Dekeloil Public Limited Operations Update for Producing Palm Oil Project (4634C)
January 22 2018 - 1:00AM
UK Regulatory
TIDMDKL
RNS Number : 4634C
Dekeloil Public Limited
22 January 2018
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ('MAR'). Upon the
publication of this announcement via a Regulatory Information
Service ("RIS"), this inside information is now considered to be in
the public domain.
DekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food
Producers
22 January 2018
DekelOil Public Limited ('DekelOil' or the 'Company')
Operations Update for Producing Palm Oil Project in West
Africa
DekelOil Public Limited, operator and 100% owner of the
profitable and vertically integrated Ayenouan palm oil project in
Côte d'Ivoire, is pleased to announce a positive update on its
ongoing programme to improve the productivity and profitability of
its crude palm oil ('CPO') extraction mill ('the Mill') in
readiness for the upcoming peak harvesting season which is expected
to commence imminently.
-- Installation of a second boiler for the Mill to minimise
downtime in the event of a breakdown has been completed ahead of
schedule and on budget
o Expected to lead to an increase in CPO production in 2018 as
lost production as a result of boiler issues in the 2017 high
season should be avoided going forward
o As announced in November 2016 the total capital investment for
the boiler stood at EUR1.25 million
-- 25% upgrade in the Mill's capacity to 75 tonnes per hour
('tph') from 60tph to increase the volumes of CPO produced at
Ayenouan in the peak period has been completed and testing has
proved successful
-- The additional boiler and capacity increase form part of the
Company's ongoing plan to optimise performance of the Mill, which
included the following initiatives that were completed in 2017:
o Construction of an additional 3,000t tank to increase overall
on-site CPO storage capacity to 8,000t to provide flexibility
regarding timings of the sale of CPO and enable sales prices to be
maximised
o Acquisition of an Empty Fruit Press to extract additional CPO
from empty fruit bunches
-- The team continues to develop its smallholder network to
expand the reach of collection hubs and increase Fresh Fruit Bunch
delivery to the Mill
DekelOil Executive Director Lincoln Moore said, "We continue to
make excellent progress in optimising our processing and production
capability. The installation of the second boiler and the 25%
increase in capacity at the Mill are both part of our ongoing
programme to maximise CPO production at Ayenouan, particularly
during the high season in Cote d'Ivoire which we are now entering
for 2018. These initiatives are designed to reduce downtime and
eliminate bottlenecks at the Mill so that more fruit can be
processed to produce CPO and PKO. In tandem with these Mill
improvements, we continue to work closely with local smallholders
to facilitate the delivery of fruit to the Mill via our
distribution hubs which are strategically located at sites around
our project area. We are determined to ensure all production and
logistical operations are fully optimised during the upcoming high
season."
** ENDS **
For further information please visit the Company's website or
contact:
DekelOil Public Limited
Youval Rasin
Shai Kol +44 (0) 207
Lincoln Moore 236 1177
Cantor Fitzgerald Europe
(Nomad and Broker)
Andrew Craig +44 (0) 207
Richard Salmond 894 7000
Beaufort Securities Limited
(Broker) +44 (0) 207
Elliot Hance 382 8300
Optiva Securities Limited
(Broker)
Christian Dennis +44 (0) 203
Jeremy King 137 1903
St Brides Partners Ltd (Investor
Relations) +44 (0) 207
Frank Buhagiar 236 1177
Notes:
DekelOil Public Limited is a low cost producer of palm oil in
West Africa, which it is focused on rapidly expanding. Feedstock
for the Mill comes from several co-operatives and thousands of
smallholders, however it also has nearly 1,900 hectares of its own
plantations. Furthermore, it has a world-class nursery with a 1
million seedlings a year capacity.
This information is provided by RNS
The company news service from the London Stock Exchange
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