As disclosed in the trading update on 11 April 2023, Salmon Evolution ASA (“Salmon Evolution” or the “Company”, OSE: SALME) is planning to start harvesting of batch 2 at Indre Harøy in May with the entire batch planned harvested during the second quarter.

The Company is currently experiencing increased mortality levels in selected fish groups. As per 29 April 2023 the aggregated mortality level for each batch ranges from 0.3% – 7.9%. The reason for the increased mortality is relating to gill health, suspected to be caused by external pathogens.

The Company is investigating the root cause and taking precautionary steps to mitigate the situation, including increased UV dosage on intake water. The facility is otherwise operating under stable conditions with relevant water quality parameters at normal levels.

Summary of biomass situation:

• Batch 2: Current biomass is estimated to more than 800 tonnes (LW) with an average weight of approximately 4 kg (LW). Harvesting is planned to commence shortly with the full batch expected to be harvested by early June at the latest.
• Batch 3: Currently split into two fish groups with an average weight of around 1.6 kg (LW).  One of the fish groups is currently experiencing increased mortality.
• Batch 4: Currently split into two fish groups. Low accumulated mortality, but at increased levels for the smallest group.
• Batch 5: Normal feeding and low mortality levels.

The Company plans to stock five additional batches during 2023 of which the next two batches are planned stocked during the second quarter. Depending on the future performance of the existing batches and any potential decisions to commence early harvest at suboptimal weights, expected timing for phase 1 steady state production volume may be delayed from late Q3 2023 to late Q4 2023.

As to the financial impact of the situation, batch 2 is still expected to generate substantial revenues upon harvest and sale. Furthermore, any harvest of fish at suboptimal weights is also expected to generate revenues.