Gigante Salmon Q1 2025 presentation: First harvest initiated as construction progresses

Introduction & Market Context

Gigante Salmon AS (OSE:GIGA) presented its first quarter 2025 results on May 6, revealing progress in its transition from construction to operational phase at its land-based salmon farming facility in Norway. The company’s shares closed at NOK 8.00 on May 5, representing a 6.67% increase ahead of the quarterly report, suggesting positive market sentiment.

The Norwegian aquaculture company is developing a hybrid land-based salmon farming site on Lille Indre Rosøy, utilizing technology that aims to combine the benefits of both land and sea farming. With full production estimated by 2026, Gigante Salmon is positioning itself as a cost-efficient player in the growing land-based aquaculture sector.

Quarterly Performance Highlights

Gigante Salmon reported several key achievements during the first quarter of 2025, most notably the completion of its second production basin and the continued growth of its standing biomass.

As shown in the following quarterly highlights:

The company reached a standing biomass of 1,070 tonnes by the end of Q1 2025, a significant milestone in its production ramp-up. Additionally, Gigante Salmon achieved GlobalGAP certification during the quarter, an important quality assurance designation for aquaculture operations.

After the balance date, the company initiated its first harvest, marking a crucial transition from pure construction to operational phase. Management also disclosed plans to establish a shareholder loan of up to NOK 50 million with its main shareholder, Gigante Havbruk AS, indicating additional financing needs as operations scale up.

Construction and Biological Updates

Gigante Salmon’s facility is being constructed in three phases, with each basin representing a significant milestone in the company’s development. The company provided a detailed site overview showing the progress of each basin:

Basin A has been in operation since Q1 2024, while Basin B was completed in Q1 2025 with testing currently in progress. Construction of Basin C continues with walls cast and partitions in the final phase, with completion expected by Q4 2025. Once fully operational, the facility will have a production capacity of up to 16,000 tonnes HOG (Head-On Gutted).

The biological performance of the salmon stock shows promising development, as illustrated in the following update:

The standing biomass reached 1,070 tonnes as of March 31, 2025, with detailed tracking of fish growth across different batches. The first batch from January 2024 has reached an average weight of 3,500 grams and is scheduled for harvest in Q2 2025, while the second batch from September 2024 continues to grow with harvest planned from Q4 2025 until Q2 2026.

The company has also initiated its first harvest, working with established industry partners:

The harvest process involves collaboration with North Salmon Service for well boat services, Salten N950 for the harvest operation, and sales through Polar Quality and FRAM 67°45’N SEAFOOD 15°13’0.

Financial Analysis

Gigante Salmon’s financial results reflect its current project execution phase, with limited income and operating expenses as the company continues to build out its production capacity.

The income statement shows the company’s current financial performance:

The net loss for Q1 2025 was NOK 0.9 million, which management noted is in line with expectations given the company’s development stage. As production ramps up with the initiation of harvesting, revenue generation is expected to begin in the coming quarters.

The balance sheet provides insight into the company’s financial position:

The company’s assets include significant investments in fixed assets for the production facility, as well as growing biological assets represented by the fish inventory. The planned shareholder loan of up to NOK 50 million will provide additional liquidity as the company transitions to operational phase.

Forward-Looking Statements

Gigante Salmon highlighted several competitive advantages that it believes will drive future success. The company claims a lower CAPEX per kg compared to other land-based systems, with NOK/kg HOG between 200-250 for traditional Land-based RAS and Hybrid systems, while projecting less than NOK 70 for Gigante at full production.

The company’s strategic location provides optimal sea temperatures and access to aquaculture infrastructure while maintaining distance from other farming sites to reduce biological risks. With Basin C expected to be completed by Q4 2025, Gigante Salmon remains on track to reach full production capacity by 2026.

Management emphasized its commitment to health, security, environmental and quality standards, reporting no accidents with high potential risk during Q1 2025. This focus on operational excellence will be crucial as the company scales up production and begins regular harvesting operations in the coming quarters.

As Gigante Salmon transitions from construction to operational phase, investors will be watching closely for execution on harvest plans and the company’s ability to achieve projected cost efficiencies at scale.

Full presentation:

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