REG - Dekel Agri-Vision - November Palm Oil & Cashew Operation Update

Dekel Agri-VisionAnnouncement

09/12/2022 07:00

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RNS Number : 1414J  Dekel Agri-Vision PLC  09 December 2022

 

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.

 

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

 

Dekel Agri-Vision Plc

('Dekel' or the 'Company')

November Palm Oil Production Update and Cashew Operation 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 a November production update for its Ayenouan palm oil project in
Côte d'Ivoire ('Palm Oil Operation') and an update on progress regarding the
ramp-up of production of our large-scale cashew processing plant at Tiebissou,
Côte d'Ivoire (the 'Cashew Operation').

 

Key Highlights

·     November 2022 Crude Palm Oil ('CPO') production was slightly lower
compared to last month.  This is in line with historical trends during this
period of the year but 42.5% lower than the unusually high November 2021 CPO
production.

·    CPO prices remain very strong with prices achieved continuing to be
close to all-time highs (€1,043 per tonne).  International CPO prices
remain robust trading between €1,025 - 1,075 per tonne.

·    The Cashew Operation capacity continued to steadily improve in
November and is well on track to meet the Company's 2023 objective of
processing capacity of 10,000tn of raw cashew nuts ('RCN').

·    European feedback following a customer roadshow in Rotterdam has been
very positive. In particular, the high quality of Dekel's product has been
well noted and significant buyer interest was obtained for 2023 production.

 

 

                                               Nov-22    Nov-21  Change

 FFB processed (tonnes)                        7,361     13,181  -44.2%
 CPO Extraction Rate                           20.9%     20.2%   3.5%
 CPO production (tonnes)                       1,535     2,669   -42.5%
 CPO Sales (tonnes)                            1,788     1,837   -2.7%
 Average CPO price per tonne                   €1,043    €956    9.1%
 Palm Kernel Oil ('PKO') production (tonnes)   90        212     -57.5%
 PKO Sales (tonnes)                            Nil       106     n/a
 Average PKO price per tonne                   n/a       €930    n/a
 Palm Kernel Cake ('PKC') production (tonnes)  Nil       298     n/a
 PKC Sales (tonnes)                            Nil       304     n/a
 Average PKC price per tonne                   n/a       €80     n/a

 

CPO Production

·    CPO volumes were slightly lower than last month which is typical
historically for this time of the year, however CPO volumes were 42.5% lower
than the unusually high volumes in November 2021.

·    Given the weak production throughout Côte d'Ivoire, competition has
been stronger than normal for fresh fruit bunches ('FFB') however this has
largely been offset by strong CPO extraction rates and sales prices.

·     The CPO extraction rate achieved in November 2022 of 20.9% remained
strong for a low season month, in addition to being 3.5% higher than November
2021.

CPO Price

·    Local CPO prices achieved of €1,043 were 9.1% higher than November
2021. International CPO prices remain strong and are currently trading at
€1,025 -1,075 per tonne.

CPO Sales

·     November 2022 saw strong CPO sales volumes relative to production
which together with continued strong prices resulted in monthly revenue just
below November 2021 despite the weak production.

·     Local CPO sales demand remains strong.  This is clearly partly
due to the weak local production this year and the Company expects demand to
remain strong during the upcoming high season where local refineries will be
keen to replenish their low CPO stock levels.

·     PKO and PKC sales are being held to sell in larger batches to
maximise prices therefore there were no sales in November.

Cashew Operation

·    Further to the Company's announcement on 10 October 2022, the
production capacity is tracking well to meet the goal of operating capacity of
10,000tn in 2023.  We have been replenishing our stock and currently hold
c.1,750tn of RCN.  Dekel will also be actively buying stock during the cashew
season which runs between February to June each year to fulfil the 2023
production objectives.

·    Following the successful first export shipment of cashew last month,
we undertook a buyers roadshow in Rotterdam during November.  Potential
buyers have been very positive regarding the quality of our product which
positions us well to maximise our sales prices as we transition into full
scale commercial production in 2023.

 

Lincoln Moore, Dekel's Executive Director, said: "We look forward to the
coming few months.  In terms of the Palm Oil Operation, we are optimistic
that CPO prices will remain well above long term averages and the local market
is hopeful we will see an improvement in high season volumes which sets up the
Palm Oil Operation for a strong H1 2023.  The Cashew Operation is shaping up
well and we are well set to see a material contribution from this operation
also in H1 2023."

 

** 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

 Megan Liddell

 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 in 2023.

 

 

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