REG - Dekel Agri-Vision - Commencement of First Cashew Production

Dekel Agri-VisionAnnouncement

06/01/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220106:nRSF5698Xa&default-theme=true

RNS Number : 5698X  Dekel Agri-Vision PLC  06 January 2022

 

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

 

Dekel Agri-Vision Plc ('Dekel' or the 'Company')

Commencement of First Cashew Production

 

Dekel Agri-Vision Plc (AIM: DKL), the West African agriculture company focused
on building a portfolio of sustainable and diversified projects, is pleased to
announce the commencement of production of Cashews by our large scale cashew
processing plant at Tiebissou, Côte d'Ivoire (the 'Cashew Project').

 

Significant credit must be given to the operations team for their innovation
in sourcing local components whilst we await delivery of the final shipments
delayed by international material shortages and logistics challenges.

 

Four of the six final shipments have now arrived on site and have been
installed. The remaining two shipments comprise:

-       A colour sorter -scheduled to leave China next week and
estimated to take 21 days in transit

-       Shelling machinery - the initial 5 of the 15 required machines
will be shipped in 4-6 weeks with the remaining machines following shortly
thereafter. The initial 5 machines will allow volumes processed to move up to
33% of capacity.

 

Over the coming weeks we will be gradually increasing the volume of production
initially with the current configuration and then with the equipment outlined
above. All other phases of production have been commissioned and are operating
as expected. Upon the arrival and installation on site of the colour sorter
and shelling machinery we will move to full capacity. Pictures and short
videos of the cashew processing plant operating have been uploaded to our
website.

 

Milestones including key operating KPIs and sales are expected to be announced
during this period of capacity ramp up. The Company will then provide periodic
production updates similar to our Ayenouan palm oil project.

 

We currently have approximately 2,000 tonnes of raw cashew on hand which is
more than sufficient for Q1 2022 and we anticipate buying further raw cashews
in Q2 2022 to fulfil our raw material requirements for the remainder of the
year.

 

Lincoln Moore, Dekel's Executive Director, said: "We are excited to commence
production at the Cashew Project and commence the ramp up phase of production
despite the logistical and raw material sourcing hurdles we have encountered.
In tandem with the strong current performance of the palm oil operation, we
are now positioned for a material step up in the earnings profile of the
Company in 2022 and beyond."

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ("MAR").  Upon the publication of this announcement via a
Regulatory Information Service ("RIS"), 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

 Arden Partners Plc (Nomad and Joint Broker)  +44 (0) 207 614 5900

 Paul Shackleton / Ruari McGirr /

 Elliot Mustoe (Corporate Finance)

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

 Christian Dennis

 Jeremy King

 

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 crude palm oil mill; a cashew processing project in
Tiebissou, which commenced first production in early January 2022.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCBRGDBCUGDGDU