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

Dekel Agri-VisionAnnouncement

09/12/2021 07:00

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RNS Number : 0382V  Dekel Agri-Vision PLC  09 December 2021

 

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

 

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

November Palm Oil Production 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.

 

Key Highlights

Palm Oil Production

·    74.4% increase in November 2021 compared to November 2020, the
highest monthly like for like uplift in production in 2021

·      CPO prices remain strong with average prices achieved in November
2021 of €956, an uplift of 44% compared to November 2020

·      Dekel is currently on track to deliver a record year of annual
revenue for the palm oil operation

 

Lincoln Moore, Dekel's Executive Director, said: "The Ayenouan Project will
finish the year with continued strong momentum. The Company is heavily focused
on preparations (including the annual maintenance programme) for the high
season production ramp-up that is just 6 weeks away, in order to capitalise on
sales prices which are currently higher than the levels we achieved in the
2021 high season."

 

                              Nov-21  Nov-20  Change

 FFB processed (tonnes)       13,181  7,441   77.1%
 CPO production (tonnes)      2,669   1,530   74.4%
 CPO Sales (tonnes)           1,837   1,515   21.3%
 Average CPO price per tonne  €956    €664    44.0%
 PKO production (tonnes)      212     124     71.0%
 PKO Sales (tonnes)           106     367     -71.1%
 Average PKO price per tonne  €930    €579    60.6%
 PKC production (tonnes)      298     177     68.3%
 PKC Sales (tonnes)           304     266     14.3%
 Average PKC price per tonne  €80     €61     31.1%

 

Crude Palm Oil

·     Production and Sales: the 74.4% increase in November 2021
production compared to November 2020 represents the highest monthly like for
like production increase in 2021.  Whilst the 44% increase in sales
quantities increase is less than the increase in production,  the remaining
stock in our tanks has also been sold and we expect this stock will be
collected in the December and January monthly results

·      Prices: CPO sales prices remained very strong at €956

o  International CPO prices continue to trade at multi-year highs over
€1,050 per tonne, we are seeing local prices currently settling around
€950 per tonne. We believe this is in part due to international logistic
challenges and high costs to export; as a result we continue to supply CPO at
the factory gate which is more cost effective than export options

 

Palm Kernel Oil ('PKO') and Palm Kernel Cake ('PKC')

·    Production: the higher volume of FFB processed also drove significant
increases in November like for like monthly production of PKO and PKC compared
to last year of 71% and 68% respectively

·     Sales and Pricing: 60.6% increase in PKO prices to €930 per
tonne compared to €579 in November 2020. We are pleased to confirm our
strategy to search for new customers for PKO at higher prices is starting to
pay dividends and we have now commenced small batch regional exports of our
PKO at higher prices than achieved in November which should begin to be
reflected in our December PKO sales figures

 

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 is due to commence commissioning in December 2021.

 

 

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