REG - Dekel Agri-Vision - September Palm Oil & Q3 Cashew Operation Update

Dekel Agri-VisionAnnouncement

10/10/2023 07:00

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RNS Number : 4812P  Dekel Agri-Vision PLC  10 October 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')

September Palm Oil Production & Q3 2023 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 its Q3 2023 production for the Ayenouan palm oil project in Côte
d'Ivoire ('Palm Oil Operation') and the cashew processing plant at Tiebissou,
Côte d'Ivoire (the 'Cashew Operation').

 

Palm Oil Operation Update

·      The Palm Oil Operation continued to deliver strong volumes during
Q3 2023 with Fresh Fruit Bunch ('FFB') volumes and Crude Palm Oil ('CPO')
production increasing 90.7% and 78.4% respectively compared to Q3 2022.  This
was also our 7(th) successive month of significantly higher production
compared to 2022.

·      CPO sales quantities increased 192.4% in Q3 2023 compared to last
year.  A large portion of the higher than normal CPO inventory at the end of
H1 2023 (due to the late high season), has now been successfully sold and
inventory levels have normalised.

·      The Q3 2023 average CPO sales price achieved was €817 per
tonne, a 20.1% decrease from the record Q3 2023 CPO sales prices.  The local
CPO price in September 2023 increased slightly to €822 per tonne despite
some softening of the international CPO price from c.€900 per tonne to
c.€850 per tonne as local stock levels start to tighten following the strong
production high season.

·      The CPO extraction rate for Q3 2023 of 19.3% was slightly lower
than Q3 2022, albeit we saw an improvement in the extraction rate in September
to 19.8%.

·      Overall, largely due to the 192.2% increase in CPO sales volumes
in Q3 2023 compared to Q3 2022, we maintain overview our guidance that H2 2023
is well positioned to materially outperform H2 2022.

 

                                              Sept-23  Sept-22   Change  Q3-2023  Q3-2022   Change

 FFB processed (tonnes)                       10,866   6,074     78.9%   30,084   15,777    90.7%
 CPO Extraction Rate                          19.8%    21.3%     -7.0%   19.3%    20.6%     -6.3%
 CPO production (tonnes)                      2,149    1,296     65.8%   5,797    3,249     78.4%
 CPO Sales (tonnes)                           2,734    1,076     154.1%  10,143   3,471     192.2%
 Average CPO price per tonne                  €822     €1,030    -20.2%  817      1,022     -20.1%
 Palm Kernel Oil ('PKO') production (tonnes)  97       105       -7.6%   489      286       71.0%
 PKO Sales (tonnes)                           105      53        98.1%   1,463    464       215.3%
 Average PKO price per tonne                  €838     €1,176    -28.7%  €783     €1,372    -42.9%

 

Cashew Operation Update

·      The volume of Raw Cashew Nut ('RCN') processed in Q3 2023
increased 134.5% compared to Q2 2023.  This was due to gradual improvements
in the production value chain and less operational interruption following the
successful completion of the BRC Global Food standard assessment which took
place in Q2 2023.

·      Whilst we have seen improvements in daily processing levels, the
performance of various items of equipment provided by our Italian supplier
remain below technical specifications, most notably the peeling and shelling
machinery.  We have taken further actions to supplement the Italian equipment
including ordering additional shelling machines from an external party which
are expected to be installed in November 2023.  We have successfully used
these alternate shelling machines when initially awaiting delayed equipment
from the Italian supplier and the installation of these machines should drive
a further a material increase in processing volumes.

·      The other main value drivers of the Cashew Operation including
the price of Raw Cashew Nut ('RCN'), the Cashew extraction rate and sales
prices are delivering in line with expectations.

 

                                 Q3-2023

 RCN Inventory
 Opening RCN Inventory (tonnes)  2,460
 RCN Purchased (tonnes)          41
 RCN Processed (tonnes)          530
 Closing RCN Inventory (tonnes)  1,971

 Cashew Processing
 Opening Cashews (tonnes)        118
 RCN Processed (tonnes)          530
 Cashew Extraction Rate          22.4%
 Cashew Produced (tonnes)        119
 Cashew Sales (tonnes)           35
 Closing Cashews (tonnes)        202

 Average Sales prices per tonne
 -       Unpeeled Cashews        €3,300
 -       Peeled Cashews          €4,500

 

Lincoln Moore, Dekel's Executive Director, said: "A 192% increase in Q3 CPO
sales volumes compared to Q3 2022 has kicked off a very strong start to the H2
2023 financial performance of the Palm Oil Operation which is performing at
close to record levels."

 

"It is pleasing to see a 134% increasing in the Cashew Operation processing
rate compared to Q2 2023 and we are taking further measures to drive the next
step up in production volumes over the coming months as we strive to enhance
production volumes and deliver positive operating cashflow from the Cashew
Operation."

 

 

** 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

 Isaac Hooper

 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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