REG - Dekel Agri-Vision - Full Year 2024 Operational Update

Dekel Agri-VisionAnnouncement

14/01/2025 07:00

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RNS Number : 1254T  Dekel Agri-Vision PLC  14 January 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.

 

14 January 2025

 

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

 

Dekel Agri-Vision Plc

('Dekel' or the 'Company')

Full Year 2024 Operational Update, Issue of Equity and Total Voting Rights

 

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 its unaudited full year production update for the year ending 31
December 2024 ('FY-2024') for the Ayenouan palm oil project in Côte d'Ivoire
('Palm Oil Operation') and the cashew processing plant at Tiebissou, Côte
d'Ivoire (the 'Cashew Operation').

 

Palm Oil Operation Update

·      The performance of the Palm Oil operation in 2024 was a story of
two contrasting halves. The first half of the year saw relatively strong Crude
Palm Oil (CPO) production but lower prices, while the second half experienced
lower production alongside a significant uplift in CPO prices. This upward
trend in CPO prices culminated in December 2024, with CPO prices exceeding
€1,000 per tonne, which is very encouraging as we approach the peak season.

 

                                              FY-2024  FY-2023  Change

 FFB processed (tonnes)                       151,101  182,362  -17.0%
 CPO Extraction Rate                          21.5%    21.4%    0.5%
 CPO production (tonnes)                      32,498   39,073   -16.8%
 CPO Sales (tonnes)                           32,491   38,896   -16.5%
 Average CPO price per tonne                  €790     €869     -9.1%
 Palm Kernel Oil ('PKO') production (tonnes)  2,096    2,420    -13.4%
 PKO Sales (tonnes)                           2,059    2,404    -14.4%
 Average PKO price per tonne                  €825     €828     -0.4%

 

·      Fresh Fruit Bunch ('FFB') volumes and Crude Palm Oil ('CPO')
production decreased 17% and 16.8% respectively compared to FY 2023.

·      CPO sales quantities decreased 16.5% in FY 2024 compared to last
year, which was consistent with the lower CPO production.

·      The FY 2024 average CPO sales price achieved was historically
strong at €790 per tonne, albeit 9.1% below the 2023 CPO sales prices.

o  In recent months, international CPO prices have risen significantly,
driving up local CPO prices as well. Notably, December 2024 CPO sales achieved
a near record €1,014 per tonne.

·      The CPO extraction rate for FY 2024 of 21.5% was slightly higher
than the 21.4% achieved in FY 2023.

 

Cashew Operation Update

·      The Cashew Operation took a significant step forward in Q4-2024
with Raw Cashew Nut ('RCN') processed and cashews produced increasing 115.9%
and 234.3% respectively compared to Q4 2023.

·      We also saw a significant uplift in Peeled Cashew prices in Q4
2024 of 61.5% compared to Q4 2023.  This is due to both improved efficiencies
which improved the mix of final products for sale and higher market prices for
Cashews.

·      As a result of the above, our management accounts show the Cashew
Operation has reported a maiden positive EBITDA result for the month of
December 2024.

·      Limited RCN stock is currently the primary constraint on
production growth over the next 6-8 weeks. However, with the RCN buying season
kicking off in mid to late February 2025, we are well-positioned to
significantly ramp up production. Coupled with relatively higher cashew
prices, the Cashew Operation is on track to deliver a positive EBITDA outcome
for FY2025.

 

                                                     Q4-2024   Q4-2023   Change  FY-2024   FY-2023   Change

 Raw Cashew Nut ('RCN') Inventory
 Opening RCN Inventory (tonnes)                      1,217     1,971     -38.3%  1,751     1,841     -4.9%
 RCN Purchased (tonnes)                              -         -         n/a     419       1,419     -70.5%
 RCN Processed (tonnes)                              475       220       115.9%  1.428     1,509     -5.4%
 Closing RCN Inventory (tonnes)                      742       1,751     -57.6%  742       1,751     -57.6%

 Cashew Processing
 Opening Cashews (tonnes)                            75        202       -62.9%  154*      111       38.7%
 RCN Processed (tonnes)                              475       220       115.9%  1,428     1,509     -5.4%
 Cashew Extraction Rate                              24.2%**   20.6%     17.5%   21.8%     21.9%     -0.5%
 Cashew Produced (tonnes)                            117       35        234.3%  311       330       -5.8%
 Cashew Sales (tonnes)                               111       61        82.0%   386       265       45.7%
 Closing Cashews (tonnes)                            79        176       55.1%   79        176       -55.1%
 *Opening balance adjustment of 22tn.

 ** Included RCN work in progress at November month end.  Normalised rate
 continued to be approximately 22%.
 Average Sales prices per tonne
 -       Unpeeled Cashews                            n/a       €3,000    n/a     €3,400    €3,200    6.3%
 -       Peeled Cashews (including mixed)            €6,300    €3,900    61.5%   €3,900    €3,900    Nil

 

Issue of Equity and Total Voting Rights

In addition, application will be made to the London Stock Exchange for the
admission of a total of 740,000 ordinary shares of €0.0003367 each
("Ordinary Shares") issued to certain advisers in settlement of fees for
services provided ("Admission"). It is expected that Admission will become
effective on or around 21 January 2025. Following Admission, the Company's
issued share capital will consist of 560,814,153 Ordinary Shares which may be
used by shareholders as the denominator for the calculations by which to
determine if they are required to notify their interest in, or a change to
their interest in, the Company under the FCA's Disclosure and Transparency
Rules.

Lincoln Moore, Dekel's Executive Director, said: "We are pleased to announce
the achievement of our first positive monthly EBITDA from the Cashew Operation
in December 2024. The new equipment installed has performed exceptionally
well, and we anticipate a significant boost in production in 2025. Combined
with rising cashew prices, this gives us strong confidence in delivering a
meaningful positive EBITDA for the Cashew Operation in the coming year."

"Meanwhile, with CPO prices nearing historical highs and the peak season just
around the corner, we also expect a notable increase in EBITDA for the Palm
Oil Operation in 2025. Achieving profitability in both operations
simultaneously has always been our goal, and we are now finally on the verge
of delivering this goal."

** 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

 Zues Capital Ltd (Nomad and Joint Broker)  +44 (0) 203 829 5000

 James Joyce

 Darshan Patel

 Optiva Securities Limited (Joint Broker)   +44 (0) 203 829 5000

 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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