TORONTO, April 4, 2016 /CNW/ - Ceres Global Ag Corp. (TSX:
CRP) ("Ceres" or the "Corporation") today announced that it will
put three grain storage elevators located in Buffalo (Lakeport), New
York, Minneapolis
(Calumet) and Duluth (Lakeport), Minnesota out of service as part of a
strategic initiative designed to reduce operating costs and better
align operations with the company's long-term plans and focus.
The grain elevator closures will take effect with the start
of 2016 crop season in July. Ceres expects that the closures
will result in an annual reduction of operating expenses of
US$2 to $2.5 million. Ceres'
Duluth storage facility, which has
a capacity of 12.2 million bushels, will remain open and be the
primary focus of operations in the area.
"The agricultural commodity trading and merchandizing
environment requires that we operate the terminal assets in our
network as efficiently and cost effectively as possible," said Mr.
Patrick Bracken, CEO of Ceres Global
Ag. "By rationalizing our operations and closing our three least
profitable grain elevators, we expect to improve our financial
performance. The affected elevators have been in operation for a
number of years, giving us the flexibility to re-open them once
market conditions improve."
Ceres also announced that it expects its Northgate terminal to
be fully commissioned by April 30 as
scheduled. Northgate is 1,200 acre multi-modal,
multi-commodity terminal located on the Canada/U.S. border in southeast Saskatchewan. Northgate is designed to provide
transloading, handling and storage capabilities for assorted
agricultural products as well as crude oil, liquefied petroleum
gas, fertilizers and other commodities from one location.
Ceres has established strategic agreements with Koch
Fertilizer, Elbow River Marketing and BNSF Railway as part of its
strategy of building Northgate as a world-class logistics hub.
About Ceres Global Ag Corp.
(ceresglobalagcorp.com)
Headquartered in Minneapolis, Ceres Global Ag Corp. is focused
on two primary businesses: a Grain Storage, Handling and
Merchandising unit; and a Commodity Logistics unit.
Ceres' Grain Storage unit is a collection of nine grain storage
and handling assets in Minnesota,
New York, Saskatchewan and Ontario having aggregate storage capacity of
approximately 43 million bushels as at December 31, 2015.
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 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.
Cautionary Notice: This news release contains
"forward-looking information" within the meaning of applicable
Canadian securities legislation and United States securities laws. Forward-looking
information may include, but is not limited
to, statements regarding future operations and results,
anticipated business prospects and financial performance of Ceres
and its subsidiaries, including the plans, costs, timing and
capital for the development of the Northgate Commodities Logistics
Centre, expectations or projections about the future, strategies
and goals for growth, expected and future cash flows, costs,
planned capital expenditures, regulatory change, general economic
political and market conditions anticipated capital projects,
construction and completion dates, operating and financial results,
critical accounting estimates, the expected financial and
operational consequences of future commitments. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate",
"believes", "may have implications" or variations of such words and
phrases or statements that certain actions, events or results
"may", "could", "would", "might", or "will be taken", "occur", or
"be achieved". Forward-looking information is based on the opinions
and estimates of management at the date the information is made,
and is based on a number of assumptions and subject to a variety of
risks and uncertainties and other factors that could cause actual
events or results to differ materially from those projected in the
forward-looking information. Key assumptions
upon which such forward-looking information is based are
listed in the "Forward-Looking Information" section of the interim
MD&A for the year and quarter ended March 31, 2015. Many such
assumptions are based on factors and events that are not within
the control of Ceres and there is no assurance they will prove to
be correct. Factors that could cause actual results to vary
materially from results anticipated by such forward-looking
information include, among others, risks related to weather,
politics and governments, changes in environmental and other laws
and regulations, competitive factors in agricultural, food
processing and feed sectors, construction and completion of capital
projects, labour, equipment and material costs, access to capital
markets, interest and currency exchange rates, technological
developments, global and local economic conditions, the ability of
Ceres to successfully implement strategic initiatives and whether
such strategic initiatives will yield the expected benefits, the
ability of Ceres to successfully defend the claim by The Scoular
Company, the operating performance of the Corporation's assets, the
availability and price of commodities and regulatory environment,
processes and decisions. Although Ceres has attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
forward-looking information, there may be other factors that cause
actions, events or results that are not anticipated, estimated or
intended. There can be no assurance that forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Ceres undertakes no obligation to update
forward-looking information if circumstances or management's
estimates or opinions should change, except as required by
applicable securities laws. The reader is cautioned not to place
undue reliance on forward-looking information.
SOURCE Ceres Global Ag Corp.