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.
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