Andfjord Salmon AS
OSE:ANDF
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
52 Week Range |
26.7
40.7
|
Price Target |
|
We'll email you a reminder when the closing price reaches NOK.
Choose the stock you wish to monitor with a price alert.
This alert will be permanently deleted.
Earnings Call Analysis
Q3-2023 Analysis
Andfjord Salmon AS
Andfjord Salmon's ambitious growth plans are evident, with a significant increase in production capacity slated for 2025. Although they have the flexibility for a smolt release in 2024, they choose to focus on construction for a stronger production ramp-up later. This strategy suggests a prioritization of longer-term gains over short-term outputs, which could be appealing for investors looking for sustained growth.
A key highlight of Andfjord Salmon's strategy is its patented laminar water flow technology, which replicates natural currents in a controlled environment. The company's technological expertise could open doors to global opportunities, yet the current focus remains on exploiting favorable local conditions at Andoya. Investors should note the potential for licensing or expanding this technology in the future, which could provide an additional revenue stream.
Financial planning is at the core of Andfjord Salmon's operations, with a phased investment approach hinted at for 2023 through 2025. Although specific budget splits have not been disclosed, the use of both equity and a construction loan to cover up to 50% of the investment demonstrates financial prudence. For investors, the approach to financing indicates careful risk management and a solid foundation for the ongoing expansion.
The company is actively exploring ways to improve their feed conversion ratio, aiming for operational efficiency and better sustainability. Minor adjustments and optimization efforts are underway, which, if successful, could enhance profitability and appeal to socially responsible investors.
Andfjord Salmon places high importance on fish health and has experienced early challenges such as mortality due to fish striking the walls. However, an innovative 'airbag solution' reduced the issue almost overnight. By addressing health risks and employing both internal and third-party expertise, the company has demonstrated its commitment to maintaining robust fish well-being — a crucial factor for sustained production success.
The company's largest undertaking — the construction of four new pools — poses risks commonly associated with large-scale projects, such as managing the interfaces between different construction phases. The executive team appears confident in their experienced contractors' abilities to navigate these challenges, suggesting project management risks are being actively mitigated.
Risks posed by environmental factors such as jellyfish, which have impacted ocean-based pens, seem to be minimized at Andfjord Salmon due to the protected inlet design and deep-water sources. This reduced exposure to environmental risks could be a distinct advantage compared to traditional salmon farming operations.
Welcome everyone to this quarter presentation from Andfjord Salmon. My name is Martin Rasmussen and I am the CEO of the company. The presentation today will be given in English and it's a combination of a physical presentation combined with a webcast solution. We will end this presentation with a Q&A so you can submit questions to us through the webcast solution. Together with me here today, we have our CFO, Bjarne Martinsen; and our Project Director, Jostein Nilssen. We will start the presentation by giving you and showing you our video from Andoya.[Presentation]Okay. The first topic on the agenda is the highlights from the third quarter. And after that, we will go through the operational numbers from the first production cycle and try to explain and to illustrate the economy effect, high survival rates and low feed conversion rate has on the economy. Jostein will give you an update on the buildout process on Kvalnes and Bjarne will cover the financial details. But first, for the benefit of new shareholders, I will start by giving a very brief introduction to Andfjord Salmon. Our mission is to serve salmon with a clear conscience, our fish farming with clear conscience. And the concept is the best from traditional salmon farming in the sea combined with the benefits of being land-based. We are located at Andoya where we have natural advantages, which means where we have access for seawater that hosts a perfect temperature for the Arctic-based salmon.It's oxygen rich and it holds a stable salinity level, which allow us to have very energy efficient production methods. We don't have problems with salmon lice because we are sourcing the water below the water depths where the salmon lice is living, the fish can't escape and we are in control of the organic waste. We have built all our pools below sea level and the reason for that is to avoid working against gravity because if you're lifting something up, you're using more muscles and more energy to move the water. We are just simply pushing the water through the pools and in the first pool, we use 5 tonnes with water every second. So it's enormous amount of water consumption, but we have proven with the first production cycle that we can have a very energy efficient production. And we have proven that we can produce 1 kilo of salmon within 1 kilowatt hour and convert to economy, it's around NOK 0.5 per kilo of produced salmon.It's not a coincidence that we are located at Andoya because Andoya is the land area in Norway that is definitely closest to the Gulf Stream. And the reason why we have the Gulf Stream here is because of the deep sea and the continental shelf. The Gulf Stream is following the continental shelf where you have over 1,000 meters depth. And as you see on the screen, Andoya is definitely closest to the Gulf Stream and this give us access for a temperated water during the coldest time of the year. And for example in our first production cycle, we had 1 to 3 degrees above the sea temperature that other salmon farmers in the area had because of the Gulf Stream. That gave us better growth. Higher temperatures increase your growth and also reduce the biological risk by having for example lower risk of impact of winter ulcer, which can be a problem in the coldest time of the year.So summary and the highlights from the third quarter. We completed our first production cycle with very strong operational performance results. And for example we have a survival rate from 2.5%, which is extremely good and the feed conversion rate of 1.05. So we are extremely proud of these numbers. At the end we are making food, we are producing a product and the feedback from the market is also part of our proof of concept. So we are extremely proud by the fantastic feedback we have had on our salmon in the market so far. And with us today, we have samples from the first production cycle. It's some frozen products. So if you're nice, you can take home your own box with you after the presentation. Since we slaughter the fish in June and July, this allow us to have very efficient startup of the construction of the next pools and this is the reason why we now are ahead of schedule of the pool pit excavation at Kvalnes.We have also started the construction of the Harbour area and the waterways, which is infrastructure for the entire Kvalnes area where we identified a production plan to produce 40,000 tonnes of salmon every year. Now we will look deeper into the details of how do low mortality and low feed conversion rate impact that economy. We did release approximately 200,000 of smolt in June 2022 and after 1 year of production, the survival rate was 97.5% or a mortality rate of 2.5%. So it's needless to say that we are very proud of this number. This prove that the concept is working very well on behalf of the biology. There is even room to improve these numbers. But good biology in combination with low feed conversion rate is the key to profitability. You don't get paid for a dead fish. A good reputation is extremely important in the market and a high superior share equal a high average price on your salmon.The feed is the largest input factor for a salmon producer. So this is why we want to highlight the importance of good biology and a low feed conversion rate. I will now illustrate the importance and the impact a good survival rate have on the impact on the revenue. If you have production of salmon and you slaughtered 5 kilo and you have a salmon price at NOK 80 per kilo, we have made 2 scenarios; one with 5 pool, one with 13 pools; to illustrate the economy benefit with a low mortality rate. At the scenario to the left with our numbers from the first production cycle where we have survival rate of 97.5%, we have increased sales revenue for over NOK 200 million in this scenario. So this illustrates the importance of having a fish alive instead of dead when you slaughter it. As I said, the feed is the largest input factor in salmon farming.And the reason why we can have a very low feed conversion rate is because we have a closed system where we have extremely good control and we can then use a special design feed where we have a low sinking rate on the feed. It's almost floating in the surface. If you do this in a traditional net pen, the feed will go out of the pen. So we used to say that this is a social democratic way of feeding salmon because there's always feed available for the salmon, it doesn't go away. But we can then have a very precisely production, we don't overfeed and we don't have feed waste. This is the reason why we can have 1.05. It means that you have 1.05 kilo feed for each kilo produced compared to the average in the industry where you have 1.27 kilo per kilo of salmon. And to simulate and to demonstrate the meaning and the impact if you're using the numbers from the first production cycle, this equals a cost benefit of around NOK 5 per kilo of produced salmon.Let us now look at the impact low mortality and the feed conversion rate has on the EBIT. As I said many times now, you don't get paid for a dead fish and you are using cost on a dead fish. You have paid for a smolt, you're using feed on the fish before it dies. So if you have a price on the feed of NOK 20 per kilo, you paid NOK 20 per salmon smolt and the price is NOK 80. And with numbers that we have achieved in the first production cycle compared to the industrial average, the EBIT impact is NOK 213 million in this scenario with 13 pools. So the reason why we are showing this is to demonstrate how important low feed conversion rates and good biology have on the economy. We will now give a status update on our construction and buildout of Kvalnes. But before I leave the word to Jostein, I will just short give you an introduction of the ramp-up of production capacity.First, we have a license for 10,000 tonnes MIB. This is what we are now in the construction phase of. Included infrastructure for the entire Kvalnes area, which I said; the tunnels, waterways, large proportion of the land area and the Harbour; is infrastructure that will give synergy effect for the entire area. But we are now in the first step with 5 pools in total, 4 new pools, we have a production capacity of 8,000 tonnes. In total 13 pools, we have production capacity of 19,000 tonnes HOG salmon per year with the existing license and then you have a bottleneck with the license. So which means that without any additional investments, you can increase the capacity up to 23,000 tonnes. And we are of course working to increase the license of Kvalnes, but we also have -- and we have the Kvalnes expansion, which is additional pools included the 13 pools that we are now in the pool pits excavation of.Okay. Then I leave the word over to you, Jostein.
Thank you for that, Martin. I will first of all just show you the Kvalnes area as we plan to have it when Phase 2 is completed. As you see, we have the pools very closely together to minimize the impact we have on the land. We build the pools in concrete and putting them back to back ensuring that the footprint at the facility when it comes to the pools are as small as possible. The technical areas, we have put them into hubs making sure that all the technical support functions are you don't have to put technical equipment against each of the 12 pools. So you rather put all the technical parts into hubs making sure that that's where you put your redundancy and those hubs are handling the biowaste, the feed, the oxygen and the dead fish handling. We now though doesn't have any dead fish, but dead fish handling is also a part of what you need to handle.So putting them together is a good part to optimize the synergies having all these pools so close together. The Harbour area, as you see 2 main reasons for the Harbour. We need to have a safe haven to optimize all logistics; bringing fish in and out of Kvalnes, receiving feed and getting rid of the biowaste. But in addition, the Harbour is important to have a mass balance for the project. So all the rocks that we take out from the pool pits and from the tunnels is put into the Harbour making sure we have that mass balance. In addition, the rocks on Kvalnes is very suitable to be used in concrete production. So we will also use the masses that we have on Kvalnes to produce concrete. We will set up a concrete factory at site and producing all the concrete we need for production during the buildout. All these infrastructure; so the Harbour, the waterways and the technical hubs; are dimensions to handle everything we would like to do at Kvalnes.So including these 12 pools and whatever additional pools we would like to build in Kvalnes, we have taken high for that all the infrastructure can cover that. This picture is maybe when you look at it, it's quite a distance from this picture to look at dimensions here at Kvalnes. I think it's a bit unfair because the dimensions are quite much more larger. As you saw on the films in the early stage of this presentation, the sizes we have at Kvalnes is rather enormous. This is the 1 pool pit that is supposed to cover 6 pools and you see that second one next to it. Quite a massive volume that you have available to push the fish in. This is a 40 tonne dumper and a 70-tonne excavator. So the dimensions of what we are doing at Kvalnes is rather enormous.As you will see in the progress plan that I will show you, we are very pleased with the progress on taking out these pool pits and also we have started now with the blasting in our production of our tunnels at Kvalnes. As you can see as well, this is the access tunnel for the inlet tunnel in Kvalnes. And with this size of the pools, of course you need to have enormous volumes of water flowing through them. And then concluding, this is the reason why we need to build tunnels and the size of the waterways that we need to be able to change out the water every hour in our pools. The same with the Harbour area. When you look at the picture on the right hand side, that is actually the small part that you see up in the picture on the left hand side. So the dimension of the Harbour area is quite massive as well. The rock mountain that you see next to the Harbour is there to be used as an add-on to the concrete production.And the reason for that is that the rocks that you have in the pool pits are more suitable for concrete production than rocks taken out from the tunnel production. This is true. We have the expertise, I would say the best in Norway, to handle whatever we do at Kvalnes. They are very good on all the parts of the production and the construction that we are planning now. And again the Harbour area, everything that we take out from the pool pits and from the tunnels will go out in the Harbour. This is the basis for what we now are planning at Kvalnes. This is the pilot pool. We know that the laminar flow through the pool is functioning very good for us and we will not change anything in the pool. That will be exactly the same because of what Martin just earlier mentioned now; low mortality, the feed factor and all of that. So no changes to that.When it comes to all the technical support functions, we will for sure continue to use them and further optimize how we would like that to be. The scale from 1 pool to 12 pool now is sort of the reason why we put the technical in hubs localizing them -- centralizing them instead of having everything at each pool. The conclusion then. Just to point out, you see the inlet tunnel at the bottom part of the picture because that is also part of how to do this construction. You need to have those tunnels available together with everything else that you do. So these are the access point, inlet tunnel and up in the south you have the access point for the outlet tunnel. And from there on, we have approximately 4 kilometers of tunnel that we will build and take out from Kvalnes. As you can see, the pool pits are ongoing as well and the Harbour area is continuously increasing as we take out the masses.Progress-wise, the plan was to have all the pool pits done during Q2 in 2024. We now see that we will be able to have that done during the first quarter in 2024. We have started the waterways and also with the Harbour, we are pleased with where we are out there. And for sure the next important part for us will be to plan and prepare the concrete production. That will be sort of the next big milestone for us and you need to plan for success. So making sure when you are ahead in 1 part of your production, you need to make sure that you cover that in the second part. That will be concrete production. So that is ongoing. And as we are moving on now, I'm very pleased with where we are at for sure. This is just indicating also how we are doing production-wise overall and from August until November as well.And with that, I will give the word to our CFO, Bjarne.
Thank you. I will give a brief summary of the financial result and the financial status. We do not have a formal financial report on the third quarter. We have a half year report and annual report. So on first quarter and third quarter, we give an overview like today. So first, a look at profit and loss statement. We have had our first revenues from sale of salmon this year. We started the harvest in June so when we reported the second quarter figures, we reported a revenue of just below NOK 10 million and the harvest was completed in July and we have NOK 27.7 million in revenues in third quarter and in total for the year, NOK 37.3 million. The value of the salmon that we have created during the production cycle was actually reflected in the second quarter figures as we value biomass assets at market value. So what happened in third quarter is basically only the sale itself.And for those of you who are especially interested, you can see this in cost of materials which includes biomass assets from the previous period plus some cost incurred in third quarter such as harvest, transportation and slaughter. You also see that we have cost to salary, depreciation and other operational costs at a stable level at a relatively approximately same level as previous periods. The company and the organization is set up to handle higher volumes than we can produce in 1 pool. So we are not profitable when we produce only in 1 pool. This will change when we have 4 new pools in operation in '25 and then we have 5 pools in operation and we will have a position to become profitable. But even if we don't have profit on 1 pool itself, we have some really important answers that Martin told about with the feed conversion rate at 1.05, survival rate and also energy consumption, which is important factor to become profitable.So what we need going forward is volume and we will have that from mid-'25. When you look at asset side, I guess the most interesting is to see the cash deposits of NOK 526 million. This is due to the capital increase that we completed during the summer. At this point at the end of September, the investment level went that high. This is also reflected in the balance sheet. You can see property, plant and equipment is increased by around NOK 45 million since end of last year. So this will increase going forward. What you also see from the assets here, we don't have any biological assets at the end of September, but we have a small inventory of NOK 2 million and that is the frozen salmon like the one you can get today when you leave here.Equity and liabilities: we now have equity above NOK 1 billion. And at this point when we haven't opened the construction loan yet, the equity share is very high and this will of course change when we start drawing on the construction loan. Otherwise you see here, we have some minor liabilities related to leasing agreements and we also have bank loans from SpareBank and Nord-Norge and Innovation Norway, which was done before the new construction loan that we will start drawing on later. The cash flow reflects the sales that we did in third quarter. We have a positive cash flow from operating activities with NOK 15 million in third quarter. You can also see here that what I said about the investment level, it was still quite low, relatively low until end of September and this will increase from October and forward. And you also see the effect of the second tranche of the capital increase here on cash flow from finance activities.And I have to say this also includes a repayment of the shareholder loan that we had on NOK 50 million. So this is reflected in the figures. And the cash flow from the period in total is of course positive with NOK 431 million. So our ambition is to develop Kvalnes to a capacity of 40,000 tonne production volume per year. We have identified 5 steps to get there and we're now in the first step. So what Jostein now showed is the first step of this plan and this will bring us to a capacity of 8,000 tonnes half yearly by building 4 new pools. But more important, this first step also includes investment in infrastructure that will support the entire site. So this first step includes port area for 40,000 tonnes, waterways for 40,000 tonnes, rock pits for 23,000 tonnes and 4 new concrete pools with technical infrastructure for a capacity of 8,000 tonnes.And with this infrastructure in place, the investment in the next steps will be relatively lower because we take infrastructure investments in this first step. For example in the second step, we just build new pools. Infrastructure will be built before. We're also really happy that we have strong partners in this buildout. We have had a contur for the port area, rock pits, concrete pools. And on the waterways, they also have with them LMS. We're very pleased that LMS has entered the project, local company from Andoya with really strong competence with internal production that brings value to the project. And together with also sea floor and the technical infrastructure, we have really strong partners. And at the end of September, the total investment in this step was at NOK 71 million up to date. And as I said, this will increase from October and forward. The budget for the buildout is NOK 1.3 billion and we also included a buffer of NOK 350 million.This this is how the Top 10 shareholder list looks. This changed a little bit after the capital increase that we did during the summer. We have strong and supportive shareholders. A lot of this took part in the capital increase including Jeronimo Martins, one of the biggest companies on the stock exchange in Lisbon, They are now the largest shareholder with 25%. Also Eidsfjord Sjofarm owned by the Holmoy Group from Eidsfjord. They both significantly increased their ownership share during the capital increase that we did during summer and showed their intention and we're really pleased to have such strong and supportive owners and also industrial owners.So with that, I give the word back to Martin for a summary.
Okay. Then we will just have a short summary before we go over to the Q&A. We have completed our first production cycle with very strong operational performance. We are ahead of schedule in the excavation of the pool pits and we can then start concrete work early in 2024. And we have started the work and have a very good momentum on the construction and production of the Harbour area and the work on the waterways for the entire Kvalnes development.So with that, we will go over to the Q&A session. It's possible to ask questions here from the audience and you can also submit the questions through the webcast solution. We have a microphone for those of you who want to ask a question here in this audience.
If you have questions, raise your hand please and speak into the microphone so the people on the webcast can hear you.
[Technical Difficulty] I have like 4 questions. If it's too much, just let me know. The first one is why don't you continue scaling up at Kvalnes? Why do you go to other locations? I mean for the point of [ calling up ] scale, if you just keep on how you put at the same place, why will you spread out?
We are doing both. So we are doing the work at Kvalnes as fast as possible. At the same time, we also have the momentum to develop the other sites, Fiskenes and Breivik. I think it's important to keep in mind that when you're working with developing the property and the improvements from the authorities, this is a process that takes several years. For example on both Fiskenes and Breivik, they used 5 years just to get the salmon plan approved. In Breivik, we have the approvements and on Fiskenes, we are now, I would say, in the process together with municipality to get the necessary permits. And thereafter, you can start a license process. So this is positive we will have continuous -- that is parallel with the construction of Kvalnes. I agree with your question, we are doing it.
The second question will be for the operational thing. Is there any risk when you're moving over from the test pool to the bigger pools? I guess they're like 4x bigger or something like that. Is there a risk that it will not give the same results as we saw in the test pool because the sizes are bigger?
No. Actually the sizes of the pools are not big. They are the same size and actually a bit more shallow than the original one. And that is really based on our experience from the first pool. And for sure we make the future pools now more robust going from composites as they were in the pilot pool, now building them into concrete is a big step to make them more robust. So I would rather say the opposite and we are very focused on making sure that how the water flows through the pools are exactly the same.
And maybe getting the summer with. But one thing I did not understand from your presentation, Martin, was that for 2024 you had 1,000 tonne expected and I don't understand that because the test pool's currently empty so I don't see how you can [indiscernible].
This demonstrates the existing production capacity. So it's not a guidance on the production volume. We're just illustrating the production capacity.
Yes, I understand. So you will have nothing to sell next year.
No.
Understand. My last question is your setup is amazingly cool I think. I mean the fact that it's working. So the last question is kind of double. How much of this is patented if patented? And in conjunction with that, are you looking into selling this solution elsewhere on the planet where you can get like licensing fees or whatever because your results are very strong and I'm sure you've thought about this, but I've not seen any updates on this in any of your financial information? So that was my last question.
First, what's patented is the laminar waterflow and the laminar waterflow is a parallel water current where actually it's a copy of this traditional net pen, but on land. So this is what we have patented and the technology behind it. It's simple, it's not complex; but the technology behind it, it's years of development to get the actual current that we wanted. And of course it's tempting to go over the world -- in different part of the world where you have the same temperature profile and you have -- but I think it's a combination of many factors that makes it very important for us to focus on Andoya at the moment. First, we are in a cluster of seafood producers. We have the knowledge, we have the competence, we have operator with 30 years of experience, we have the supplier, we have the feed factors. Everything is in place. So I think it's not a week without any -- I would say we get extremely many questions from different players that want to use our technology in other places in the world. So we have focus now and it's not that we're not looking into a global expansion. Let's say my main focus is develop what we already have started at Kvalnes and at Andoya.
Any further questions from the audience? If not, we'll take a couple from the webcast. [indiscernible] asked can you comment on the expected next smolt release? And I guess that's to you, Martin.
Yes. I would say the most important for us now is the construction and to have a significant increase in the production capacity in 2025. And as we said all the time, we will not do anything that will compromise on the terms of the good biology. We have the possibility and have the flexibility to release fish in 2024, but we see it more beneficial to have access for all the pools in the second half of 2025 because we can then have a much better ramp-up of the production volumes.
Question from Nils Thommesen. Is it possible to give a split on the investment budget for 2023, '24 and '25? Bjarne, to you.
It is possible of course. We haven't given those details yet so we included the total budget. So we might come back to that when we are at a later stage, but currently we report on this level.
Question from [ Aspen Johnson ]. Do you see potential for further improvement in the feed conversion ratio? And if so, what is a reasonable target?
Of course we see improvements in both having a better and precise recipe for the feed itself, which will reduce the feed conversion rates. And we see also improvements to have lower survival rates, which we have -- we will do on the next pools. So I'd say it's minor adjustments and optimization that allow us to have better feed conversion rates also in the next pools even if the numbers are very good on the first one.
A question from [ Jorgen Wotton ]. Is Andfjord Salmon mainly using in external third-party fish health services today?
We have our own Fish Health and Quality Manager, Christine Thomassen, who has been working as veterinarian for the fish in over 30 years in Vesteral. One of the national leading competence within her field. So we have extremely good competence internal, but also we are using the best experts in Norway, [indiscernible] also as a supervisor. So they are monitoring the biology and supporting the company in general tasks. So we have a good network also around that included to the internal resources.
Okay. Any questions from the audience?
When will you start drawing on the construction loan?
Yes. The construction loan will cover 50% of the investment or up to 50% of the investment and we will start with investing equity first and then we will start drawing on the loan. So you ask about the timing, that will be somewhere between the last part of Q1 or beginning of Q2. That's when we start drawing on that. The majority of the investment will be from now on until during the 2024 during the year.
We have 1 more question from the webcast to Martin. What is the main biological challenge you faced during the first production cycle?
The main challenge, 50% of the mortality was caused by fish jumping in the walls. And then we installed like some airbag solution where it's got a soft landing and after that installation, we reduced the mortality almost overnight. So this is a small part of -- the numbers are small, but this is the largest improvement we see for even get a better biology in the next phase.
Okay. Then it looks like we don't have any more questions on the webcast and it looks like the audience is happy. So 1 more question here.
What will you say is the biggest uncertainty before you put the 4 new pools into operation? What is the biggest thing that you would like to see go well? I mean I know that you like to say everything is under control, but I'm sure there's something. Okay. There's 4 pools going at the same time. What is the biggest kind of risk factor the way you see it compared to the new operation?
Maybe if I start construction wise. As everyone dealing with massive projects, interfaces between the different factors. So making sure you cover all the interfaces between technical and concrete, technical and Harbour and that is a huge focus for us continuously. And I'm very pleased seeing that we are solving everything around the table instead of being done in the pool pit. And I must say that with all these experienced entrepreneurs that we have involved in this cooperation phase or the phase that we choose to run the project, I'm very pleased that we will be able to handle that. But for sure interfaces is my main worry as I would assume is for all the project managers.
And when it comes to the biology, it's like when you're working with biology even if it's fish or it's human, it's not about eliminating risk, it's taking the risk down. And if you look at the concept of Andfjord Salmon, you have good solutions on all the risk elements from traditional salmon farming. You have solved the lice, you have a lower risk for impact from other sites. So everything is taken down to a minimum. So we cannot highlight 1 thing. I sleep very good at night to say it like that.
We have 1 more question from the webcast. Could [indiscernible] cause problems. So this is the type of jelly fish that has caused some problems with ocean-based pens in the latest month. But could that be a problem at Andfjord Salmon?
Again it's all about taking down the risk. And when you have water in it at 40 meters in combination with the inlet points where it's like a slope in the sea. So the water inlet itself, it's very protective against everything, all the living organisms. So I think we are very good prepared and protected to these scenarios.
Thank you. Then we don't have any more questions. So with that, it's time to say thank you for everyone who attended.
Thank you for being here. And as we said, we have a box with products. We hope that you take it home and taste it yourself. So thank you for your time.