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

Dekel Agri-VisionAnnouncement

10/11/2022 07:01

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RNS Number : 8821F  Dekel Agri-Vision PLC  10 November 2022

 

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

 

Dekel Agri-Vision Plc

('Dekel' or the 'Company')

October 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 an October 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

·      Dekel achieved a 26.1% improvement in fresh fruit bunches ('FFB')
processed as compared to last month and a further improvement in crude palm
oil ('CPO') extraction rates to 21.8% as compared to 21.3% last month.

·      However, like for like monthly CPO production volumes remained
low compared to the October 2021 record monthly production of 2,331tns (28.1%
lower).

·      CPO prices remain very strong with prices achieved continuing at
close to all-time highs (€1,057 per tonne).  International CPO prices
increased materially during October from around €950 per tonne to €1,100 -
1,150 per tonne.

·      The Cashew Operation capacity increased significantly during
October and is well on track to meet the Company's 2023 objective of
processing 10,000tn of raw cashew nuts ('RCN').

·      First cashew export container shipment to Europe of 16 tonnes was
completed in late October at an average price of approximately €4,900 per
tonne.

 

 

                                               Oct-22    Oct-21  Change

 FFB processed (tonnes)                        7,661     11,603  -34.0%
 CPO Extraction Rate                           21.8%     20.1%   8.5%
 CPO production (tonnes)                       1,677     2,331   -28.1%
 CPO Sales (tonnes)                            1,567     2,301   -31.9%
 Average CPO price per tonne                   €1,057    €960    10.1%
 Palm Kernel Oil ('PKO') production (tonnes)   131       136     -3.7%
 PKO Sales (tonnes)                            225       149     51.0%
 Average PKO price per tonne                   €1,151    €946    21.7%
 Palm Kernel Cake ('PKC') production (tonnes)  Nil       221     n/a
 PKC Sales (tonnes)                            Nil       24      n/a
 Average PKC price per tonne                   n/a       €80     n/a

 

CPO Production

·      FFB quantities improved 26.1% compared to last month, however
volumes were 34.0% lower than October 2021. Volumes appear to be gradually
improving towards long terms averages but they remain materially lower than
this time last year when record volumes were achieved.

·      The CPO extraction rate achieved in October of 21.8% is very
strong for a low season month, in addition to being 8.5% higher than October
2021.

CPO and PKO Price

·      Local CPO prices achieved of €1,057 were 10.1% higher than
September 2021. International CPO prices increased materially during October
and are currently trading at €1,100 -1,150 per tonne.

CPO Sales

·      31.9% lower like-for-like CPO sales quantities in October reflect
the reduction in CPO produced resulting from weak FFB volumes and our
continued efforts to carefully manage sales volumes where appropriate to
maximise pricing.

Cashew Operation

·      Further to the Company's announcement on 10 October 2022, the
production capacity of the Cashew Operation has materially increased and is
tracking well to meet our goal of processing 10,000tn in 2023.

·      We exported our first container of cashews to Europe consisting
of 16 tonnes at an average price of c.€4.9kg with whole cashews priced at
€5.8kg.  This a profitable price for our first shipment and we expect our
sales prices may increase further as we become a reliable, sustainable, high
quality producer.

 

Lincoln Moore, Dekel's Executive Director, said: "We believe we are entering
an exciting period in terms of potential revenue and profit up lift. With the
palm oil operation high season only 90 days away it is pleasing to see signs
of gradual normalisation of FFB levels.  Given the continued high CPO prices
there is the potential for an exceptional period of profitability during H1
2023 if normalised FFB levels are achieved.  In addition, the Cashew
Operation is well poised to add additional profit to the Group as production
continues to ramp up."

 

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.

 

** 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 commenced production in early January 2022.

 

 

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