TIDMDKL
RNS Number : 7153R
Dekel Agri-Vision PLC
10 March 2021
Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food
Producers
Dekel Agri-Vision Plc ('Dekel' or the 'Company')
February Palm Oil Production 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 February production
update for its 100%-owned Ayenouan palm oil project in Côte
d'Ivoire ('Ayenouan' or the 'Project').
Highlight s
-- February represents a sixth consecutive month of double-digit
increases in monthly crude palm oil (CPO) production, sales and
prices compared with the same month last year:
o 43% increase in CPO production to 5,163 tonnes
o 36% increase in CPO sales to 4,754 tonnes
o 17% increase in average realised prices to EUR792 per
tonne
-- Strong margins currently being generated at Ayenouan as a
result of international CPO prices trading at near 10-year highs in
a band between EUR850-900 per tonne
-- Peak harvest season currently underway and Dekel is
increasingly confident that 2021 yields will be higher than
2020
Lincoln Moore, Dekel 's Executive Director , said: " W e have
made a terrific start to the financial year due to a combination of
global prices trading at multi-year highs and a strong start to the
peak harvest season. In addition, the construction of the
large-scale cashew project at Tiebissou is advancing well.
Commissioning is currently scheduled for June 2021 , and we expect
as this operation settles, it will drive a further step up in
financial performance over the next 12-24 months. We believe this
is an exciting period for shareholders as we see our growth
strategy come to fruition."
Feb 2021 Feb 2020 Change
FFB processed (tonnes) 23,638 16,547 42.85 %
CPO production (tonnes) 5,163 3,615 42.82 %
CPO sales (tonnes) 4,754 3,501 35.79 %
Average CPO price/tonne EUR 792 EUR 676 17.16%
PKO production (tonnes) 270 210 28.57 %
PKO sales (tonnes) 406 nil n/a
Average PKO price/tonne EUR 778 nil n/a
PKC production (tonnes) 390 336 16.07 %
PKC sales (tonnes) 299 307 -2.61 %
Average PKC price/tonne EUR 69 EUR 65 6.15%
Crude Palm Oil Production
-- 43% increase in CPO production in February compared to
February 2020 builds on strong January performance during which
production grew 52% compared to January 2020
-- February production driven by 43% increase in fresh fruit
bunches ('FFB') delivered to the mill for processing compared to
February 2020
-- Peak harvest season in Côte d'Ivoire is currently underway
and Dekel is increasingly confident that 2021 yields will be higher
than 2020
-- CPO extraction rate of 21.8% achieved - in line with February 2020
CPO Pricing and Sales
-- 17% increase in average realised CPO prices to EUR792 per
tonne (February 2020: EUR676) and 36% increase in CPO sales to
4,754 tonnes (February 2020: 3,501 tonnes)
-- Strong margins currently being generated at Ayenouan as a
result of international CPO prices trading at near 10-year highs in
a band between EUR850-900 per tonne - approximately 100% higher
than Q2 2020's pandemic-induced lows
-- Local industry initiative currently in place, and supported
by Dekel, to shield the local population partially from current
very high global prices for CPO, a vital food source in Côte
d'Ivoire. This is being achieved by smoothing out prices around
EUR800 per tonne. The intention is that local prices will hold
around this level even if international prices soften in the months
ahead below the EUR800 mark. Critically, the directors believe this
means Dekel has now potentially locked in very high prices for the
remainder of the high season and possibly beyond.
Palm Kernel Oil ('PKO') Production and Sales
-- 29% increase in Palm Kernel Oil ('PKO') and 16% increase in
Palm Kernel Cake ('PKC') production to 270 and 390 tonnes
respectively in February 2021 compared to February 2020 due to
higher FFB volumes
-- PKO sales exceeded production as Dekel capitalised on rising
local PKO price levels to sell stock held in tanks during January
at a pricing level 17% higher than achieved in January
-- Dekel continues to assess export opportunities to achieve even higher PKO prices
Production Updates
The Company will continue issuing CPO production figures on a
monthly basis to provide shareholders with visibility on operations
and trading during the global COVID-19 pandemic.
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 June 2021.
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END
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