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

Dekel Agri-VisionAnnouncement

11/11/2024 07:00

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RNS Number : 6150L  Dekel Agri-Vision PLC  11 November 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.

 

11 October 2024

 

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 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 an October production update for its Ayenouan palm oil project in
Côte d'Ivoire ('Palm Oil Operation') as well as a positive progress update
regarding the performance of the new shelling and peeling equipment at the
cashew processing plant at Tiebissou, Côte d'Ivoire (the 'Cashew Operation').

 

Key Highlights - Palm Oil Operation

·      The Palm Oil Operation low season has lingered longer than normal
resulting in a decrease in Crude Palm Oil ('CPO') production of 17.9% in
October 2024 compared to October 2023.

·      The CPO extraction rate was slightly higher in October 2024
compared to October 2023.  As we exit the low season, we expect CPO
extraction rate to trend higher.

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

·      CPO sales prices remained steady at €775 per tonne in October
2024 and continue to be historically high.  International CPO prices
increased during October 2024 to over €1,050 per tonne.  We are seeing this
flow through to our November pre sales and we expect to report a material
increase in our CPO sales prices for November 2024.

 

                                              Oct-24  Oct-23  Change

 FFB processed (tonnes)                       7,251   8,886   -18.4%
 CPO Extraction Rate                          19.5%   19.4%   0.5%
 CPO production (tonnes)                      1,415   1,723   -17.9%
 CPO Sales (tonnes)                           1,110   1,483   -25.2%
 Average CPO price per tonne                  €775    €788    -1.6%
 Palm Kernel Oil ('PKO') production (tonnes)  96      150     -36.0%
 PKO Sales (tonnes)                           126     199     -36.7%
 Average PKO price per tonne                  €853    €838    1.8%

 

Key Highlights - Cashew Operation

 

·      As reported on 10 October 2024, all new shelling and peeling
equipment had been installed and testing had commenced.

·      We are pleased to report that the new equipment is working
well.  We have seen improvements in key KPI's including:

o  Peeling rates have increased from 55% to 80% for all grades of cashews

o  Whole vs broken rates have increased from 70% to 90% for all grades of
cashews

o  Daily Raw Cashew nut processing rates have increased from 6 tonnes to over
10 tonnes per day

·      With the new cashew equipment in good order, we will continue to
increase the daily production levels over the coming weeks and test the
equipment at 20 tonnes per day.

·      The improvements in processing are also enhancing the quality of
our mix of cash products which is adding to the recent improvement in our
overall sales prices.

·      As a result, we expect to report an improvement in cashew results
in the Q4 2024 report compared to Q4 2023.  In addition, based on the current
positive progress, the Cashew Operation is tracking well to become
operationally cashflow positive from December 2024.

 

Lincoln Moore, Dekel's Executive Director, said: "Higher international CPO
prices are starting to flow through to local CPO prices which should become
apparent in our November monthly CPO results.  Although the CPO low
production season has lingered longer than normal, these higher prices should
be supportive for the upcoming high season.  The Cashew Operation has taken a
great step forward over the past month with material improvements in all key
KPI's related to product quantities, quality and sales prices.  We will look
to consolidate on this improvement as we complete 2024 and the Cashew
Operation is now poised to become a profit contributor to the Group along with
the Palm Oil Operation as we enter 2025."

 

 

** 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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