REG - Dekel Agri-Vision - Half Year Operational Update

Dekel Agri-VisionAnnouncement

10/07/2024 07:00

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RNS Number : 7538V  Dekel Agri-Vision PLC  10 July 2024

 

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 July 2024

 

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

 

Dekel Agri-Vision Plc

('Dekel' or the 'Company')

Half Year Operational 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 its half year production update for the period ending 30 June 2024
('H1 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

·      Overall, we expect to deliver another strong H1 financial
performance from the Palm Oil operation with robust production levels and
relatively high historical CPO prices.

·      The Palm Oil Operation experienced a consistent high season
albeit slightly below the relatively strong H1 2023 results with Fresh Fruit
Bunch ('FFB') volumes and Crude Palm Oil ('CPO') production decreasing
marginally by 8.1% and 7.7% respectively compared to H1 2023.

·      CPO sales quantities increased 7.7% in H1 2024 compared to last
year.  This is largely due to last year's high season arriving much later
than normal, leading to high CPO stock levels at the end of H1 2023.

·      The H1 2024 average CPO sales price achieved was historically
strong at €770 per tonne, albeit 17.6% below H1 2023 CPO sales price.
International prices continue to remain steady at approximately €900 per
tonne and we continue to see local CPO prices gradually increase towards the
international price with June 2023 prices achieved of €773 per tonne.

·      The CPO extraction rate for H1 2024 of 22.0% was slightly higher
than H1 2023.  Recent monthly CPO extraction rates including June 2024 have
exceeded 23% which bodes well for H2 2024.

 

                                              H1-2024  H1-2023  Change

 FFB processed (tonnes)                       105,444  114,745  -8.1%
 CPO Extraction Rate                          22.0%    21.9%    0.5%
 CPO production (tonnes)                      23,236   25,166   -7.7%
 CPO Sales (tonnes)                           22,360   20,758   7.7%
 Average CPO price per tonne                  €770     €934     -17.6%
 Palm Kernel Oil ('PKO') production (tonnes)  1,367    1,442    -5.2%
 PKO Sales (tonnes)                           1,333    515      158.8%
 Average PKO price per tonne                  €803     €947     -15.2%

 

Cashew Operation Update

·      The Cashew Operation continued to operate on a conservative basis
while we eagerly await the commissioning of new off the shelf shelling and
peeling equipment.

·      All new shelling and peeling equipment was ordered in January
2024.  Deliveries started arriving last week related to the peeling section
functionality. Shipments related to shelling are scheduled to arrive in late
July with the last remaining items related to parts of the peeling
functionality in September.

·      Commissioning of new equipment is being overseen by a highly
credentialled cashew processing consultant and will start over the coming
weeks. We expect to see an improvement in cashew production volumes and
quality in late Q3 2024.

·      Pleasingly, we have seen a material increase in whole cashew
sales prices in the last few weeks which should also be reflected in our Q3
production and sales update.

 

                                       H1-2024   H1-2023

 RCN Inventory
 Opening RCN Inventory (tonnes)        1,751     1,841
 RCN Purchased (tonnes)                419       1,378
 RCN Processed (tonnes)                588       759
 Closing RCN Inventory (tonnes)        1,582     2,460

 Cashew Processing
 Opening Cashews (tonnes)              154*      111
 RCN Processed (tonnes)                588       759
 Cashew Extraction Rate                19.6%     23.3%
 Cashew Produced (tonnes)              115       177
 Cashew Sales (tonnes)                 215       170
 Closing Cashews (tonnes)              54        118

 Average Sales prices per tonne
 -       Whole Unpeeled Cashews        €3,300    €3,500
 -       Whole Peeled Cashews          €4,250    €4,400
 -       Mixed Peeled Cashews          €3,100    €3,750

* Opening cashew adjustment of 22tn

 

Lincoln Moore, Dekel's Executive Director, said: "We expect to deliver another
strong H1 financial performance from the Palm Oil operation with the continued
sustained period of robust production levels and relatively high historical
CPO prices."

 

"We continue to conservatively produce from the Cashew Operation whilst we
eagerly await the commissioning of new equipment which we believe is finally
edging towards conclusion. We are pleased to see a recent increase in cashew
prices which will also greatly assist the financial metrics of the Cashew
Operation moving forward.

 

 

** 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.

 

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