Japanese fish farmer Yuta Iijima holding one of the fish at Proximar's facility in Oyama. The company remains on track for its first harvest in September.
Photo: Proximar Seafood.
Proximar Seafood AS has released its financial results for the second quarter (Q2) and first half (H1) of 2024, highlighting significant progress as the company approaches its first harvest of salmon in Japan during September.
"Proximar is the first producer of Atlantic salmon in Japan, years ahead of the competition. We have proven great production capabilities and fish growth, also now commercially validated through the first sales agreement. We are ready to start harvesting in about a month from now," said CEO Joachim Nielsen in a Proximar Seafood press release.
Proximar reported a robust increase in fish biomass, reaching 360 metric tonnes by the end of Q2 2024, up from 112 metric tonnes at the end of Q1 2024. By mid-August, the biomass further grew to 530 tonnes, indicating strong and stable biological conditions that are supporting healthy growth.
"We are pleased to see the standing biomass increase at pace. Fish health and safety remain our key priorities going forward. Our fish receives positive feedback in terms of colour, fat, and taste, which is very encouraging as we are now approaching the first harvest," Nielsen said.
While the biological conditions have been stable, Proximar faced some issues with water turbidity, affecting feeding practices during the summer. To address this, the company is installing an ozone treatment system as a long-term solution.
The company has ramped up its operational activities, particularly in the post-smolt grow-out building. By the end of Q2, six batches had been transferred into the two operating modules, with an additional batch completed by mid-August.
In support of this growing activity, the company has also expanded its workforce to 45 employees, Proximar said.
The company confirmed a "major milestone" in the signing of its first sales agreement with a high-quality seafood customer. This agreement, reached in June, confirms Proximar's pricing expectations and underscores the cost advantages of local salmon production in Japan, the company indicated.
"We see strong interest from high-end buyers, and we expect that the ongoing sales dialogues will materialize in new contracts over the following months, as we are the only company that can deliver fresh, domestic Atlantic salmon to Japanese consumers," Nielsen stated, noting that the company is experiencing significant interest, with a large number of site visits and meetings with potential customers.
As Proximar prepares for its first harvest, the company's brand and logo will be officially launched in September, coinciding with an increase in sales and marketing activities aimed at building brand awareness and expanding its customer base in Japan.
Proximar anticipates additional capital expenditures (CAPEX) of approximately NOK 30 million (EUR 2.56 million / USD 2.75 million) for improvements and to maintain the installation schedule for the final modules in the grow-out building. These costs are expected to be financed through the sale of convertible bonds, potentially raising up to NOK 40 million (EUR 3.42 million / USD 3.66 million).
Proximar is on track to complete the installation of the final two modules in the grow-out building by the end of 2024. Most equipment is already on-site or ready for shipment, ensuring that the company can scale up to full production capacity.
In addition to the CAPEX financing through convertible bonds, Proximar is working with financial institutions in Japan to secure additional credit facilities for working capital, providing a financial buffer as the company moves forward.
Proximar is targeting an annual production of 5,300 tonnes of Atlantic salmon, with the first harvest expected to yield approximately 350 tonnes in 2024. Combined with 2025, the total expected harvest is around 4,700 tonnes. The company aims to ramp up production gradually, with full utilization expected by 2027.