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

Dekel Agri-VisionAnnouncement

10/12/2024 07:00

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RNS Number : 3896P  Dekel Agri-Vision PLC  10 December 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 December 2024

 

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 Positive 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') as well as continued positive progress
regarding the operational performance of the cashew processing plant at
Tiebissou, Côte d'Ivoire (the 'Cashew Operation').

 

Key Highlights - Palm Oil Operation

·      Crude Palm Oil ('CPO') production low season has continued be low
with production 73.0% lower than the record November 2023 monthly production.
With the upcoming high season nearly upon us, agronomists are performing their
usual crop assessments which indicate we should see a sharp improvement in
production during the high season.

·      The CPO extraction rate for November 2024 was broadly in line
with November 2023 and pleasingly significantly higher than the 19.5% recorded
last month.

·      Like for like November 2024 CPO sales volumes were lower than
November 2023 reflecting the lower production levels.

·      As highlighted in last month's update, CPO sales prices increased
significantly to €968 per tonne in November 2024, a 24.4% increase compared
to November 2023.  We are now seeing high international CPO prices flowing
through to local prices which bodes well for the upcoming high season.

 

                                              Nov-24  Nov-23  Change

 FFB processed (tonnes)                       4,802   17,818  -73.0%
 CPO Extraction Rate                          21.3%   21.7%   -1.8%
 CPO production (tonnes)                      1,012   3,875   -73.9%
 CPO Sales (tonnes)                           1,311   3,256   -59.7%
 Average CPO price per tonne                  €968    €778    24.4%
 Palm Kernel Oil ('PKO') production (tonnes)  88      157     -43.9%
 PKO Sales (tonnes)                           155     100     55.0%
 Average PKO price per tonne                  €924    €838    10.3%

 

Key Highlights - Cashew Operation

·      We are pleased to report that the new equipment is continuing to
work very well with important KPI's related to peeling rates, whole vs broken
cashews and daily raw cashew nut ('RCN') processing levels all showing
sustained improvement.

·      With the new cashew equipment in good order, we continued to test
higher daily RCN quantities including successfully testing 15 tonnes of RCN
processed per day in November 2024.  Further testing at gradually higher
levels including 20 tonnes of RCN processed per day will be undertaken
imminently.

·      Overall sales prices continue to be strong compared to earlier
this year.

·      With the improvement in quantities, quality and pricing, the
Directors expect the Cashew Operation will move into monthly positive
operational cashflow during December 2024.

·      A detailed quarterly Cashew Operation update for Q4 2024 compared
to Q4 2023 will be provided next month on or around 10 January 2025.

 

Lincoln Moore, Dekel's Executive Director, said: "We saw a significant jump in
our CPO sales prices in November 2023 and although the CPO low production
season has lingered longer than normal, these higher prices should be very
supportive for the upcoming high season. The Cashew Operation step up in
performance continued in November and with daily processing rates increasing
it means the operation is now on the verge of producing monthly operational
cashflow during December 2024."

 

 

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

 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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