TORONTO, Jan. 6, 2016 /CNW/ - Ceres Global Ag Corp.
("Ceres" or the "Company") (TSX: CRP) today announced that it
expects to incur a durum wheat loss of approximately CDN$11.7 million (US$8.9) with its third quarter results ended
December 31, 2015. The loss,
which is consistent with International Financial Reporting
Standards, is due to the negative impact that durum wheat price
declines had on the value of the Company's existing grain inventory
at quarter end. As a result of the durum wheat loss, the company
expects to incur a consolidated loss of CDN$13.5 to $15
million (US$10.3 to $11.5
million) in Q3. Ceres expects to report its full third
quarter results after market close on February 10, 2016.
"While we make every effort to monitor grain prices and mitigate
our risks through active hedging against futures prices, the amount
and speed at which durum wheat prices have declined is
unprecedented given the amount of new supply coming to market,"
said Patrick Bracken, President and
CEO of Ceres Global Ag Corp. "The loss is a material
development and its disclosure is consistent with our objective of
transparency. It's important to understand that the loss has no
reflection on the quality of inventory being stored."
Ceres provides grain origination, storage, handling and trading
services and currently has more than 42.1million bushels of
assorted grains, including oats, rye, and durum wheat at its eight
storage and handling facilities in Minnesota, New
York and Ontario.
About Ceres Global Ag Corp.
(ceresglobalagcorp.com)
Ceres Global Ag Corp. is a
Toronto-based company focused on
two primary businesses: a Grain Storage, Handling and Merchandising
unit; and a Commodity Logistics unit.
Ceres' Grain Storage unit is anchored by its 100% ownership of
Riverland Ag Corp., a collection of eight grain storage and
handling assets in Minnesota,
New York, and Ontario having aggregate storage capacity of
approximately 42.1 million bushels as at December 31, 2015. Riverland Ag also manages two
facilities in Wyoming on behalf of
its customer-owner.
Ceres' Commodity Logistics unit is focused on the development of
a Commodity Logistics Centre in Northgate, SK. The
Northgate Commodities Logistics Centre is a state-of-the-art grain,
agriculture services and oilfield supplies transloading site, which
is being developed in conjunction with Riverland Ag and several
potential energy company partners and connected to BNSF
Railway.
Ceres also has a 25% interest in Stewart Southern Railway Inc.,
a short-line railway with a range of 130 kilometres that operates
in South-eastern Saskatchewan.
SOURCE Ceres Global Ag Corp.