TIDMDKL
RNS Number : 1414J
Dekel Agri-Vision PLC
09 December 2022
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.
Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food
Producers
Dekel Agri-Vision Plc
('Dekel' or the 'Company')
November 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 November 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 Highlight s
-- November 2022 Crude Palm Oil ('CPO') production was slightly
lower compared to last month. This is in line with historical
trends during this period of the year but 42.5% lower than the
unusually high November 2021 CPO production.
-- CPO prices remain very strong with prices achieved continuing
to be close to all-time highs (EUR1,043 per tonne). International
CPO prices remain robust trading between EUR1,025 - 1,075 per
tonne.
-- The Cashew Operation capacity continued to steadily improve
in November and is well on track to meet the Company's 2023
objective of processing capacity of 10,000tn of raw cashew nuts
('RCN').
-- European feedback following a customer roadshow in Rotterdam
has been very positive. In particular, the high quality of Dekel's
product has been well noted and significant buyer interest was
obtained for 2023 production.
Nov-22 Nov-21 Change
FFB processed (tonnes) 7,361 13,181 -44.2%
CPO Extraction Rate 20.9% 20.2% 3.5%
CPO production (tonnes) 1,535 2,669 -42.5%
CPO Sales (tonnes) 1,788 1,837 -2.7%
Average CPO price per tonne EUR1,043 EUR956 9.1%
Palm Kernel Oil ('PKO')
production (tonnes) 90 212 -57.5%
PKO Sales (tonnes) Nil 106 n/a
Average PKO price per tonne n/a EUR930 n/a
Palm Kernel Cake ('PKC')
production (tonnes) Nil 298 n/a
PKC Sales (tonnes) Nil 304 n/a
Average PKC price per tonne n/a EUR80 n/a
CPO Production
-- CPO volumes were slightly lower than last month which is
typical historically for this time of the year, however CPO volumes
were 42.5% lower than the unusually high volumes in November
2021.
-- Given the weak production throughout Côte d'Ivoire,
competition has been stronger than normal for fresh fruit bunches
('FFB') however this has largely been offset by strong CPO
extraction rates and sales prices.
-- The CPO extraction rate achieved in November 2022 of 20.9%
remained strong for a low season month, in addition to being 3.5%
higher than November 2021.
CPO Price
-- Local CPO prices achieved of EUR1,043 were 9.1% higher than
November 2021. International CPO prices remain strong and are
currently trading at EUR1,025 -1,075 per tonne.
CPO Sales
-- November 2022 saw strong CPO sales volumes relative to
production which together with continued strong prices resulted in
monthly revenue just below November 2021 despite the weak
production.
-- Local CPO sales demand remains strong. This is clearly partly
due to the weak local production this year and the Company expects
demand to remain strong during the upcoming high season where local
refineries will be keen to replenish their low CPO stock
levels.
-- PKO and PKC sales are being held to sell in larger batches to
maximise prices therefore there were no sales in November.
Cashew Operation
-- Further to the Company's announcement on 10 October 2022, the
production capacity is tracking well to meet the goal of operating
capacity of 10,000tn in 2023. We have been replenishing our stock
and currently hold c.1,750tn of RCN. Dekel will also be actively
buying stock during the cashew season which runs between February
to June each year to fulfil the 2023 production objectives.
-- Following the successful first export shipment of cashew last
month, we undertook a buyers roadshow in Rotterdam during November.
Potential buyers have been very positive regarding the quality of
our product which positions us well to maximise our sales prices as
we transition into full scale commercial production in 2023.
Lincoln Moore, Dekel 's Executive Director , said: "We look
forward to the coming few months. In terms of the Palm Oil
Operation, we are optimistic that CPO prices will remain well above
long term averages and the local market is hopeful we will see an
improvement in high season volumes which sets up the Palm Oil
Operation for a strong H1 2023. The Cashew Operation is shaping up
well and we are well set to see a material contribution from this
operation also in H1 2023."
** ENDS **
For further information, please visit the Company's website
www.dekelagrivision.com or contact:
Dekel Agri-Vision Plc
Youval Rasin
Shai Kol
Lincoln Moore +44 (0) 207 236 1177
WH Ireland Ltd (Nomad and Joint Broker)
James Joyce
Megan Liddell +44 (0) 20 7220 1666
Optiva Securities Limited (Joint Broker)
Christian Dennis
Daniel Ingram +44 (0) 203 137 1903
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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END
DRLUWAARUNUURUA
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December 09, 2022 02:00 ET (07:00 GMT)
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