REG - Dekel Agri-Vision - August Palm Oil Production & Cashew Project Update

Dekel Agri-VisionAnnouncement

12/09/2022 07:00

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RNS Number : 0198Z  Dekel Agri-Vision PLC  12 September 2022

 

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

 

Dekel Agri-Vision Plc

('Dekel' or the 'Company')

August Palm Oil Production Update and Cashew Operation 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 August production update for its Ayenouan palm oil project in Côte
d'Ivoire ('Palm Oil Operation') and an update on progress regarding the
ramp-up of production of our large-scale cashew processing plant at Tiebissou,
Côte d'Ivoire (the 'Cashew Operation').

 

Key Highlights

·      We believe we are now reaching the tail end of the Palm Oil
Operation low season. Local Crude Palm Oil ('CPO') prices continue to be
strong; however, Fresh Fruit Bunch ('FFB') volumes remained low in August.
Promisingly, we are seeing indications FFB volumes may be trending upwards in
early September compared to August.

·      We now have all key equipment to ramp up production of the Cashew
Operation on site and we are in the final installation and commissioning
stage, including the 11 shelling machines previously mentioned in the
Company's announcement dated 10 August 2022. This will provide an opportunity
for the Company to significantly expand its production capacity.

 

                                               Aug-22    Aug-21  Change

 FFB processed (tonnes)                        5,281     8,469   -37.6%
 CPO Extraction Rate                           19.4%     19.8%   -2.0%
 CPO production (tonnes)                       1,024     1,678   -39.0%
 CPO Sales (tonnes)                            1,148     1,852   -38.0%
 Average CPO price per tonne                   €1,030    €947    8.8%
 Palm Kernel Oil ('PKO') production (tonnes)   91        169     -46.2%
 PKO Sales (tonnes)                            67        571     -88.3%
 Average PKO price per tonne                   €1,220    €832    46.6%
 Palm Kernel Cake ('PKC') production (tonnes)  31        293     -89.4%
 PKC Sales (tonnes)                            n/a       211     n/a
 Average PKC price per tonne                   n/a       €80     n/a

 

CPO Production

·      FFB quantities remained low during August which is typically the
lowest performing month of the year. Early indications for September are
promising, suggesting that volumes may be trending upwards following unusually
low like-for-like monthly volumes since February.

·      The CPO extraction rate achieved of 19.4% was slightly lower than
August 2021 but remained reasonable for a low season month.

CPO and PKO Price

·      Local CPO prices in August 2022 achieved of €1,030 were 5.9%
higher than July 2022 and 8.7% higher than August 2021. This was a pleasing
result given International CPO prices softened slightly to approximately
€1,050 - 1,100 per tonne. There remains excellent local demand around the
€1,000 price range which bodes well should FFB volumes continue to trend
upwards over the coming months.

·      Like-for-like PKO prices for the month of August were 46.6%
higher than August 2021, continuing an excellent year of PKO prices achieved
from our regional export strategy and therefore remaining relatively high
despite falling from €1,431 in July 2022.

CPO Sales

·      38.0% lower like-for-like CPO sales quantities in August reflect
the 39.0% decrease in CPO produced in August 2022 compared to August 2021.

Cashew Project

·      All key equipment in order to ramp up production is now on site,
including the 11 shelling machines which are now being installed and
commissioned.  The next few weeks are important in terms of integrating all
equipment and we should be in a position to report a significant uplift in
production capacity at the time of next month's report.

·      The Company will provide further updates as appropriate in
respect of both the commissioning of the equipment and the ramp up in
production.

·      The latest pictures of our Cashew Operation are available on our
website: www.dekelagrivision.com (http://www.dekelagrivision.com) .

 

Lincoln Moore, Dekel's Executive Director, said: "We are now on the cusp of
delivering our short-term objective of operating our Palm Oil Operation and
Cashew Operation in tandem. With CPO prices continuing to trade at close to
long-term highs, we are hopeful that we will see FFB volumes improve,
particularly in the next high season, so we can capitalise fully on these
supportive prices. We now have all key equipment for the Cashew Operation on
site and are undertaking the final installation and commissioning phase. We
are entering an exciting phase of reaching our objective of operating an
enlarged Company with two material revenue streams from 2023 onwards."

 

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.

 

** 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

 Ben Good

 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 commenced production in early January 2022.

 

 

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