Dekel Agri-Vision PLC September Palm Oil & Cashew Operation Update (3079C)

TIDMDKL

RNS Number : 3079C

Dekel Agri-Vision PLC

10 October 2022

Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food Producers

Dekel Agri-Vision Plc

('Dekel' or the 'Company')

September Palm Oil Production Update and 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 a September production update for its Ayenouan palm oil project in Côte d'Ivoire ('Palm Oil Operation') and an update on progress regarding the ramp-up of production of our large-scale cashew processing plant at Tiebissou, Côte d'Ivoire (the 'Cashew Operation').

Key Highlight s

-- Dekel achieved a 15.0% improvement in fresh fruit bunches ('FFB') processed compared to last month and a significant improvement in crude palm oil ('CPO') extraction rates at 21.3% compared to 19.4% last month.

-- However, CPO volumes remained low compared to September 2021 (36.3% lower), while CPO prices achieved continued at close to all-time highs (EUR1,030).

-- Dekel had a successful month in terms of final equipment installation and commissioning at the Cashew Operation, which means it is well on track to meet the Company's 2023 objective of processing 10,000tn of raw cashew nuts ('RCN').

 
                                  Sep-22   Sep-21   Change 
 
 FFB processed (tonnes)            6,074   10,393    -41.6% 
 CPO Extraction Rate               21.3%    19.6%     8.7% 
 CPO production (tonnes)           1,296    2,035    -36.3% 
 CPO Sales (tonnes)                1,076    2,046    -47.4% 
 Average CPO price per tonne    EUR1,030   EUR954     8.0% 
 Palm Kernel Oil ('PKO') 
  production (tonnes)                105      137    -23.4% 
 PKO Sales (tonnes)                   53      Nil     n/a 
 Average PKO price per tonne    EUR1,176      n/a     n/a 
 Palm Kernel Cake ('PKC') 
  production (tonnes)                Nil      241     n/a 
 PKC Sales (tonnes)                  Nil      260     n/a 
 Average PKC price per tonne         n/a    EUR80     n/a

CPO Production

-- FFB quantities improved 15.0% compared to last month but were 41.6% lower than September 2021. In early October, volumes are showing further signs of improvement but they remain materially lower than this time last year when record volumes were achieved.

-- The CPO extraction rate achieved of 21.3% was an excellent result and close to a record for September, in addition to being 8.7% higher than September 2021 aiding profit margins.

CPO and PKO Price

-- Local CPO prices achieved of EUR1,030 were 8.0% higher than September 2021. International CPO prices fell below EUR1,000 for the first time this year in September largely due to macro conditions but have steadied in early October to remain around EUR1,000 per tonne. Importantly, there remains excellent local demand around the EUR950-1,000 price range.

-- PKO prices achieved continue to be significantly higher than average 2021 prices. Strong local and regional demand meant that local PKO prices in September traded at a slight premium to international prices.

CPO Sales

-- 47.4% lower like-for-like CPO sales quantities in September reflect the reduction in CPO produced resulting from weak FFB volumes and our efforts to carefully manage sales volumes where appropriate to maximise pricing.

Cashew Operation

-- Further to the Company's announcement of 12 September 2022, the production capacity of the Cashew Operation has materially increased and in October should reach 75% of the level required to process 10,000tn pa.

-- The colour sorter and shelling machines mentioned in the Company's previous monthly operational updates are operating well following the completion of their delivery and commissioning. With the resultant material increase in throughput, the Company is now integrating the last two peeling machines which, when fully operational in the next few weeks, will complete the operational value chain.

-- As processing patterns continue to stabilise, we will begin sharing key statistical operational and production data as appropriate.

Lincoln Moore, Dekel 's Executive Director , said: "The Cashew Operation is now on track in terms of production capacity to reach the Company's goal of processing 10,000 tonnes of RCN in 2023. Whilst CPO volumes remain below the record H2 2021 results, CPO volumes are showing signs of improvement and CPO extraction rates are relatively strong. CPO and PKO prices achieved remained close to all-time highs which is important as we edge closer to the next high season in early 2023."

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.

** 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 
 WH Ireland Ltd (Nomad and Joint Broker) 
  James Joyce 
  Ben Good                                   +44 (0) 20 7220 1666 
 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 commenced production in early January 2022.

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October 10, 2022 02:00 ET (06:00 GMT)

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