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Atlantic Sapphire addresses incident causing US $3 million loss


Following an announced harvest of 250 tonnes for the second quarter of the year, as well as a biomass gain of 200 tonnes, Atlantic Sapphire’s facility in Hvide Sande, Denmark experienced an ‘incident’, which has resulted in a 400-tonne loss of salmon, and a US $3 million loss for the company.

The incident came just shortly after Atlantic Sapphire announced it’s harvest for the second quarter, which included a 300-tonne harvest at the company’s U.S. facility, as well as a biomass gain of 700-tonnes. Prior to the incident, the sales price achieved was US $11 and 38 kr (Danish kroner) per kilo, respectively.

Following the incident, updates showed that the operating profit has been totalled to US $0.8 million from the harvested fish, when initially, the investment bank had included predicted volumes of 1,000 tonnes during this period of the year for the Denmark facility.

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“While the financial impact is limited, the incident shows that there are still risks associated with land-based fish farming,” the update stated.

Atlantic Sapphire’s share price fell 11.2 per cent shortly after the stock exchange opened on Monday morning. It was last traded at NOK 78 (Norwegian krone), its lowest level since Christmas 2018.

The saltwater grow-out systems effected in the Denmark facility contained the largest fish onsite, which were anticipated to be harvested in the second half of 2021.

“The company’s preliminary analysis, which remains subject to change, indicates that maintenance work performed in the filtration system caused water quality to quickly deteriorate, resulting in elevated mortality,” stated an Atlantic Sapphire stock exchange release. “Human error altered the water levels in the recirculating aquaculture system (RAS) and allowed previously stagnant water to flow into the tanks. To minimize the risk of a similar incident reoccurring, Atlantic Sapphire has updated certain operating procedures and such changes will take effect immediately.”