Land-based salmon producer Gigante Salmon is grappling with soaring costs.
The board of Gigante Salmon was informed today of a significant increase in the cost forecast for its development project in Rødøy, amounting to approximately NOK 350 million ($33 million).
Total construction costs for the Rødøy development, are now estimated to be around NOK 995 million ($93 million), according to a stock exchange update from the company on Tuesday.
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The cost increase will require new capital with work on this already initiated, according to the company.
Addressing the funding shortfall, Gigante Salmon wrote, “The plan is that the cost increase will be covered through a combination of equity and debt financing. In the private placement in October 2023, NOK 100 million ($10 million) more than the identified need at that time was raised.”
The surge in costs is primarily attributed to extended construction timelines, encompassing expenses for rigging and operations.
