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 July 2024
Dekel
Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food
Producers
Dekel Agri-Vision
Plc
('Dekel' or the
'Company')
Half Year 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 half year
production update for the period ending 30 June 2024 ('H1 2024')
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
· Overall, we expect to deliver another strong H1 financial
performance from the Palm Oil operation with robust production
levels and relatively high historical CPO prices.
· The
Palm Oil Operation experienced a consistent high season albeit
slightly below the relatively strong H1 2023 results with Fresh
Fruit Bunch ('FFB') volumes and Crude Palm Oil ('CPO') production
decreasing marginally by 8.1% and 7.7% respectively compared to H1
2023.
· CPO
sales quantities increased 7.7% in H1 2024 compared to last
year. This is largely due to last year's high season arriving
much later than normal, leading to high CPO stock levels at the end
of H1 2023.
· The H1
2024 average CPO sales price achieved was historically strong at
€770 per tonne, albeit 17.6% below H1 2023 CPO sales price.
International prices continue to remain steady at approximately
€900 per tonne and we continue to see local CPO prices gradually
increase towards the international price with June 2023 prices
achieved of €773 per tonne.
· The
CPO extraction rate for H1 2024 of 22.0% was slightly higher than
H1 2023. Recent monthly CPO extraction rates including June
2024 have exceeded 23% which bodes well for H2 2024.
|
|
H1-2024
|
H1-2023
|
Change
|
|
|
|
|
|
|
FFB processed (tonnes)
|
105,444
|
114,745
|
-8.1%
|
|
CPO Extraction Rate
|
22.0%
|
21.9%
|
0.5%
|
|
CPO production (tonnes)
|
23,236
|
25,166
|
-7.7%
|
|
CPO Sales (tonnes)
|
22,360
|
20,758
|
7.7%
|
|
Average CPO price per
tonne
|
€770
|
€934
|
-17.6%
|
|
Palm Kernel Oil ('PKO') production
(tonnes)
|
1,367
|
1,442
|
-5.2%
|
|
PKO Sales (tonnes)
|
1,333
|
515
|
158.8%
|
|
Average PKO price per
tonne
|
€803
|
€947
|
-15.2%
|
Cashew Operation Update
· The
Cashew Operation continued to operate on a conservative basis while
we eagerly await the commissioning of new off the shelf shelling
and peeling equipment.
· All
new shelling and peeling equipment was ordered in January
2024. Deliveries started arriving last week related to the
peeling section functionality. Shipments related to shelling are
scheduled to arrive in late July with the last remaining items
related to parts of the peeling functionality in
September.
· Commissioning of new equipment is being overseen by a highly
credentialled cashew processing consultant and will start over the
coming weeks. We expect to see an improvement in cashew production
volumes and quality in late Q3 2024.
· Pleasingly, we have seen a material increase in whole cashew
sales prices in the last few weeks which should also be reflected
in our Q3 production and sales update.
|
|
H1-2024
|
H1-2023
|
|
|
|
|
|
RCN
Inventory
|
|
|
|
Opening RCN Inventory
(tonnes)
|
1,751
|
1,841
|
|
RCN Purchased (tonnes)
|
419
|
1,378
|
|
RCN Processed (tonnes)
|
588
|
759
|
|
Closing RCN Inventory
(tonnes)
|
1,582
|
2,460
|
|
|
|
|
|
Cashew Processing
|
|
|
|
Opening Cashews (tonnes)
|
154*
|
111
|
|
RCN Processed (tonnes)
|
588
|
759
|
|
Cashew Extraction Rate
|
19.6%
|
23.3%
|
|
Cashew Produced (tonnes)
|
115
|
177
|
|
Cashew Sales (tonnes)
|
215
|
170
|
|
Closing Cashews (tonnes)
|
54
|
118
|
|
|
|
|
|
Average Sales prices per tonne
|
|
|
|
- Whole Unpeeled
Cashews
|
€3,300
|
€3,500
|
|
- Whole Peeled
Cashews
|
€4,250
|
€4,400
|
|
- Mixed Peeled
Cashews
|
€3,100
|
€3,750
|
*
Opening cashew adjustment of 22tn
Lincoln Moore, Dekel's
Executive
Director, said:
"We expect to
deliver another strong H1 financial performance from the Palm Oil
operation with the continued sustained period of robust production
levels and relatively high historical CPO
prices."
"We continue to conservatively produce from the Cashew
Operation whilst we eagerly await the commissioning of new
equipment which we believe is finally edging towards conclusion. We
are pleased to see a recent increase in cashew prices which will
also greatly assist the financial metrics of the Cashew Operation
moving forward.
** 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
|
+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.