TIDMDKL
RNS Number : 8742H
Dekel Agri-Vision PLC
11 April 2022
Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food
Producers
Dekel Agri-Vision Plc ('Dekel' or the 'Company')
March Palm Oil Production Update and Cashew Project 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 March production
update for its Ayenouan palm oil project in Côte d'Ivoire, and an
update on the timing of the ramp-up of production of our
large-scale cashew processing plant at Tiebissou, Côte d'Ivoire
(the 'Cashew Project').
Key Highlight s
Palm Oil Project
-- In line with guidance last month, the high season which
typically peaks in March has yet to commence in earnest resulting
in CPO production being 50.5% lower than March last year. This
highly unusual change in seasonal production is being experienced
throughout Côte d'Ivoire and also in Ghana and Nigeria.
-- Early guidance for April is that production is tracking at a
similar level to March. Intra month production is typically
significantly higher in the last 10 days of each month so we will
have better vision of any seasonal surge later this month.
-- CPO price of EUR996 per tonne achieved in March 2022, a 25.6%
increase compared to March 2021
o Following the recent spike in international prices, we have
identified new buyers at higher prices which will start to flow
through from April. We are sensitive to meeting local commitments
but we expect approximately 40-50% of our expected April production
will be sold at over EUR1,150 per tonne ex-factory
-- CPO extraction rate increased a further 0.5 percentage points
from February to 22.8% and was 1.4 percentage points higher than
March 2021.
-- Palm Kernel Oil ('PKO') prices also continued their strong
momentum following the commencement of exports achieving EUR1,486
per tonne in March 2022, a 79.0% increase compared to March
2021.
-- High prices and excellent CPO extraction rates mean Q1 2022
Revenue remains ahead of Q1 2021
Cashew Project
-- Material progress achieved during the month relating to the
procurement and shipment of key remaining equipment in order to
commence the final assembly phase to ramp up to full production
-- In the interim, production from the Cashew project continued
at approximately 15% of production capacity
Mar-22 Mar-21 Change Q1 2022 Q1 2021 Change
FFB processed (tonnes) 15,673 32,261 -51.4% 47,785 71,500 -33.2%
CPO production (tonnes) 3,567 6,895 -48.3% 10 , 553 15,327 -31.1%
CPO Sales (tonnes) 2,788 6,629 -57.9% 9,751 13,921 -30.0%
Average CPO price
per tonne EUR996 EUR793 25.6% EUR989 EUR794 24.6%
- 12.
PKO production (tonnes) 235 329 -28.6% 703 804 6 %
PKO Sales (tonnes) 125 398 -68.6% 821 967 -15.1%
Average PKO price
per tonne EUR1,486 EUR830 79.0% EUR1,392 EUR780 78.5%
PKC production (tonnes) 374 505 -25.9% 1,106 1,187 -6.8%
PKC Sales (tonnes) 75 529 -85.8% 468 978 -52.1%
Average PKC price
per tonne EUR85 EUR78 9.0% EUR85 EUR74 14.9%
CPO Production
-- The lower level of current production is being experienced
nationwide and also in Ghana and Nigeria.
-- Local agronomy experts throughout the region are having
difficulty pinpointing the reasons for this variation.
-- Early guidance for April suggests we are currently tracking
at similar production levels as March. Typically, 70% of production
occurs in the last half of any given month so we will have more
vision to update the market at this time in terms of the typical
high season production surge which has yet to take place
-- Revenue for Q1 2022 remains higher than last year with the
current lower levels of production being more than offset by higher
CPO extractions rates and higher CPO and PKO prices
CPO Sales and Prices
-- As announced last month, given the current price gap between
local prices and international prices that has arisen, we have
opened discussions with a number of new groups to maximise sales
prices whilst honouring our local commitments. This has led to
sales being agreed for 40-50% of our expected production for April
at over EUR1,150 per tonne. Importantly, these prices continue to
be achieved ex-factory.
-- Discussions also continue with parties including export
partners within African and Europe as we continue to diversify and
enhance our sales prices over the coming months.
Palm Kernel Oil ('PKO') and Palm Kernel Cake ('PKC')
-- PKO Prices: 79% increase in PKO prices to EUR1,486 per tonne
compared to EUR830 in March 2021.
-- Our success in identifying new buyers for our PKO is driving
a material increase in the profitability of the PKO business unit
in 2022.
Cashew Project
-- Material progress was achieved in March as we seek to ramp up
production towards full capacity:
o Colour sorter was shipped from China with expected arrival
date in Côte d'Ivoire in May 2022
o 10 shelling machines have been procured locally to support
full scale production whilst the machines in Italy await shipment
in batches commence over the coming weeks
o Timelines to move towards full production are now becoming
more certain with the final assembly period taking place through
May and June which should see production levels materially increase
during this period
-- The Cashew processing plant is continuing operating well at a limited capacity.
Lincoln Moore, Dekel 's Executive Director , said: "Production
wise, it has been an unusual period for 7 months now with high
production during the period September to December 2021 and low
production during February and March 2022. Whilst it is our
expectation Q2 2022 will see improvement, it is difficult for local
agronomists to pinpoint the reasons for this variation and
therefore forecast production so we will continue to provide
monthly forward guidance."
"Importantly we are achieving CPO extractions higher than last
year and coupled together with high local CPO and PKO prices, which
have progressively increased over the past few months, we remain
well positioned to deliver a strong H1 2022 performance and take
advantage of any surge in production during Q2 2022."
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 /
Elliot Mustoe (Corporate Finance) +44 (0) 207 614 5900
Optiva Securities Limited (Joint Broker)
Christian Dennis
Jeremy King +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 crude
palm oil mill; a cashew processing project in Tiebissou, which
commenced production in early January 2021.
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END
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