TIDMDKL
RNS Number : 4812P
Dekel Agri-Vision PLC
10 October 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.
10 October 2023
Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food
Producers
Dekel Agri-Vision Plc
('Dekel' or the 'Company')
September Palm Oil Production & Q3 2023 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 its Q3 2023 production
for the Ayenouan palm oil project in Côte d'Ivoire ('Palm Oil
Operation') and the cashew processing plant at Tiebissou, Côte
d'Ivoire (the 'Cashew Operation').
Palm Oil Operation Update
-- The Palm Oil Operation continued to deliver strong volumes
during Q3 2023 with Fresh Fruit Bunch ('FFB') volumes and Crude
Palm Oil ('CPO') production increasing 90.7% and 78.4% respectively
compared to Q3 2022. This was also our 7(th) successive month of
significantly higher production compared to 2022.
-- CPO sales quantities increased 192.4% in Q3 2023 compared to
last year. A large portion of the higher than normal CPO inventory
at the end of H1 2023 (due to the late high season), has now been
successfully sold and inventory levels have normalised.
-- The Q3 2023 average CPO sales price achieved was EUR817 per
tonne, a 20.1% decrease from the record Q3 2023 CPO sales prices.
The local CPO price in September 2023 increased slightly to EUR822
per tonne despite some softening of the international CPO price
from c.EUR900 per tonne to c.EUR850 per tonne as local stock levels
start to tighten following the strong production high season.
-- The CPO extraction rate for Q3 2023 of 19.3% was slightly
lower than Q3 2022, albeit we saw an improvement in the extraction
rate in September to 19.8%.
-- Overall, largely due to the 192.2% increase in CPO sales
volumes in Q3 2023 compared to Q3 2022, we maintain overview our
guidance that H2 2023 is well positioned to materially outperform
H2 2022.
Sept-23 Sept-22 Change Q3-2023 Q3-2022 Change
FFB processed (tonnes) 10,866 6,074 78.9% 30,084 15,777 90.7%
CPO Extraction Rate 19.8% 21.3% -7.0% 19.3% 20.6% -6.3%
CPO production (tonnes) 2,149 1,296 65.8% 5,797 3,249 78.4%
CPO Sales (tonnes) 2,734 1,076 154.1% 10,143 3,471 192.2%
Average CPO price
per tonne EUR822 EUR1,030 -20.2% 817 1,022 -20.1%
Palm Kernel Oil ('PKO')
production (tonnes) 97 105 -7.6% 489 286 71.0%
PKO Sales (tonnes) 105 53 98.1% 1,463 464 215.3%
Average PKO price
per tonne EUR838 EUR1,176 -28.7% EUR783 EUR1,372 -42.9%
Cashew Operation Update
-- The volume of Raw Cashew Nut ('RCN') processed in Q3 2023
increased 134.5% compared to Q2 2023. This was due to gradual
improvements in the production value chain and less operational
interruption following the successful completion of the BRC Global
Food standard assessment which took place in Q2 2023.
-- Whilst we have seen improvements in daily processing levels,
the performance of various items of equipment provided by our
Italian supplier remain below technical specifications, most
notably the peeling and shelling machinery. We have taken further
actions to supplement the Italian equipment including ordering
additional shelling machines from an external party which are
expected to be installed in November 2023. We have successfully
used these alternate shelling machines when initially awaiting
delayed equipment from the Italian supplier and the installation of
these machines should drive a further a material increase in
processing volumes.
-- The other main value drivers of the Cashew Operation
including the price of Raw Cashew Nut ('RCN'), the Cashew
extraction rate and sales prices are delivering in line with
expectations.
Q3-2023
RCN Inventory
Opening RCN Inventory (tonnes) 2,460
RCN Purchased (tonnes) 41
RCN Processed (tonnes) 530
Closing RCN Inventory (tonnes) 1,971
Cashew Processing
Opening Cashews (tonnes) 118
RCN Processed (tonnes) 530
Cashew Extraction Rate 22.4%
Cashew Produced (tonnes) 119
Cashew Sales (tonnes) 35
Closing Cashews (tonnes) 202
Average Sales prices per
tonne
* Unpeeled Cashews EUR3,300
* Peeled Cashews EUR4,500
Lincoln Moore, Dekel 's Executive Director , said: "A 192%
increase in Q3 CPO sales volumes compared to Q3 2022 has kicked off
a very strong start to the H2 2023 financial performance of the
Palm Oil Operation which is performing at close to record
levels."
"It is pleasing to see a 134% increasing in the Cashew Operation
processing rate compared to Q2 2023 and we are taking further
measures to drive the next step up in production volumes over the
coming months as we strive to enhance production volumes and
deliver positive operating cashflow from the Cashew Operation."
** 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
Darshan Patel
Isaac Hooper +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 is currently transitioning to full commercial production in
2023.
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