TIDMDKL
RNS Number : 3178Z
Dekel Agri-Vision PLC
11 January 2024
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 January 2024
Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food
Producers
Dekel Agri-Vision Plc
('Dekel' or the 'Company')
Full Year 2023 Operational 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 unaudited full year
production update for the year ending 31 December 2023 ('FY-2023')
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 performed very well during FY 2023
driven by close to record Crude Palm Oil ('CPO') production and
relatively high historical CPO prices as outlined in the table
below.
FY-2023 FY-2022 Change
FFB processed (tonnes) 182,362 116,733 56.2%
CPO Extraction Rate 21.4% 22.1% -3.2%
CPO production (tonnes) 39,073 25,751 51.7%
CPO Sales (tonnes) 38,896 26,016 49.5%
Average CPO price per tonne EUR869 EUR1,025 -15.2%
Palm Kernel Oil ('PKO')
production (tonnes) 2,420 1,824 32.7%
PKO Sales (tonnes) 2,404 1,991 20.7%
Average PKO price per tonne EUR828 EUR1,381 -40.0%
-- Fresh Fruit Bunch ('FFB') volumes and Crude Palm Oil ('CPO')
production increased 56.1% and 51.7% respectively compared to FY
2022.
o December 2023 FFB and CPO was 11.8% and 4.8% respectively
higher than December 2022. CPO sales were up 48.3% in December 2023
compared to December 2022.
-- The strong 2023 production performance of the Palm Oil
operation was driven by ten consecutive months of higher
like-for-like production from March 2023 onwards.
-- CPO sales quantities increased 49.5% in FY 2023 compared to
last year, which was consistent with the higher CPO production. In
addition, PKO production increased 32.7% in FY 2023 compared to
last year.
-- The FY 2023 average CPO sales price achieved was historically
strong at EUR869 per tonne, albeit 15.2% below the record H1 2022
CPO sales prices. As the FY 2023 year progressed, local CPO prices
traded below international CPO prices but in turn, our FFB purchase
prices also decreased resulting in healthy gross margins being
achieved. International CPO prices ended 2023 at c.EUR850 per tonne
which remains supportive for the performance of the Palm Oil
Operation in 2024.
-- The CPO extraction rate for FY 2023 of 21.4% was slightly
lower than FY 2022 of 22.1% but remained well in line with
expectations.
Cashew Operation Update
-- FY 2023 was the first year of commercial production from the
Cashew Operation and a summary of the key performance indicators
('KPIs') are outlined in the table further below.
-- Whilst it was pleasing to commence commercial production, the
anticipated ramp up of daily production rates during FY-2023 was
hampered by ongoing technical issues primarily in the shelling and
peeling sections due to underperforming machinery provided by our
supplier.
-- Alternate machinery including additional shelling machines
were ordered in Q4 2023, which have been tested and commissioned.
However, as the Company started to ramp up production, the
percentage of unpeeled cashews remained high creating a bottleneck
in the process. During Q4, an independent expert was appointed to
assess the equipment performance and full production chain. This
expert is currently finalising recommendations which includes
replacement of parts of the shelling and peeling section which
requires a modest investment of c.EUR250,000 from existing cash
resources. Whilst daily production and quality should improve
during Q1 2024, any significant uplift in production and quality is
more likely during Q2 2024 when the recommendations of the external
expert can be fully implemented.
-- The successful completion of the BRC Global Food standard
assessment which took place in Q2 2023 and other key KPIs including
raw material prices, extraction rates meeting expectations was a
positive.
FY-2023
Raw Cashew Nut ('RCN')
Inventory
Opening RCN Inventory (tonnes) 1,841
RCN Purchased (tonnes) 1,419
RCN Processed (tonnes) 1,509
Closing RCN Inventory (tonnes) 1,751
Cashew Processing
Opening Cashews (tonnes) 111
RCN Processed (tonnes) 1,509
Cashew Extraction Rate 21.9%
Cashew Produced (tonnes) 330
Cashew Sales (tonnes) 265
Closing Cashews (tonnes) 176
Average Sales prices per
tonne
* Unpeeled Cashews EUR3,200
* Peeled Cashews EUR3,900
Lincoln Moore, Dekel 's Executive Director , said: "Ten
consecutive months of stronger like for like CPO production
resulted in a 51.7% increase in 2023 CPO production compared to
last year which was an excellent outcome. Coupled together with
continued relatively high CPO prices compared to historical levels,
FY2023 has been one of the best annual financial performances
delivered by the Palm Oil operation.
The Cashew Operation achieved a number of key milestones during
its first year of commercial production, however, daily production
rates continues to be impacted by the performance of the shelling
and peeling sections. Solutions are being implemented and we will
continue to update the market as we increase production."
** 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDURORRSSUAAUR
(END) Dow Jones Newswires
January 11, 2024 02:00 ET (07:00 GMT)
Dekel Agri-vision (LSE:DKL)
Gráfica de Acción Histórica
De Oct 2024 a Nov 2024
Dekel Agri-vision (LSE:DKL)
Gráfica de Acción Histórica
De Nov 2023 a Nov 2024
