REG - Dekel Agri-Vision - April Palm Oil Production Update

Dekel Agri-VisionAnnouncement

10/05/2023 07:00

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RNS Number : 8280Y  Dekel Agri-Vision PLC  10 May 2023

 

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

 

Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food Producers

 

Dekel Agri-Vision Plc

('Dekel' or the 'Company')

April Palm Oil Production Update

 

Dekel Agri-Vision Plc (AIM: DKL), the West African agriculture company focused
on building a portfolio of sustainable and diversified projects, is pleased to
provide an April production update for its Ayenouan palm oil project in Côte
d'Ivoire ('Palm Oil Operation').

 

Key Highlights

·      The Palm Oil Operation experienced an exceptional operational
performance in April 2023, primarily driven by two factors: record-breaking
April monthly volumes of Fresh Fruit Bunch ('FFB') and strong Crude Palm Oil
('CPO') prices. The combination of these factors resulted in an outstanding
monthly performance.

·      April 2023 FFB volumes and CPO production increased 119.1% and
108.4% respectively compared to April 2022.  The increase in production was
driven by:

o  FFB high season commencing later than previous years;

o  Lower prior year comparables due to the weak FFB 2022 high season

·      The Company is continuing to see strong local Crude Palm Oil
('CPO') demand resulting in CPO sales quantities increasing 123% in April
compared to last year.  Palm Kernel Oil ('PKO') production was also strong
increasing 93.9% compared to last year.  PKO sales continue to be sold in
batches to maximise prices and we expect to see strong PKO sales quantities in
the coming months as stock levels on hand increase.

·      CPO sales prices remain high at €976 per tonne with premium
local CPO sales prices continuing to be achieved despite the international CPO
prices slightly softening during the month to around US$975-1000 per tonne
(from US$1,025 per tonne during March 2023).

·      The CPO extraction rate was slightly lower than last month but
remained sound at 21.4%.  Similar to last month, the delivery of peak FFB
volumes tends to lead to increased double handling of FFB at the mill site
awaiting processing.

·      The overall financial performance for April was a 'standout'
monthly financial outcome.

 

                                              Apr-23  Apr-22    Change

 FFB processed (tonnes)                       28,846  13,168    119.1%
 CPO Extraction Rate                          21.4%   22.5%     -4.9%
 CPO production (tonnes)                      6,179   2,965     108.4%
 CPO Sales (tonnes)                           3,988   1,788     123.0%
 Average CPO price per tonne                  €976    €1,061    -8.0%
 Palm Kernel Oil ('PKO') production (tonnes)  382     197       93.9%
 PKO Sales (tonnes)                           Nil     212       n/a
 Average PKO price per tonne                  n/a     €1,448    n/a

 

Lincoln Moore, Dekel's Executive Director, said: "We are pleased to see the
Palm Oil Operation's high season come to fruition, which began later than its
usual schedule this year, culminating in a record monthly production outcome
for April. The production of Crude Palm Oil has demonstrated continued
strength in early May, compared to May last year. These positive trends bode
well for the Palm Oil Operation, positioning it to achieve an excellent period
of production and financial performance throughout the second quarter of
2023."

 

 

** ENDS **

 

For further information, please visit the Company's website
www.dekelagrivision.com or contact:

 

 Dekel Agri-Vision Plc                     +44 (0) 207 236 1177

 Youval Rasin

 Shai Kol

 Lincoln Moore

 WH Ireland Ltd (Nomad and Joint Broker)   +44 (0) 20 7220 1666

 James Joyce

 Darshan Patel

 Optiva Securities Limited (Joint Broker)  +44 (0) 203 137 1903

 Christian Dennis

 Daniel Ingram

 

Notes:

Dekel Agri-Vision Plc is a multi-project, multi-commodity agriculture company
focused on West Africa. It has a portfolio of projects in Côte d'Ivoire at
various stages of development: a fully operational palm oil project in
Ayenouan where fruit produced by local smallholders is processed at the
Company's 60,000tpa capacity crude palm oil mill and a cashew processing
project in Tiebissou, which is currently transitioning to full commercial
production in 2023.

 

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