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.
11 October 2024
Dekel
Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food
Producers
Dekel Agri-Vision
Plc
('Dekel' or the
'Company')
October Palm Oil Production
Update and Positive 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
an October production update for its Ayenouan palm oil project in
Côte d'Ivoire ('Palm Oil Operation') as well as a positive progress
update regarding the performance of the new shelling and peeling
equipment at the cashew processing plant at Tiebissou, Côte
d'Ivoire (the 'Cashew Operation').
Key
Highlights - Palm Oil
Operation
· The
Palm Oil Operation low season has lingered longer than normal
resulting in a decrease in Crude Palm Oil ('CPO') production of
17.9% in October 2024 compared to October 2023.
· The
CPO extraction rate was slightly higher in October 2024 compared to
October 2023. As we exit the low season, we expect CPO
extraction rate to trend higher.
· Like
for like October 2024 CPO sales volumes were lower than October
2023 reflecting the lower production levels.
· CPO
sales prices remained steady at €775 per tonne in October 2024 and
continue to be historically high. International CPO prices
increased during October 2024 to over €1,050 per tonne. We
are seeing this flow through to our November pre sales and we
expect to report a material increase in our CPO sales prices for
November 2024.
|
|
Oct-24
|
Oct-23
|
Change
|
|
|
|
|
|
|
FFB processed (tonnes)
|
7,251
|
8,886
|
-18.4%
|
|
CPO Extraction Rate
|
19.5%
|
19.4%
|
0.5%
|
|
CPO production (tonnes)
|
1,415
|
1,723
|
-17.9%
|
|
CPO Sales (tonnes)
|
1,110
|
1,483
|
-25.2%
|
|
Average CPO price per
tonne
|
€775
|
€788
|
-1.6%
|
|
Palm Kernel Oil ('PKO') production
(tonnes)
|
96
|
150
|
-36.0%
|
|
PKO Sales (tonnes)
|
126
|
199
|
-36.7%
|
|
Average PKO price per
tonne
|
€853
|
€838
|
1.8%
|
Key
Highlights - Cashew
Operation
· As
reported on 10 October 2024, all new shelling and peeling equipment
had been installed and testing had commenced.
· We are
pleased to report that the new equipment is working well. We
have seen improvements in key KPI's including:
o Peeling rates have increased from 55% to 80% for all grades of
cashews
o Whole vs broken rates have increased from 70% to 90% for all
grades of cashews
o Daily Raw Cashew nut processing rates have increased from 6
tonnes to over 10 tonnes per day
· With
the new cashew equipment in good order, we will continue to
increase the daily production levels over the coming weeks and test
the equipment at 20 tonnes per day.
· The
improvements in processing are also enhancing the quality of our
mix of cash products which is adding to the recent improvement in
our overall sales prices.
· As a
result, we expect to report an improvement in cashew results in the
Q4 2024 report compared to Q4 2023. In addition, based
on the current positive progress, the Cashew
Operation is tracking well to become operationally cashflow
positive from December 2024.
Lincoln Moore, Dekel's
Executive
Director, said:
"Higher
international CPO prices are starting to flow through to local CPO
prices which should become apparent in our November monthly CPO
results. Although the CPO low production season has lingered
longer than normal, these higher prices should be supportive for
the upcoming high season. The Cashew Operation has taken a
great step forward over the past month with material improvements
in all key KPI's related to product quantities, quality and sales
prices. We will look to consolidate on this improvement as we
complete 2024 and the Cashew Operation is now poised to become a
profit contributor to the Group along with the Palm Oil Operation
as we enter 2025."
** 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
|
|
Zeus Capital Ltd (Nomad and Joint Broker)
James Joyce
Darshan Patel
|
+44 (0) 203 829 5000
|
|
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.
