Gigante Salmon reports delays in the project
The aquaculture company reports in a Q4 update that the completion of production pool 2 is delayed.
Gigante Salmon AS is a land-based fish farmer building a flow-through facility comprising three excavated pools on the island of Lille Indre Rosøy in Rødøy municipality, Norway.
The company reported in the third quarter estimated investment costs per kilo of biomass of up to NOK 65, based on expected production of 16,000 tonnes.
In a stock exchange announcement, Gigante Salmon reported that due to a prolonged period of bad weather, the installation of surface cladding on the floor has not been possible, and the completion of production pool 2 is delayed. This has also somewhat affected the progress in production pool 1. Delays will normally lead to increased costs.
Costs within financing
The company is in the process of assessing progress and costs as a result of the delays. An updated cost estimate is not expected to be presented for the fourth quarter report, but cost accrual is expected to gradually decrease in the final phase of the pre-construction project in Rødøy.
The company's assessment of the total project costs is that they will increase somewhat from the estimate in the third quarter report, but remain within established financing.
Gigante Salmon has already completed one of its three pools - pool 3 - and has being growing fish in it to test the facility. As of August last year, the fish had reached an average weight of 1 kg.
Long term, Gigante plans to raise smolts to around 1 kg in basin 3, then grow them on to harvest size in basins 2 and 1.
