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

Dekel Agri-VisionAnnouncement

10/11/2023 07:00

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RNS Number : 0051T  Dekel Agri-Vision PLC  10 November 2023

 

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 October 2023

 

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

 

Dekel Agri-Vision Plc

('Dekel' or the 'Company')

October 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 an October 2023 monthly production update for its Ayenouan palm oil
project in Côte d'Ivoire ('Palm Oil Operation').

 

Key Highlights

·      The Palm Oil Operation continued its 8 month trend of higher like
for like production in October 2023 compared to October 2022 recording
increases in Crude Palm Oil ('CPO') and Palm Kernel Oil ('PKO') production of
2.8% and 14.5% respectively.  Early guidance for November 2023 shows CPO
production is likely to be materially higher than November last year as we
appear to be experiencing another uplift in production over the past 10 days.

·      Like for like October 2023 CPO sales volumes were 5.4% lower
compared to last year following a significant period of strong sales from July
to September 2023 resulting in inventory levels normalising.

·      CPO sales prices in October decreased from €822 per tonne last
month to €788 per tonne.  Local CPO prices are still trading slightly below
international CPO prices which also softened slightly trading around €825-
850 per tonne in October 2023.

·      The CPO extraction rate was relatively low at 19.4%, however,
early November extraction rates have materially increased over the past 10
days together with CPO production volumes.

 

                                              Oct-23  Oct-22    Change

 FFB processed (tonnes)                       8,886   7,661     16.0%
 CPO Extraction Rate                          19.4%   21.8%     -11.0%
 CPO production (tonnes)                      1,723   1,677     2.8%
 CPO Sales (tonnes)                           1,483   1,567     -5.4%
 Average CPO price per tonne                  €788    €1,057    -25.5%
 Palm Kernel Oil ('PKO') production (tonnes)  150     131       14.5%
 PKO Sales (tonnes)                           199     225       -11.6%
 Average PKO price per tonne                  €838    €1,151    -27.2%

 

Lincoln Moore, Dekel's Executive Director, said: "With two months left in 2023
and a strong start to November, the Palm Oil Operation remains well on track
to exceed CPO production, Revenue and EBITDA compared to 2022 and we look
forward to reporting a strong finish to the year."

 

 

** 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

 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 in 2023.

 

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