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

Dekel Agri-VisionAnnouncement

08/09/2023 07:00

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RNS Number : 7822L  Dekel Agri-Vision PLC  08 September 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.

 

8 August 2023

 

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

 

Dekel Agri-Vision Plc

('Dekel' or the 'Company')

August 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 August production update for its Ayenouan palm oil project in Côte
d'Ivoire ('Palm Oil Operation').

 

Key Highlights

·      The Palm Oil Operation delivered a 6(th) consecutive month of
stronger like for like production in August 2023 compared to August 2022
recording increases in Crude Palm Oil ('CPO') and Palm Kernel Oil ('PKO')
production of 38.3% and 103.3% respectively.

·      Like for like August 2023 CPO sales volumes continued to be
strong increasing 55.6% compared to last year and August PKO sales volumes
increasing 1,116.4%.  The exceptional sales quantities of PKO in particular,
reflect the unwinding of higher than normal inventory numbers at the end of H1
2023 resulting from the strong late peak to the recent production high season.

·      CPO sales prices increased slightly to €822 per tonne in August
2023 compared to €814 per tonne achieved last month.  Local CPO prices are
still trading slightly below international CPO prices which traded around
€850 per tonne in August 2023 due to high than normal local stock
supplies.

·      The CPO extraction rate started August on a slight upward
trajectory before tapering off during the back end of August 2023 to finish at
18.4%.  This typically means we are in the heart of the low season and we
expect extraction rates to trend high over the coming months.

·      The financial results for August 2023 were stronger compared to
August 2022, largely driven by the 55.6% increase in CPO sales volumes and the
exceptionally high PKO sales volumes.

 

                                              Aug-23  Aug-22    Change

 FFB processed (tonnes)                       7,659   5,281     45.0%
 CPO Extraction Rate                          18.5%   19.4%     -4.6%
 CPO production (tonnes)                      1,416   1,024     38.3%
 CPO Sales (tonnes)                           1,786   1,148     55.6%
 Average CPO price per tonne                  €822    €1,030    -20.2%
 Palm Kernel Oil ('PKO') production (tonnes)  185     91        103.3%
 PKO Sales (tonnes)                           815     67        1,116.4%
 Average PKO price per tonne                  €798    €1,220    -34.6%

 

Lincoln Moore, Dekel's Executive Director, said: "We are pleased to record our
6(th) consecutive month of stronger CPO production compared to last year.
Together with strong CPO and PKO sales volumes, the Palm Oil Operation monthly
financial performance during H2 2023 continues to track well ahead of H2
2022."

 

 

** 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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