Gigante Salmon (GIGA) Q2 2024 earnings summary

Executive summary

• Appointed Kjell Lorentsen as CEO in April and added a deputy CEO post-period; new board elected in May.

• No sales revenue in Q2 2024 as first harvest is expected in Q2 2025; focus remains on project development and operational ramp-up.

• Significant progress on construction of production basins, with basin 2 completed and basin 1 infrastructure underway.

• Facility operating as intended, with healthy fish and positive biological indicators; average biomass doubled from June to August.

• 160,852 fish in facility at end of Q2, average weight 417.83g; fish health and growth satisfactory.

Financial highlights

• Group Q2 2024 net loss of NOK 1,245k, compared to a net profit of NOK 23k in Q2 2023.

• Operating loss of NOK -1.067m in Q2 2024, compared to NOK -0.842m in Q2 2023.

• Total operating expenses increased to NOK 1,067k in Q2 2024 from NOK 870k in Q2 2023.

• Group liquid assets at NOK 152.077m as of June 30, 2024.

• Equity ratio at 70%, with approx. NOK 700 million in equity.

Outlook and guidance

• On track for first harvest in Q2 2025, with full production capacity of 16,000 tonnes HOG expected.

• No sales income expected until first harvest in Q2 2025; focus remains on construction and operational readiness.

• Financing rounds in Q2 2024 cover capital needs for construction completion and working capital to full production.

• Long-term debt proportion expected to rise as construction loans are drawn during the establishment period.