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

Dekel Agri-VisionAnnouncement

10/10/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221010:nRSJ3079Ca&default-theme=true

RNS Number : 3079C  Dekel Agri-Vision PLC  10 October 2022

 

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

 

Dekel Agri-Vision Plc

('Dekel' or the 'Company')

September 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 a September 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 15.0% improvement in fresh fruit bunches ('FFB')
processed compared to last month and a significant improvement in crude palm
oil ('CPO') extraction rates at 21.3% compared to 19.4% last month.

·      However, CPO volumes remained low compared to September 2021
(36.3% lower), while CPO prices achieved continued at close to all-time highs
(€1,030).

·      Dekel had a successful month in terms of final equipment
installation and commissioning at the Cashew Operation, which means it is well
on track to meet the Company's 2023 objective of processing 10,000tn of raw
cashew nuts ('RCN').

 

                                               Sep-22    Sep-21  Change

 FFB processed (tonnes)                        6,074     10,393  -41.6%
 CPO Extraction Rate                           21.3%     19.6%   8.7%
 CPO production (tonnes)                       1,296     2,035   -36.3%
 CPO Sales (tonnes)                            1,076     2,046   -47.4%
 Average CPO price per tonne                   €1,030    €954    8.0%
 Palm Kernel Oil ('PKO') production (tonnes)   105       137     -23.4%
 PKO Sales (tonnes)                            53        Nil     n/a
 Average PKO price per tonne                   €1,176    n/a     n/a
 Palm Kernel Cake ('PKC') production (tonnes)  Nil       241     n/a
 PKC Sales (tonnes)                            Nil       260     n/a
 Average PKC price per tonne                   n/a       €80     n/a

 

CPO Production

·      FFB quantities improved 15.0% compared to last month but were
41.6% lower than September 2021. In early October, volumes are showing further
signs of improvement but they remain materially lower than this time last year
when record volumes were achieved.

·      The CPO extraction rate achieved of 21.3% was an excellent result
and close to a record for September, in addition to being 8.7% higher than
September 2021 aiding profit margins.

CPO and PKO Price

·      Local CPO prices achieved of €1,030 were 8.0% higher than
September 2021. International CPO prices fell below €1,000 for the first
time this year in September largely due to macro conditions but have steadied
in early October to remain around €1,000 per tonne. Importantly, there
remains excellent local demand around the €950-1,000 price range.

·      PKO prices achieved continue to be significantly higher than
average 2021 prices. Strong local and regional demand meant that local PKO
prices in September traded at a slight premium to international prices.

CPO Sales

·      47.4% lower like-for-like CPO sales quantities in September
reflect the reduction in CPO produced resulting from weak FFB volumes and our
efforts to carefully manage sales volumes where appropriate to maximise
pricing.

Cashew Operation

·      Further to the Company's announcement of 12 September 2022, the
production capacity of the Cashew Operation has materially increased and in
October should reach 75% of the level required to process 10,000tn pa.

·      The colour sorter and shelling machines mentioned in the
Company's previous monthly operational updates are operating well following
the completion of their delivery and commissioning. With the resultant
material increase in throughput, the Company is now integrating the last two
peeling machines which, when fully operational in the next few weeks, will
complete the operational value chain.

·      As processing patterns continue to stabilise, we will begin
sharing key statistical operational and production data as appropriate.

 

Lincoln Moore, Dekel's Executive Director, said: "The Cashew Operation is now
on track in terms of production capacity to reach the Company's goal of
processing 10,000 tonnes of RCN in 2023. Whilst CPO volumes remain below the
record H2 2021 results, CPO volumes are showing signs of improvement and CPO
extraction rates are relatively strong. CPO and PKO prices achieved remained
close to all-time highs which is important as we edge closer to the next high
season in early 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.

 

** 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

 Ben Good

 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.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDURRVRURURARA