Solid progress at Kvalnes build-out | Third quarter 2024 financial results

28 November 2024

Progress remains strong at Andfjord Salmon Group AS’ (Andfjord Salmon) build-out at Kvalnes, Andøya, Norway. All workstreams are on or ahead of schedule, and the waterways are close to completion.

A total of 4.4 kilometres of tunnel infrastructure is being developed at Kvalnes, including inlet waterway, tunnel infrastructure below each pool, and outlet waterway. Only 20 metres of the outlet waterway and approximately 450 metres of the inlet waterway are left to be completed.

Watch the video of the Q3 2024 presentation:

The waterways workstream also includes tunnel infrastructure below the excavated pool pits. The completed infrastructure includes eight vertical inlet shafts that will supply all the pools with fresh seawater, and six vertical outlet points – with adjacent pools sharing the same outlet. The horizontal sections from the pools to the outlet tunnel have also been completed. With so much work already finished, the number of machines and equipment being used for tunnel production has been scaled down.

The waterways workstream has reached 90 percent completion as of 27 November 2024.

“Although our key focus is now on the first four pools, it is worth reminding our shareholders that the inlet and outlet waterways, which are close to completion, are designed to support a future production of 40,000 tonnes of salmon at Kvalnes. Although this has required a sizeable upfront investment, it will make the subsequent build-out stages much less costly and with substantially lower risk,” says Martin Rasmussen, CEO of Andfjord Salmon.

In this stage of the Kvalnes build-out, Andfjord Salmon is completing four new pools, increasing total production capacity to 8,000 tonnes HOG by 2025, and developing a new harbour area.

The pool construction workstream is also progressing well. Columns, supports and preparations for wall elements have been completed for pool K1 and is in progress for K3. The workstream is currently at 51 percent completion.

The harbour area workstream has reached 61 percent completion, on schedule. Large boulders are currently being put in place as foundation for the breakwater that will protect the harbour against strong winds and waves. Excavated masses from the waterways and pool pit will later be utilized to complete the breakwater, as part of Andfjord Salmon’s mass balance approach for the build-out.

“I am very pleased with the progress we are making. The high level of activity in the pool pit is impressive, with notable progress being made every single day. I look forward to reporting on the progress we are making during the coming months,” adds Martin Rasmussen.

THIRD QUARTER 2024 FINANCIAL RESULTS

Andfjord Salmon is currently expanding its Kvalnes facility and had no salmon production and therefore close to zero revenue in this year’s third quarter (Q3 2023: NOK 27.7 million). The company reported a loss of NOK 15.3 million in this year’s third quarter, compared to a loss of NOK 28.3 million in the corresponding period last year.

PRESENTATION AT 08:00 (CET) TODAY

Andfjord Salmon’s Q3 2024 presentation will be held physically in Oslo and streamed live to online viewers.

The presentation in Oslo will take place at Haakon VIIs gate 2, Vika, Oslo (Auditorium H2)

The webcast presentation can be viewed at this link.

The presentation material is enclosed to this announcement.

DISCLOSURE REGULATION

This is information that Andfjord Salmon AS is obliged to make public pursuant to the EU Market Abuse Regulation (MAR) Article 17 no. 1. The information was submitted for publication, through the NTB Kommunikasjon service by the contact persons listed below.

CONTACTS‍

Bjarne Martinsen, CFO, +47 975 08 345, bjarne.martinsen@andfjord.no

Martin Rasmussen, CEO, +47 975 08 665, martin@andfjord.no‍

ABOUT ANDFJORD SALMON

Located at Andøya on the Arctic Archipelago of Vesterålen, Norway, Andfjord Salmon is developing the world’s most sustainable and fish-friendly aquaculture facility of its kind. Through a proprietary flow-through system, Andfjord Salmon combines the best from ocean and land-based salmon farming. In its first production cycle, the company achieved an industry-leading survival rate of 97.5 percent, feed conversion ratio of 1.05, superior share of 91.1 percent, and required 1 kWh to produce one kilo of salmon. Andfjord Salmon has identified a roadmap towards a production capacity of 40,000 tonnes HOG at Kvalnes, Andøya, and set a long-term ambition to reach 90,000 tonnes HOG across Kvalnes, Breivika and Fiskenes at Andøya.