TIDMDKL
RNS Number : 7493E
Dekel Agri-Vision PLC
10 November 2020
Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food
Producers
Dekel Agri-Vision Plc ('Dekel' or the 'Company')
October Palm Oil Production Update
Dekel Agri-Vision Plc, the West African focused agriculture
company, is pleased to report a production update for its
100%-owned, vertically integrated palm oil project at Ayenouan in
Côte d'Ivoire for October 2020. Crude palm oil ('CPO') produced and
sale prices achieved at Ayenouan in October 2020 increased 19% and
28% to 1,818 tonnes and EUR636 per tonne respectively compared to
1,528 tonnes and EUR495 per tonne in October 2019. The excellent
October 2020 numbers build on a strong Q3 2020 performance compared
to last year and as a result, keep the Company on track to post a
material second half improvement compared to H2 2019.
Oct-20 Oct-19 Change
FFB processed (tonnes) 9,350 8,118 15.18%
CPO production (tonnes) 1,818 1,528 18.98%
CPO Sales (tonnes) 1,843 1,319 39.73%
Average CPO price per
tonne EUR 636 EUR 495 28.48%
PKO production (tonnes) 129 150 -14.00%
PKO Sales (tonnes) 251 nil na
Average PKO price per
tonne EUR 564 EUR 0 na
PKC production (tonnes) 196 255 -23.14%
PKC Sales (tonnes) 47 274 -82.85%
Average PKC price per
tonne EUR 61 EUR 58 5.72%
Production
-- 19% increase in CPO production to 1,818 tonnes in October
2020 compared to 1,528 tonnes in October 2019 follows:
o 15% increase in fresh fruit bunches ('FFB') delivered to the
mill for processing compared to October 2019
o Higher extraction rates than in October last year due to
higher oil content in FFB
-- Lower levels of kernel purchases from other mills in the area
in response to weak pricing resulted in lower Palm Kernel Oil
('PKO') and Palm Kernel Cake ('PKC') production in October 2020
compared to October 2019
Sales and Pricing
-- 28% increase in CPO prices achieved to EUR636 per tonne
(October 2019: EUR495) and 40% increase in CPO sales to 1,843
tonnes (October 2019: 1,319 tonnes)
o Strong pricing and sales performance as a result of restocking
by key buying nations in Asia such as China post COVID lockdowns
and low levels of stock in major producing countries such as
Malaysia which is now entering its low season
-- Palm oil currently continues to demonstrate a strong
resilience during the pandemic which Dekel believes is due to palm
oil's widespread use in everyday essential products
o CPO prices have continued to strengthen in the last two weeks
and are currently trading at over US$800 per tonne from around
US$750
o Should current levels hold, these will likely be reflected in
local pricing in the coming months which coincide with the
commencement of the 2021 high season
-- Local PKO prices have been weak reflecting low international
prices, however the international price has increased over 25% in
the past few weeks
o Current international PKO prices are trading at approximately
US$1,000 per tonne which should also start to flow through to local
prices in the coming months
-- PKO sales of 251 tonnes exceeded PKO production of 129 tonnes
due to collection of previously sold oil that was being stored at
Ayenouan
Dekel Agri-Vision Plc Executive Director Lincoln Moore said: "We
remain on course to report a substantial uplift in the Company's
second half results compared to H2 2019 which, when combined with
the stronger year on year H1 performance, bodes well for our FY
2020 numbers meeting market expectations.
"International prices have continued to strengthen in the last
few weeks as stock levels in the main producing countries remain
tight and key buying countries such as China continue to restock
following COVID-induced lockdowns. We are therefore cautiously
optimistic that, despite the ongoing global pandemic, this highly
supportive pricing environment will persist in the months ahead
and, importantly, will provide supportive trading conditions during
the upcoming peak harvest season in Cote d'Ivoire.
"Typically running from mid January to mid June, 2021's peak
palm fruit harvest season is expected to coincide with the
commencement of operations at our second producing asset, the
Tiebissou cashew processing project, in which we recently secured a
controlling interest on what the Directors believe to be value
accretive terms. We are entering a pivotal period in Dekel's
development which will see the Company become a multi-project,
multi-commodity agriculture company focused on West Africa and with
this in mind, I look forward to providing further updates on our
progress."
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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