REG - Dekel Agri-Vision - February Palm Oil & Cashew Operation Update & TVR

Dekel Agri-VisionAnnouncement

10/03/2025 07:00

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RNS Number : 8187Z  Dekel Agri-Vision PLC  10 March 2025

 

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.

 

10 March 2025

 

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

 

Dekel Agri-Vision Plc

('Dekel' or the 'Company')

February Palm Oil Production Update and Positive Cashew Operation Update and
TVR

 

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 a February production update for its Ayenouan palm oil project in
Côte d'Ivoire ('Palm Oil Operation') as well as continued positive progress
regarding the operational performance of the cashew processing plant at
Tiebissou, Côte d'Ivoire (the 'Cashew Operation').

 

The Palm Oil Operation has continued its strong start to 2025, with Crude Palm
Oil ('CPO') sales prices continuing to be significantly higher, while
production remains largely in line with last year.  Overall revenue for
February 2025 is expected to be over 70% higher than February 2024.

Key Performance Metrics: February 2025 vs. February 2024

·      CPO Production: 3,527 tonnes, a slight decrease of 5.7%.  The
high season appeared to commence mid-month with a notable increase in
production in the last few days of February.

·      CPO Extraction Rate: a slight increase to 21.9%.

·      CPO Sales Volume: Increased by 28.5%, driven by strong sales
demand in February resulting in a larger than typical amount of production
being sold within the month.

·      CPO Sales Price: Up 25.2% to €950 per tonne, reflecting
continued strength in international CPO prices.

·      Palm Kernel Oil ('PKO') Sales Price:  A significant 54.4%
increase in prices coupled together with a 176.9% increase in PKO sales.
Local PKO prices have increased significantly in the last 2 months driven by
the recent jump in international PKO prices.

·      CPO Sales Revenue: February 2025 revenue expected to be over 70%
higher than February last year. With international CPO prices remaining near
historical highs and production expected to continue rising now the high
season is heading towards its peak.

·      Cashew Operation: The recent positive trend in Cashew Operations
has continued compared to 2024.  To prepare for the increase in production in
2025,we have commenced the process of procuring an initial 2,500tn of raw
cashew nut ('RCN') with further purchasing planned in the coming months.
Quarterly production and sales data will be reported next month. We continue
our guidance that we expect to report significantly improved results,
including achieving our first-ever EBITDA-positive performance in the year
ahead.

 

                                              Feb-25    Feb-24  Change

 FFB processed (tonnes)                       16,125    17,294  -6.8%
 CPO Extraction Rate                          21.9%     21.6%   1.4%
 CPO production (tonnes)                      3,527     3,742   -5.7%
 CPO Sales (tonnes)                           3,177     2,472   28.5%
 Average CPO price per tonne                  €950      €759    25.2%
 Palm Kernel Oil ('PKO') production (tonnes)  217       208     4.3%
 PKO Sales (tonnes)                           299       108     176.9%
 Average PKO price per tonne                  €1,189    €770    54.4%

 

Lincoln Moore, Dekel's Executive Director, said: "During February, the Palm
Oil Operation saw a 28.5% rise in CPO sales volume and a 25.2% price increase
to €950 per tonne, reflecting strong demand and international price
strength. PKO sales prices also jumped 54.4% with strong sales volumes,
boosting overall revenue, which is expected to be over 70% higher than
February last year. Meanwhile, the Cashew Operation continues its positive
momentum, with an initial 2,500-tonne RCN purchase in progress to support
increased 2025 production. With strong market conditions, both operations are
on track for a significantly improved financial performance, including the
Cashew Operation's first-ever EBITDA-positive year."

 

Issue of Equity and Total Voting Rights

Further to the announcement made on 14 January 2025, 740,000 ordinary shares
have now been allotted, and application has been made for the new ordinary
shares to be admitted to trading on AIM on or around 12 March 2025. Following
admission, the Company's issued share capital will consist of 560,814,153
Ordinary Shares.

 

 

** 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

 Zeus (Nomad and Joint Broker)             +44 (0) 203 829 5000

 James Joyce

 Darshan Patel

 John Moran

 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.

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