REG - Dekel Agri-Vision - Full Year Production Update

Dekel Agri-VisionAnnouncement

10/01/2022 07:05

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RNS Number : 8480X  Dekel Agri-Vision PLC  10 January 2022

 

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

 

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

Full Year Production Update

 

Dekel Agri-Vision Plc, the West African focused agriculture company, is
pleased to provide a production update for its 100%-owned vertically
integrated Ayenouan palm oil project in Côte d'Ivoire ('Ayenouan' or the
'Project') for the year ended 31 December 2021.

 

Key Highlights

Month of December 2021 Production and Sales

·      110.2% increase in December 2021 CPO production compared to
December 2020, the highest monthly like for like uplift in production in 2021

·      120% increase in December 2021 CPO sales compared to December
2020

·      Company record monthly CPO sales price achieved of €968 per
tonne

·      Company record monthly PKO price achieved of €1,372 per tonne

 

2021 Full Year Production and Sales

·      Company record Full Year production of CPO of 39,953 tonnes and a
near record CPO sales of 39,092 tonnes

·      Company record Full Year CPO price achieved of €868 per tonne

·      Company record Revenue to be reported in annual results

 

Further details regarding production and sales for December and for the 2021
full year can be found in the table below.

                          Dec-21    Dec-20  Change  FY 2021  FY 2020  Change

 FFB processed (tonnes)   14,395    6,929   107.8%  190,020  154,151  23.3%
 CPO production (tonnes)  3,010     1,432   110.2%  39,953   34,002   17.5%
 CPO sales (tonnes)       3,225     1,466   120.0%  39,092   34,008   14.9%
 Average CPO price/tonne  €968      €700    38.3%   €868     €602     44.2%
 PKO production (tonnes)  239       126     89.7%   2,549    2,516    1.3%
 PKO sales (tonnes)       168       44      281.8%  2,707    2,207    22.7%
 Average PKO price/tonne  €1,372    €610    124.9%  €851     €597     42.5%
 PKC production (tonnes)  369       151     144.4%  4,019    4,045    -0.6%
 PKC sales (tonnes)       356       125     184.8%  3,076    3,892    -21.0%
 Average PKC price/tonne  €78       €61     27.9%   €78      €60      30.0%

These figures remain subject to full year audit and year end stock adjustments

 

Crude Palm Oil Production

·      17.5% increase in FY2021 CPO production compared to FY2020
resulting in record annual production of 39,953 tonnes

·      110.2% increase in December 2021 CPO production compared to
December 2020

·      21% extraction rate achieved in FY 2021 (FY 2020: 22.1%).
Improving the extraction rate is a key focus of the current ongoing annual
year end Mill maintenance.  Early indications are promising as the extraction
rate increased 0.66 percentage points over the last month.

 

Sales and Pricing

·      14.9% increase in FY2021 CPO sales compared to FY2020 resulting
in record annual sales of 39,092 tonnes.  This excludes final CPO stock on
hand of approximately 700 tonnes which will be sold in January. (FY 2020 CPO
stock on hand 220 tonnes)

·      44.2% increase in CPO prices to €868 per tonne in FY2021 (FY
2021: €602).  This represents an annual Company record sales price

·      December CPO prices achieved of €968 per tonne (a Company
record) is materially higher than the annual average CPO price achieved

·      High current pricing bodes well for the upcoming 2022 high season

o  Current local CPO prices remain materially higher than the Company
achieved in the 2021 high season

o  Local demand for CPO remains solid even after taking into account the high
current prices

 

Palm Kernel Oil ('PKO') Production and Sales

·      22.7% increase in FY2021 PKO sales compared to FY2020

·      Company record PKO price achieved in December 2021 of €1,372
per tonne.  As envisaged in the November 2021 production update, the Company
has successfully exported PKO in December at materially high prices than can
be achieved locally.  In 2022, the Company will aim to export PKO where
possible should  current international prices remain higher .

 

Dekel Executive Director Lincoln Moore said: "2021 was a highly successful
year for our palm oil operation, particularly in the second half low season
where significantly higher than normal volumes and record sales prices
contribute to a year where CPO production and CPO pricing records were broken.
Furthermore, with CPO prices continuing to remain at 10-year highs, we are
looking forward to the upcoming high season, which typically runs from around
late Jan through to May with great optimism for another outstanding year.
Together with the commencement of production at our cashew project at
Tiebissou which we expect will gain significant momentum in 2022, we are
confident that the year ahead will see a further material uplift from 2021's
strong performance.  We look forward to providing updates on further
progress."

 

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.

 

 

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