Norwegian land-based salmon farmer Gigante Salmon has reported that its second smolt batch release at its Rødøy facility in the north of the country was struck by a “significant mortality” event during the fourth quarter of 2023.
Delivering its Q4 2023 report, the company confirmed production of 640,000 smolt averaging 100 grams in weight. While the first delivery of this product “went very well,” the second delivery suffered greatly from the accident, it stated in a new filing with Euronext Growth (Oslo).
Gigante Salmon said it will provide an update when the full scope of the mortality has been clarified.
Gigante's problems stem back to September 2023, when the company pushed back the start of production from its original release plans for that month and October.
In its latest filing, Gigante stated that in order to not affect further production plans for the facility to an overly large extent, it chose to deploy fewer smolt than originally planned last fall.
Gigante Salmon CEO Helge Albertsen said the focus is now to “ensure fish welfare in the best way while also gaining experience and securing good operations.”
The company has thus far released fish in one of its three production basins at Rødøy. It plans to stock the other two in 2024, with the next smolt release expected in Q3 2024.
As the company was still in a development phase, it made no sales in the fourth quarter of 2023. Its operating costs for the period totaled NOK 984,000 (USD 94,000, EUR 86,000) – down from just under NOK 1.2 million (USD 115,000, EUR 105,000) in the corresponding period of 2022.
Gigante Salmon's Q4 2023 investments increased to more than NOK 506 million (USD 48.3 million, EUR 44.4 million), compared with the NOK 385.3 million (USD 36.8 million, EUR 33.8 million) the company invested in Q3 2023.
Its most recent investments cover Phase 1 construction at Rødøy, covering a grow-out basin where smolt grows from 100 grams to one kilogram in 11 months. Investments are also being made in Phase 2, which covers two production basins where salmon will grow from 1 kilo to harvest size at 4 to 7 kilos.
Installation of the seawater-intake structure at Rødøy for Phase 1 of the development project was completed on schedule, and the installation of sea-side sieve boxes, risers, and pumps was also finished, it said. Gigante also confirmed the establishment of technical installations in Q4 2023.
At the same time, the company made organizational changes in advance of the start of operations and Phase 2 of development and carried out a private placement, subsequent offering, and a new leasing agreement that provided approximately NOK 306 million (USD 29.2 million, EUR 26.9 million) in additional financing. These funds will be used to cover increased capex, strengthen working capital, and establish a capital buffer. This financing round will cover capital needs to complete construction at Rødøy and level working capital up to full production, it said.
“It is with great satisfaction that we leave behind us a content-rich fourth-quarter. We have strengthened the company's financing, completed several installations, tested equipment, and started production,” Gigante Salmon CFO Rune Johansen said.
Upon completion, the Rødøy salmon-farming site will have a yearly production capacity of up to 16,000 metric tons (MT) head-on gutted (HOG) fish, based on a licensed maximum allowable biomass (MAB) of 13,731 MT.
Photo courtesy of jack perks/Shutterstock
