TIDMDKL
RNS Number : 8671B
Dekel Agri-Vision PLC
15 June 2021
Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food
Producers
Dekel Agri-Vision Plc ('Dekel' or the 'Company')
Cashew Project Update
Dekel Agri-Vision Plc, the West African agriculture company
focused on building a portfolio of sustainable and diversified
projects, is pleased to provide an update on activity at its large
scale cashew processing plant at Tiebissou, Côte d'Ivoire (the
'Cashew Project'), where the construction phase is nearing
completion and Raw Cashew Nut ('RCN') purchasing has commenced in
readiness for the commencement of production. Dekel holds a 70.7%
interest in the Cashew Project which, once operational, will become
the Company's second producing asset, alongside the 100%-owned palm
oil operation at Ayenouan.
Raw Cashew Purchasing
Management is initially aiming to purchase approximately 3,000 -
3,500tn of RCN prior to the commencement of production. Currently,
1,500 tns have been purchased, and, as a result, Dekel remains on
track to achieve the above target. The Company is highly encouraged
by both the quality and price of the RCN purchased, both of which
have been in line with internal expectations. A drying system is
being installed at the Cashew Project which will enable further
purchases of RCN during the H2 2021 wet season, as the Company
better understands initial production rates post the commissioning
of the processing plant.
Construction and Recruitment Update
Excellent progress has been made with the construction of the
plant. A list of milestones achieved and work outstanding is
provided below:
-- Both the Employees' and the Administrative building
structures are ready, internal works are in progress
-- Weighbridge is ready for operation
-- Installation of water supply and electrical networks and fire
fighting equipment will be completed imminently
-- Building A is completed and ready for receiving RCN - total
of 1,500 tns of RCN already purchased and in storage in Building A,
where the sorting and drying equipment have been positioned
-- Low risk area of Building B is ready and the machinery,
including steaming, drying and shaling, is nearing completion
-- High risk area A of Building B was completed, including epoxy
floor cover, installation of equipment commenced
-- Laboratory room is ready to receive equipment
-- Main service roads and drainage on site are close to being
completed but this will not impact the timing of commissioning and
first production
-- Utilities, including the boiler, compressor and generator,
already positioned and ready for commissioning by vendor team from
France (who arrived late last week) and Italy (expected to arrive
next week)
-- Recruitment process of workforce, including key training programmes, are well advanced
Final Shipment of Equipment
Due to the impact of the ongoing coronavirus pandemic on both
the ability to execute shipments and the cost of transport, the
final shipment of milling equipment for the Cashew Project has been
split into a number of consignments from more than one location.
The majority of the remaining containers have been shipped and
those remaining will be shipped within June and are not holding up
current works.
The splitting of the final shipment is expected to cause some
delay in the timing of the commissioning of the processing plant at
Tiebissou. The delay is not expected to be significant and further
updates on progress of this final preparatory stage ahead of
commissioning will be provided over the coming weeks.
Dekel Agri-Vision Plc Executive Director Lincoln Moore said:
"Substantial progress has been made over the past few months to
bring the the Cashew Project to first production. Bringing the
project so close to first production during Covid-19 has not been
without its challenges and we are appreciative of the efforts of
our operating management and key vendors. The commencement of
cashew buying activity in the Tiebissou region demonstrates
management's confidence that commissioning and first production is
only a number of weeks away.
"Aside from first production, H2 2021 will include a number of
key milestones, as we look to fine tune the entire production cycle
from purchasing, processing to sale as well as maximising profit
margins, as we head into the first full year of production in 2022.
Together with an exceptional H1 2021 performance at our Ayenouan
palm oil operation in terms of production, sales and prices, we are
confident that the momentum behind the Company will not only be
maintained but will continue to build."
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 /
Akhil Shah (Corporate Finance)
Simon Johnson (Corporate Broking) +44 (0) 207 614 5900
Optiva Securities Limited (Joint Broker)
Christian Dennis
Jeremy King +44 (0) 203 137 1903
St Brides Partners Ltd (Investor Relations)
Frank Buhagiar
Cosima Akerman +44 (0) 207 236 1177
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 is
due to commence production in Q3 2021.
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