TIDMDKL
RNS Number : 7125F
Dekel Agri-Vision PLC
12 July 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.
12 July 2023
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 2023 ('H1 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 experienced a significantly stronger
high season compared to H1 2022 with Fresh Fruit Bunch ('FFB')
volumes and Crude Palm Oil ('CPO') production increasing 52.1% and
49.0% respectively compared to H1 2022.
-- The high season was much later than we have experienced in
previous years including June 2023 CPO monthly production being
261% higher than June 2022. Early guidance from July also indicates
we will record a 5(th) successive month of significantly higher
production but lower extraction rates compared to 2022.
-- CPO sales quantities increased 22.4% in H1 2023 compared to
last year. Given the high season arrived much later than normal our
CPO stock levels at the end of H1 2023 are much higher than typical
at over 4,800tn. This CPO will be sold during H2 2023 which we
expect will drive strong sales quantities over the coming
months.
-- The H1 2023 average CPO sales price achieved was historically
strong at EUR934 per tonne, albeit 7.8% below the record H1 2022
CPO sales price. The local price has slightly softened over the
past few weeks to around EUR875-900 due to excess local CPO supply
resulting from the late high season, however, we expect local
prices to firm in comparison to the international price during the
upcoming low season as local CPO supplies typically decrease.
-- The CPO extraction rate for H1 2023 of 21.9% was slightly
lower than H2 2022 but remains well in line with expectations.
-- Overall, we expect to deliver a strong H1 financial
performance for the Palm Oil operation and with higher than normal
CPO and PKO stock on hand at the end of H1 2023, we expect H2 2023
is well positioned to outperform H2 2022.
H1-2023 H1-2022 Change
FFB processed (tonnes) 114,745 75,448 52.1%
CPO Extraction Rate 21.9% 22.4% -2.2%
CPO production (tonnes) 25,166 16,893 49.0%
CPO Sales (tonnes) 20,758 16,966 22.4%
Average CPO price per tonne EUR934 EUR1,013 -7.8%
Palm Kernel Oil ('PKO')
production (tonnes) 1,442 1,162 24.1%
PKO Sales (tonnes) 515 1,180 -56.3%
Average PKO price per tonne EUR947 EUR1,454 34.9%
Cashew Operation Update
-- It was necessary to slow down the gradual increase in daily
production we saw in late March and early April 2023 to:
o Ensure an orderly transition of the Cashew Operation from a
batch process to a full continuous process more carefully than
expected.
o Deal with some teething issues in the continuous process
mainly related to the continuous operation of the 10 new shelling
machines. A large majority of the machines have been operating well
in the past few days.
o Undertake the onsite review component of our BRC Global Food
standard assessment ('BRC') which commenced in June 2023 and
included an extensive review and testing of each operating station.
The BRC assessment is a critical part of our strategy to extract
premium pricing and the onsite review is one of the final stages to
obtain BRC certification.
-- 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.
H1-2023
RCN Inventory
Opening RCN Inventory (tonnes) 1,841
RCN Purchased (tonnes) 1,378
RCN Processed (tonnes) 759
Closing RCN Inventory (tonnes) 2,460
Cashew Processing
Opening Cashews (tonnes) 111
RCN Processed (tonnes) 759
Cashew Extraction Rate 23.3%
Cashew Produced (tonnes) 177
Cashew Sales (tonnes) 170
Closing Cashews (tonnes) 118
Average Sales prices per
tonne
* Unpeeled Cashews EUR3,500
* Peeled Cashews EUR4,500
Lincoln Moore, Dekel 's Executive Director , said: "Four
consecutive months of very strong CPO production coupled together
with continued high CPO prices has delivered an excellent H1 2023
operating performance for the Palm Oil operation. With significant
levels of CPO and PKO stock on hand at the end of H1 2023 due to
the late high season, the platform is set for a strong performance
in H2 2023 compared to H2 2022 as well."
"It was necessary to slow down the ramp up of the Cashew
Operation to ensure an orderly transition to a full continuation
process. In addition, we also commenced the onsite BRC Food
Standard assessment in June 2023 which slowed production but is a
key milestone to achieve in order to obtain premium pricing. With
the other key value drivers including the extraction rate, raw
material prices and sales prices operating in line with
expectations we expect to deliver continued improvement in the
Cashew Operation over the coming weeks and months."
** 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 in
2023.
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