Fengro Industries Corp. Announces Fiscal 2017 Year End Financial Results
VANCOUVER, Jan 26 2018 - Fengro Industries Corp. (TSX-V:FGR) ("FENGRO" or "the Company") is pleased to announce its year end production, sales and financial results for fiscal 2017. The Company continues to make good progress in the development of new products, plant and extraction improvements and expansion of its market in Brazil. The Company increased sales to customers of its Direct Application Natural Fertilizer ("DANF") phosphate rock products and rationalization of its assets to focus on value-add projects for the Company and its shareholders. For the fiscal year ended September 30, 2017, DuSolo sold 42,294 tonnes of DANF product of varying grades (for the year ended September 30, 2016 - sold 30,450 tonnes of DANF).
Revenue for the fiscal year ended September 30, 2017 was $2,901,425 and gross profit for the same time period was $587,785. Net loss for the fiscal year ended September 30, 2017 was $4,073,325 (for the year ended September 30, 2016 - $4,071,748). This translates to a loss per common share (basic and diluted) of $0.16 for the fiscal year ended September 30, 2017 (for the year ended September 30, 2016 - $0.20 per share).
Chief Executive Officer, Giles Baynham noted that "The Company is now seeing the benefits of the efforts of management over the past two years. We completed our DANF Preliminary Economic Assessment (see release dated March 23, 2017), expanded our sales by 40% and continue to see growth in sales and deliveries in to 2018. We expect to complete agrononomic trials and product rergistration in mid-2018 and anticipate that this will increase the size of the potential market for DANF. In addition we will be using the expertise of our management team and board to aggressively pursue other accretive, value-adding opportunities in Brazil. I want to thank all those management and staff, consultants, advisors and our directors for their hard work and support through this period."
For more information, please refer to the management discussion and analysis and financial statements filed on SEDAR at www.sedar.com.
On behalf of Fengro Fertilizers Corp.
Giles Baynham, Chief Executive Officer and Director
For more information contact:
Email: info@fengro.com
+1 (604) 764 6126
FORWARD LOOKING STATEMENTS
Certain information contained in this press release constitutes "forward-looking information", within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "aims", "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "target", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur", "be achieved" or "has the potential to". Forward looking statements contained in this press release may include statements regarding the future operating or financial performance of Fengro which involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR at www.sedar.com. The forward-looking statements included in this press release are made as of the date of this press release and Fengro disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.
Disclosure - The Company's decision to produce DANF, its DANF production targets and cash flow projections were not based on a feasibility study of mineral reserves demonstrating economic and technical viability. Without a technical report demonstrating economic and technical viability, there is uncertainty as to whether the Company will be able to economically produce DANF in the long run and as to whether the Company will be confronted with any unforeseen technical impediments. The Company has now completed a preliminary economic assessment.
Disclosure - Note that the DANF PEA is preliminary in nature as it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability, and as such there is no certainty that the preliminary assessment and economics will be realized.
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