Interim report for the period 1 January – 30 June 2023
Construction according to plan and start of production planned for early 2024
The Land and Environment Court in Umeå has granted permission for Cinis Fertilizer to construct and operate a plant for the production of environmentally friendly mineral fertilizer in Örnsköldsvik and Skellefteå respectively. Both decisions have now gained legal force. The company can thus use the previously signed loan agreement of SEK 300 million to partially finance its first facility. In Örnsköldsvik, construction and installation of process equipment is carried out according to plan. Recruitment for around thirty positions to run the facility has begun. The goal is to start the production of environmentally friendly potassium sulphate at the beginning of 2024 and at full production rate, the plant will deliver 100,000 tonnes of potassium sulphate per year.
April – June
- Net sales amounted to SEK 0.0 million (–)
- Operating profit/loss amounted to SEK -8.5 million (-7.7)
- Profit/loss after financial items amounted to SEK -8.5 million (-7.7)
- Earnings per share, before and after dilution, amounted to SEK -0.12 (-0.14)
- Cash flow from operating activities after changes in working capital amounted to SEK 19.7 million (-16.7)
January – June
- Net sales amounted to SEK 0.0 million (–)
- Operating profit/loss amounted to SEK -14.1 million (-12.3)
- Profit/loss after financial items amounted to SEK -13.2 million (-12.3)
- Earnings per share, before and after dilution, amounted to SEK -0.18 (-0.22)
- Cash flow from operating activities after changes in working capital amounted to SEK 19.6 million (-21.5)
Significant events during the quarter
- The Land and Environment Court granted Cinis Fertilizer a permit according to the Environmental Code for the construction and operation of the company’s production facilities in Örnsköldsvik and Skellefteå
- The general meeting elected Anna-Maria Tuominen-Reini as a new board member
- Roger Svensk was appointed Chief Operating Officer (COO) and will take office in December 2023 at the latest
- Cinis Fertilizer signed a long-term agreement with BASF regarding supplies of the input product sodium sulphate to the company’s first facilities
Significant events after the quarter
- Notice to attend an extraordinary general meeting on 30 August 2023 to resolve on proposed incentive programmes
- Fredrik Eide appointed Chief Commercial Officer
CEO's comment
Important and inspiring milestones reached - focus now on preparing for the start of production
Establishing a company is an intensive operation. Much of the work involves telling and conveying a vision to people who will participate and contribute with their investment in the form of capital, knowledge and/or time. I am happy to have so many talented and committed colleagues in Cinis Fertilizer and with all partners and financiers who see and understand what we can create together. Cooperation, trust and confidence are necessary foundations for every successful project. I would also like to thank the public actors, municipalities and authorities who contribute to ensuring that we have legally secure and transparent permit processes. However, such processes can be perceived as time-consuming and drawn-out, but I am convinced that they contribute to ensuring good quality of the ventures that get their permits granted.
With binding environmental permits to construct and operate our first two facilities, in combination with long-term agreements with various suppliers for deliveries of our input sodium sulphate, we have important parts in place. This and the fact that our first facility is now clearly taking shape in Örnsköldsvik is confirmation that our ideas and plans are about to come to fruition.
Cinis Fertilizer is well on its way to becoming part of the circular economy and with the help of fossil-free energy we will produce mineral fertilizer with the industry’s lowest carbon footprint. Many actors are acknowledging Cinis Fertilizer as an important part of the green transition that is now taking place in the agricultural sector in several countries. We are in contact with leading actors and stakeholders, also outside Europe, who give us inspiration and propositions on how we can develop our business. I see very good opportunities to create additional value for us who are shareholders in Cinis Fertilizer.
Second quarter 2023
During the second quarter, construction in Örnsköldsvik has come quite a bit above ground. The concrete slab has been laid, walls have been erected and installation of process equipment has begun. In the coming months we will publish videos and current information about the project. Feel free to follow the development via the “Current projects” page on our website.
During the third quarter, we will be able to draw on the SEK 300 million credit facility signed through Nordea and Svensk Exportkredit (Swedish Export Credit Corporation). This is made possible by the fact that we now have a binding environmental permit for the Örnsköldsvik facility.
Organisation ready for the next step
I am happy to be able to welcome Roger Svensk and Fredrik Eide as members of Cinis Fertilizer’s management team. Roger Svensk takes up a new position as operations manager with responsibility for establishing and running current and future’s production facilities. As Chief Commercial Officer, Fredrik Eide will focus on strengthening and developing the Group’s supplier and customer relations.
In the coming months, we will continue the recruitment for the Örnsköldsvik facility. During the spring, we received many notices of interest which we are currently following up, in parallel with those who applied via our new recruitment site, jobs.cinis-fertilizer.com. It is gratifying to see that there are many talented and committed candidates who see opportunities to contribute to our and their own development.
Agreements secure growth
Cinis Fertilizer must be an attractive employer and as part of that endeavour we have signed a collective agreement. Our workplaces must be characterized by people with different backgrounds and experiences coming together in cooperation and a desire to contribute to the necessary green transition.
Access to sodium sulphate is an important component in our business and in our circular business model. Therefore, it is gratifying that we get in touch and hold talks with several players in various industries who can deliver what for them is a residual product. An example is the agreement we signed with BASF at the end of June. The long-term agreement replaces the letter of intent we previously had with BASF regarding deliveries of sodium sulphate. The agreement with BASF complements the ones we have with other suppliers of important inputs needed to secure the volumes for the production of environmentally friendly mineral fertilizer from our first four production plants.
There is currently a great demand for environmentally friendly mineral fertilizers that can contribute to strengthening Sweden’s and Europe’s independence as well as reducing agriculture’s carbon footprint. Cinis Fertilizer and our partners are committed to secure a sustainable food supply for the planet’s growing population.
Jakob Liedberg, CEO
For full report, please see attached file below.
For more information, please contact:
Jakob Liedberg, CEO
jakob@cinis-fertilizer.com
+46 768 58 12 86
Anders Antonsson, Acting IR & Communications Manager
anders@cinis-fertilizer.com
+46 709 994 970
Henrik Andersson, CFO
henrik@cinis-fertilizer.com
+46 705 70 87 53
This information is such information that Cinis Fertilizer is obliged to make public pursuant to the EU’s Market Abuse Regulation. This report has been prepared with a Swedish and an English version. In the event of any discrepancies between the two, the Swedish version applies. This information was published, through the agency of the contact persons above, on 25 August 2023 at 08:00 a.m. CEST.
About Cinis Fertilizer
Cinis Fertilizer is a Swedish green tech company aiming to produce an environmentally friendly mineral fertilizer, potassium sulphate, by recycling industrial waste products from the car battery manufacturing industry as well as the pulp & paper industry. The patent protected technology will use half as much energy as today’s production methods and the result is a fossil-free fertilizer with a close to zero carbon footprint. Cinis Fertilizers mineral fertilizer is a unique and circular contribution enabling sustainable agriculture. FNCA Sweden AB is Certified Adviser. For more information, visit www.cinis-fertilizer.com.
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