TIDMDKL
RNS Number : 5700B
Dekel Agri-Vision PLC
09 October 2020
Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food
Producers
Dekel Agri-Vision Plc ('Dekel' or the 'Company')
September & Q3 2020 Palm Oil Production Update
Dekel Agri-Vision Plc, the West African focused agriculture
company, is pleased to report a production update for its
vertically integrated palm oil project at Ayenouan in Côte d'Ivoire
for September 2020 and also for the three month period ended 30
September 2020.
Crude palm oil ('CPO') production at the Company's mill at
Ayenouan increased 54% to 1,965 tonnes in September 2020 compared
to the 1,274 tonnes produced in September 2019. Following
September's strong performance, Q3 2020 saw 5,280 tonnes of CPO
produced at Ayenouan, a 10% increase on Q3 2019's 4,803 tonnes. In
addition, September 2020 saw a continuation of the recent trend of
improved global CPO pricing and higher extraction rates with CPO
prices up 38% to EUR604 per tonne (Sept 2019: EUR438 per tonne) and
extraction rates up to 21.2% (Sept 2019: 18.7%). As a result, the
Company's H2 2020 results remain on course to post a material
improvement on H2 2019.
Sep-20 Sep-19 Change Q3 2020 Q3 2019 Change
FFB processed (tonnes) 9,274 6,802 36.33% 24,243 24,665 -1.71%
CPO production (tonnes) 1,965 1,274 54.28% 5,280 4,803 9.94%
CPO Sales (tonnes) 1,977 1,465 34.92% 5,278 7,138 -26.05%
Average CPO price
per tonne EUR604 EUR438 37.96% EUR550 EUR456 20.67%
PKO production (tonnes) 149 165.10 -9.75% 422 538 -21.61%
PKO Sales (tonnes) 204 179.34 13.53% 543 819 -33.66%
Average PKO price
per tonne EUR564 EUR485 16.32% EUR568 EUR487 16.64%
PKC production (tonnes) 236 380 -37.93% 838 1,158 -27.63%
PKC Sales (tonnes) 189 424 -55.46% 764 1,459 -47.64%
Average PKC price
per tonne EUR59 EUR56 6.04% EUR60 EUR56 7.14%
Production
-- 54% increase in CPO production to 1,965 tonnes in September
2020 compared to 1,274 tonnes in September 2019
o Follows 36% increase in fresh fruit bunches ('FFB') delivered
to the mill for processing during the month compared to 2019
-- 10% increase in Q3 CPO produced to 5,280 tonnes compared to 4,803 tonnes in Q3 2019
o Follows higher extraction rates and stable FFB volumes
delivered to the mill during the quarter compared to Q3 2019 - Q3
2020 extraction rate came in at 21.2% (Q3 2019: 18.7%)
-- Palm Kernel Oil ('PKO') and Palm Kernel Cake ('PKC')
production lower in September 2020 and Q3 2020 compared to
equivalent periods in 2019
o Follows planned decrease in external nut purchases due to weak
margins
Sales and Pricing
-- 20.67% increase in CPO prices to EUR550 per tonne in Q3 2020
(Q3 2019: EUR456) offset lower volumes sold - Q3 2020: 5,278 tonnes
of CPO sold (Q3 2019: 7,138 tonnes)
-- Recovery in global CPO prices from COVID-19 lows continued in September 2020
o 37.96% increase in CPO prices in September 2020 to EUR604
compared to EUR438 in September 2019
-- Year on year PKO sales continue to remain distorted due to
807 tonnes of oil awaiting collection which are currently being
stored at Ayenouan
Dekel Agri-Vision Plc Executive Director Lincoln Moore said:
"September's excellent numbers have driven an improved set of Q3
figures in line with expectations, which in turn builds on the
material uplift in performance we reported for H1 2020. At the time
of our half year numbers, we said we expect to report a material
improvement in H2 2020 results compared to H2 2019. Today's figures
only serve to increase our confidence further.
"With the next peak palm oil harvest season due to commence in
January 2021 and the commissioning of our large scale cashew
processing project at Tiebissou expected in Q2 2021, the next few
months promise to be an exciting period for shareholders, as we
look to take a major step towards building a multi-project,
multi-commodity agriculture business."
Production Updates
The Company is issuing CPO production figures on a monthly basis
to provide shareholders with increased visibility on operations and
trading during the global COVID-19 pandemic. The Company will
continue to provide monthly data until 31 December 2020, at which
point it will consider reverting to quarterly data.
Issue of Equity
In addition, application has been made to the London Stock
Exchange for the admission of a total of 438,201 ordinary shares of
EUR0.0003367 each ("Ordinary Shares") issued to certain advisers in
settlement of fees for services provided ("Admission"). It is
expected that Admission will become effective on or around 16
October 2020. Following Admission, the Company's issued share
capital will consist of 424,651,486 Ordinary Shares.
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.
** 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
Arden Partners Plc (Nomad and Joint Broker)
Paul Shackleton / Ruari McGirr /
Dan Gee-Summons (Corporate Finance)
Simon Johnson (Corporate Broking) +44 (0) 207 614 5900
Optiva Securities Limited (Joint Broker)
Christian Dennis
Jeremy King +44 (0) 203 137 1903
St Brides Partners Ltd (Investor Relations)
Frank Buhagiar
Cosima Akerman
Megan Dennison +44 (0) 207 236 1177
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 crude
palm oil mill; a cashew processing project in Tiebissou, which is
due to commence production in Q2 2021.
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END
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October 09, 2020 02:00 ET (06:00 GMT)
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