides a summary of palm fruit production and
CPO: 


 
                                        Three months ended Mar. 31          
                                         2013           2012      % Change  
Fruit production (tonnes)               9,550         10,975           (13%)
Oil produced (tonnes)                   1,764          2,009         (12.2%)
Oil extraction rate                      18.5%          18.3%               

 
The reduced fruit and oil production during Q1 2013 is due to a lower
density of fruit at the Lokutu plantation during the quarter
resulting from trees being in a male flowering phase in Q1 2013. This
phase has since passed and the shortfall in FFB production has
subsequently been recovered. 


 
Selling, General and Administrative Costs                                   
                                                                            
(Expressed in thousands of US                                               
 dollars)                                First quarter ended March 31,      
                                                                            
----------------------------------------------------------------------------
                                          2013     2012  $ Change % Change  
                                                                            
----------------------------------------------------------------------------
Selling, general and admin               2,410    2,751      (341)     (12)%
Other (gains) and losses                    13      (16)       29     (181)%
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Operating costs                          2,427    2,735      (308)     (11)%
----------------------------------------------------------------------------
----------------------------------------------------------------------------

 
Selling, general and administrative costs for Q1 2013 were $341,000
lower than in Q1 2012 due to: 


 
--  Professional fees in Q1 2013 were $241,000 lower than in Q1 2012,
    primarily due to audit and accounting fees of $250,000 incurred in Q1
    2012 which related to the restatement of certain of the Company's
    interim financial statements for the year ended December 31, 2011. 
--  Share based payments in Q1 2013 were $138,000 lower than in Q1 2012 due
    to the full vesting, during 2012, of options granted in 2010 and 2011. 
 
Cash used in operating activities                                           
                                                                            
(Expressed in thousands of US                                               
 dollars)                                First quarter ended March 31,      
                                                                            
----------------------------------------------------------------------------
                                          2013      2012  $ Change % Change 
                                                                            
----------------------------------------------------------------------------
Cash used in operating activities        4,229     1,414     2,815      199%
----------------------------------------------------------------------------
----------------------------------------------------------------------------

 
Cash used in operating activities in Q1 2013 was $4,229,000 compared
to $1,414,000 in Q1 2012.  
Cash Flows and Liquidity  
The cash balance at March 31, 2013 was $7,191,000, compared to
$1,260,000 as at December 31, 2012. The increase in cash balance of
$5,931,000 was a result of a net loss (excluding non-cash items) of
$2,438,000, capital expenditures of $2,858,000 and an increase in
working capital of $1,791,000 offset by the issue of shares for cash
of $13,018,000.  
For Q1 2013, working capital movements resulted in cash outflows of
$1,791,000 (cash inflows of $1,167,000 for the first quarter ended
March 31, 2012), driven by decreases in inventory of $414,000,
receivables of $49,000, prepaid expenses of $419,000 and an increase
in payables of $909,000.  
Investing activities resulted in cash outflows of $2,956,000 for
first quarter ended March 31, 2013 (cash outflows of $2,840,000 in
the first quarter ended March 31, 2012).  
Cash inflows from financing activities were $13,018,000 for the first
quarter ended March 31, 2013 (zero for the first quarter ended March
31, 2012). A further $1,375,000 relating to the same financing
activities was received by the Company in early April, 2013. 
Liquidity and Capital Resources  
As at March 31, 2013, the Company had cash totalling $7,191,000. The
Company intends to use these funds to meet funding requirements
associated with the growth and development of its business. This
includes the rehabilitation of roads and other infrastructure on oil
palm estates, new planting on oil palm estates, purchase of farm
machinery and equipment, purchase of grain storage and processing
plant, planting of crops, acquisition of IT hardware and software and
further development of business systems.  
The Company recorded net cash outflows in operations and investing
activities for the 2012 calendar year and it is possible that this
will continue for an additional few years as the Company continues to
make significant investments in equipment and infrastructure
activities necessary to commercialize its products. Feronia's actual
funding requirements will vary based on the factors noted above and
its relationships with lead customers and strategic partners.  
As part of the first tranche of a non-brokered private placement with
Golden Oil Holdings Limited completed on January 15, 2013, the
Company issued 42,028,000 Common Shares for aggregate gross proceeds
of CDN$5,043,360 ($5,116,007) at a purchase price of CDN$0.12 per
share. In the second tranche completed on March 21, 2013, the Company
issued 58,800,774 Common Shares to Golden Oil Holdings Limited for
aggregate gross proceeds of CDN$7,056,093 ($6,883,993) at a purchase
price of CDN$0.12 per share. Pursuant to the second tranche, the
Company also issued 20,281,455 common shares to certain other
qualifying shareholders of the Company for aggregate gross proceeds
of CDN$2,433,774 ($2,392,857).  
The proceeds are being used by the Company for working capital and
capital expenditure purposes.  
Continuing operations of Feronia are dependent upon its ability to
continue to raise adequate financing and to commence profitable
operations in the future. There can be no assurance that the Company
will be able to continue raising adequate financing or commence
profitable operations in the future. See "Risks and Uncertainties"
below.  
Major outstanding anticipated capital expenditure cash requirements
as at the dat
e of this MD&A relate to the construction and completion
of the new oil palm mill at Yaligimba (estimated to be $500,000),
with expected completion in Q2 2013.  
Non-GAAP Financial Measures  
Gross margin is not a financial measure recognized by IFRS and does
not have a standardized meaning prescribed by IFRS. The Company's
method of calculating gross margin may differ from other methods
used. Gross margin is presented in this MD&A as additional
information regarding the Company's financial performance. Gross
margin has been calculated by deducting cost of sales from revenue. 
Risks and Uncertainties  
The Company is subject to various business, financial and operational
risks that could materially adversely affect the Company's future
business, operations and financial condition and could cause such
future business, operations and financial condition to differ
materially from the forward-looking statements and information
contained in this MD&A. For a more comprehensive discussion of the
risks faced by the Company, please refer to the Company's annual
management's discussion and analysis for the year ended December 31,
2012, available at www.sedar.com. 
Cautionary Notes  
Except for statements of historical fact contained herein, the
information in this press release constitutes "forward-looking
information" within the meaning of Canadian securities law. Such
forward-looking information may be identified by words such as
"anticipates", "plans", "proposes", "estimates", "intends",
"expects", "believes", "may" and "will". There can be no assurance
that such statements will prove to be accurate; actual results and
future events could differ materially from such statements. Factors
that could cause actual results to differ materially include, among
others: risks related to foreign operations (including various
political, economic and other risks and uncertainties), the
interpretation and implementation of the Agriculture Law, termination
or non-renewal of concession rights or expropriation of property
rights, political instability and bureaucracy, limited operating
history, lack of profitability, lack of infrastructure in the DRC,
high inflation rates, limited availability of debt financing in the
DRC, fluctuations in currency exchange rates, competition from other
businesses, reliance on various factors (including local labour,
importation of machinery and other key items and business
relationships), the Company's reliance on one major customer, lower
productivity at the Company's plantations and arable farming
operations, risks related to the agricultural industry (including
adverse weather conditions, shifting weather patterns, and crop
failure due to infestations), a shift in commodity trends and
demands, vulnerability to fluctuations in the world market, the lack
of availability of qualified management personnel and stock market
volatility. Most of these factors are outside the control of the
Company. Investors are cautioned not to put undue reliance on
forward-looking information. Except as otherwise required by
applicable securities statutes or regulation, the Company expressly
disclaims any intent or obligation to update publicly forward-looking
information, whether as a result of new information, future events or
otherwise. 
Neither the TSX Venture Exchange nor its regulation services provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release. 
Contacts:
Feronia Inc.
Ravi Sood
Executive Chairman
(416) 907-2026
Ravi.Sood@feronia.com 
Feronia Inc.
Bill Dry
CEO
44 (0) 7887 525 046
Bill.Dry@feronia.com
www.feronia.com
 
 
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