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REG-R.E.A. Holdings plc R.E.A. Holdings plc: change to board of directors and trading update <Origin Href="QuoteRef">REAH.L</Origin>

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   R.E.A. Holdings plc (RE.)
   R.E.A. Holdings plc: change to board of directors and trading update

   21-Feb-2017 / 07:00 GMT/BST
   Dissemination of a Regulatory Announcement that contains inside
   information according to REGULATION (EU) No 596/2014 (MAR), transmitted by
   EQS Group.
   The issuer is solely responsible for the content of this announcement.

   ══════════════════════════════════════════════════════════════════════════

   R.E.A. Holdings plc ('REA' or the 'company')

   Change to board of directors and trading update

   Management

   The directors of REA announce that on 20 February 2017 they accepted the
   resignation of Mark Parry as managing director of the company and his
   resignation as president director of PT REA Kaltim Plantations ('REAK'),
   REA's principal operating subsidiary in Indonesia, with immediate effect.
   Mark has also resigned from all other directorships and employment he
   holds with REA's subsidiaries. Whilst Mark's board appointments ended with
   effect from 20 February 2017, his employment with REA's Singapore
   subsidiary will continue until 20 May 2017.

   Mark decided to offer his resignation following concerns expressed by the
   authorities in East Kalimantan, Indonesia, that Mark, in his position as
   president director of REAK, might have undertaken various tasks that were
   outside the scope of his work permits. The tasks in question involved
   matters relating to human resources and personnel management (which are
   reserved by Indonesian law to Indonesian nationals) and conducting
   business at group locations not specifically covered by the work permits.

   The directors of both REA and REAK would like to thank Mark for his work
   over the past five years and his many achievements, particularly in the
   areas of new planting and developing good working relations with local
   villages. The directors would also like to take this opportunity to wish
   Mark well in his future endeavours.

   As a result of Mark's decision, the directors of REA have appointed Carol
   Gysin as managing director of REA, based in London. Carol has worked for
   REA for the last eight years as group company secretary and is a Fellow of
   the Institute of Chartered Secretaries and Administrators.

   In addition, the shareholders of REAK intend to appoint George Kapitan as
   president director of REAK. George, who is an Indonesian citizen, is
   currently chairman of the board of commissioners of REAK but will
   relinquish that position on his appointment as president director of REAK.
   It is intended that David Blackett, chairman of REA, be appointed as
   chairman of REAK's board of commissioners in his place.

   The directors of REA are confident that the group management team already
   in place will be able to continue the operations and planned development
   of the group without loss of momentum.

   Agricultural operations

   Key agricultural statistics for the year to 31 December 2016 (with
   restated comparative figures for the corresponding period of 2015) were as
   follows:

   ┌────────────────────────────────┬─────────┬─────────┐
   │                                │ 2016    │ 2015*   │
   ├────────────────────────────────┼─────────┼─────────┤
   │ FFB crops (tonnes):            │         │         │
   ├────────────────────────────────┼─────────┼─────────┤
   │ Group harvested                │ 468,371 │ 600,741 │
   ├────────────────────────────────┼─────────┼─────────┤
   │ Third party harvested          │ 98,052  │ 138,657 │
   ├────────────────────────────────┼─────────┼─────────┤
   │ Total                          │ 566,423 │ 739,398 │
   ├────────────────────────────────┼─────────┼─────────┤
   │                                │         │         │
   ├────────────────────────────────┼─────────┼─────────┤
   │ Production (tonnes):           │         │         │
   ├────────────────────────────────┼─────────┼─────────┤
   │ Total FFB processed            │ 560,957 │ 728,871 │
   ├────────────────────────────────┼─────────┼─────────┤
   │ CPO                            │ 127,697 │ 161,844 │
   ├────────────────────────────────┼─────────┼─────────┤
   │ Palm kernels                   │ 26,371  │ 33,877  │
   ├────────────────────────────────┼─────────┼─────────┤
   │ CPKO                           │ 9,840   │ 12,557  │
   ├────────────────────────────────┼─────────┼─────────┤
   │                                │         │         │
   ├────────────────────────────────┼─────────┼─────────┤
   │ Extraction rates (percentage): │         │         │
   ├────────────────────────────────┼─────────┼─────────┤
   │ CPO                            │ 22.8    │ 22.2    │
   ├────────────────────────────────┼─────────┼─────────┤
   │ Palm kernel                    │ 4.7     │ 4.7     │
   ├────────────────────────────────┼─────────┼─────────┤
   │ CPKO                           │ 34.7    │ 35.0    │
   ├────────────────────────────────┼─────────┼─────────┤
   │                                │         │         │
   ├────────────────────────────────┼─────────┼─────────┤
   │ Rainfall (mm):                 │         │         │
   ├────────────────────────────────┼─────────┼─────────┤
   │ Average across the estates     │ 3,449   │ 2,141   │
   └────────────────────────────────┴─────────┴─────────┘

    

   * The 2015 comparative figures have been restated as the new information
   system that was implemented in 2015 allows for data collection in real
   time so that operational statistics can be reported on an actual month
   basis

   As previously reported, the severe dry periods experienced in both 2014
   and 2015 had a significant negative impact on the group's crop production
   in 2016, alongside that of other oil palm plantations in East Kalimantan
   and a number of other areas of South East Asia. Cropping rates started to
   recover from September onwards, but unusually heavy rainfall in November
   and December disrupted collection, which meant that production in the
   final months of the year fell short of crop availability as not all crop
   could be harvested.

   With promising bunch formation in the field, the appointment of a new
   agronomy consultant at the beginning of 2017 and work now underway to
   strengthen the group's road infrastructure, the directors are optimistic
   that monthly production will start to accelerate.

   The CPO price, CIF Rotterdam, edged steadily upwards through 2016 from an
   opening price of $570 per tonne to close at $801 per tonne and has traded
   in a range between $770 and $860 per tonne since the beginning of 2017. It
   is widely expected that prices will remain around current levels at least
   for the first half of 2017. Beyond that much depends upon soya crops but
   with CPO stocks depleted as a result of the poor 2016 harvest, there is a
   reasonable expectation that prices will continue at remunerative levels
   through the second half of 2017.

   Good progress was made with the group's extension planting programme in
   2016.
   Cumulative development for the year is detailed below:

   ┌────────────────────────────────────────────┬─────────┐
   │ Hectares                                   │ 2016    │
   ├────────────────────────────────────────────┼─────────┤
   │ Cleared, not yet planted at 1 January 2016 │ 2,700   │
   ├────────────────────────────────────────────┼─────────┤
   │ Cleared during the period                  │ 4,600   │
   ├────────────────────────────────────────────┼─────────┤
   │ Cleared, not yet planted at end of period  │ (1,600) │
   ├────────────────────────────────────────────┼─────────┤
   │ Planted during the period                  │ 5,700   │
   └────────────────────────────────────────────┴─────────┘

    

   Clearing and planting are continuing at a good rate.

   Stone and coal operations

   The group is moving towards implementation of its previously announced
   plans to purchase crushed stone from a third party contractor who would
   extract the stone from a limestone quarry located near the PT Putra Bongan
   Jaya ('PBJ') property and then crush the stone on a site within the PBJ
   property. The resultant crushed stone will be utilised for hardening roads
   on PBJ and for sale to third parties as well as potentially to other group
   companies.

   Arrangements for the resumption of coal mining at the group's PT Indo
   Pancadasa Agrotama ('IPA') concession near Kota Bangun are well advanced
   and a new contractor will be selected from a short list in the near
   future. Following a limited period for rehabilitation of the mine, it is
   intended that coal production will resume. The agreement that is already
   in place will provide for a steady cash inflow to the group based upon
   prevailing coal prices but with an agreed floor.

   Outlook and publication of results

   Production and the group's expansion programme are expected to make steady
   progress in 2017, with the benefit of improvements to operational
   infrastructure and efficiencies as well as stable CPO prices.

   In line with the timetable adopted in previous years, it is expected that
   the final results for 2016 will be announced, and the annual report in
   respect of 2016 published, at the end of April 2017.

   Enquiries:
   R.E.A Holdings plc
   Tel: 020 7436 7877

    

   ══════════════════════════════════════════════════════════════════════════

   Language:      English
   ISIN:          GB0002349065
   Category Code: STR - Change to board of directors and trading update
   TIDM:          RE.
   LEI Code:      213800YXL94R94RYG150
   Sequence No.:  3867


    
   End of Announcement EQS News Service


   545831  21-Feb-2017 

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