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

Dekel Agri-VisionAnnouncement

11/10/2024 07:00

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RNS Number : 6988H  Dekel Agri-Vision PLC  11 October 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')

September Palm Oil Production & Q3 2024 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 2024 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 its steady production
performance during Q3 2024 although both Fresh Fruit Bunch ('FFB') volumes and
Crude Palm Oil ('CPO') production were slightly lower by 10.2% and 7.5%
respectively compared to Q3 2023.

·      The CPO extraction rate for Q3 2024 of 19.9% was slightly higher
than Q3 2023 continuing the trend of relatively strong CPO extraction rates
achieved during 2024.

·      The decrease in CPO sales quantities was largely a timing issue
due to last year's high season arriving much later than usual, leading to
abnormally high CPO sales levels in Q3 2023.

·      The Q3 2024 average CPO sales price of €777 per tonne continued
its gradual increase during 2024, albeit slightly lower than the 2023 CPO
sales price of €817 per tonne. International CPO prices continue to remain
strong at around €950 per tonne providing a foundation for the continued
solid financial performance from the Palm Oil Operation.

·      PKO sale prices which are driven by more localised supply and
demand dynamics increased materially during Q3 2024 compared to earlier this
year and were 8.9% higher than Q3 2023.

 

                                              Q3-2024  Q3-2023  Change

 FFB processed (tonnes)                       27,017   30,084   -10.2%
 CPO Extraction Rate                          19.9%    19.3%    3.1%
 CPO production (tonnes)                      5,364    5,797    -7.5%
 CPO Sales (tonnes)                           6,471    10,143   -36.2%
 Average CPO price per tonne                  €777     €817     -4.9%
 Palm Kernel Oil ('PKO') production (tonnes)  475      489      -2.9%
 PKO Sales (tonnes)                           427      1,463    -70.8%
 Average PKO price per tonne                  €853     €783     8.9%

 

Cashew Operation Update

·      The Cashew Operation continued to operate on a conservative basis
while we awaited the arrival of the new shelling and peeling equipment.

·      All new shelling and peeling equipment ordered arrived on site by
late September.  This equipment has now been installed and testing has
commenced.

·      Commissioning of new equipment is being overseen by a highly
credentialled cashew processing consultant.

·      We expect to see a significant improvement in daily production
capabilities and quality over the coming weeks and we will advise the market
once we see this equipment is performing successfully.

·      Cashew sales prices improved as highlighted in the unaudited
interim results for the six months ended 30 June 2024 announcement dated 25
September 2024 with prices rising over 30% since Q1 2024.

 

                                                       Q3-2024   Q3-2023

 RCN Inventory
 Opening RCN Inventory (tonnes)                        1,582     2,460
 RCN Purchased (tonnes)                                Nil       41
 RCN Processed (tonnes)                                (365)     (530)
 Closing RCN Inventory (tonnes)                        1,217     1,971

 Cashew Processing
 Opening Cashews (tonnes)                              54        118
 RCN Processed (tonnes)                                365       530
 Cashew Extraction Rate                                21.6%     22.4%
 Cashew Produced (tonnes)                              79        119
 Cashew Sales (tonnes)                                 58        35
 Closing Cashews (tonnes)                              75        202

 Average Sales prices per tonne
 -       Whole Unpeeled Cashews                        €3,600    €3,300
 -       Whole Peeled Cashews (including mixed)        €4,600    €4,500

 

Lincoln Moore, Dekel's Executive Director, said: "The Palm Oil Operation
continued its consistent performance during 2024.  With CPO prices remaining
very supportive we are tracking well for another year of profitability.  With
all the Cashew Operation new equipment installed, a significant focus of the
Group is now on completing the necessary testing so we can increase production
quantity and quality as quickly as possible and we are hopeful we can announce
the successful implementation of the new shelling and peeling equipment to the
market over the coming weeks".

 

 

** 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

 Zues Capital Ltd (Nomad and Joint Broker)  +44 (0) 203 829 5000

 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.

 

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