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 April 2024
Dekel
Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food
Producers
Dekel Agri-Vision
Plc
('Dekel' or the
'Company')
Q1 2024 Palm Oil and Cashew
Operations 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 Q1 2024 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 reported a strong Q1 2024 with Fresh Fruit Bunch
('FFB') volumes and Crude Palm Oil ('CPO') production increasing
30% and 23.5% respectively compared to Q1 2023.
o March 2024 monthly production was marginally lower than March
2023
· CPO
sales quantities increased 18.8% in Q1 2024 compared to last
year. The relatively high levels of CPO inventory, and in
particular PKO inventory held at the end of Q1 2024 compared to
last year should underpin strong sales volumes during Q2
2024.
· The Q1
2024 average CPO sales price achieved was €762 per tonne, a 21.8%
decrease from the record Q1 2023 CPO sales prices. The local
CPO price in March 2024 continued to trend upwards month on month
increasing 2.4% compared to February 2024. Whilst
encouraging, local CPO prices remain below international CPO prices
as efforts continue locally to manage food prices.
· The
CPO extraction rate for Q1 2024 of 21.2% was slightly lower than Q1
2023. Early guidance in April 2024 shows CPO extraction rates
increasing towards 22%.
· Overall, due to the relatively strong production volume, we
maintain on track to deliver a strong H1 2024
performance.
|
|
Mar-24
|
Mar-23
|
Change
|
Q1-24
|
Q1-23
|
Change
|
|
|
|
|
|
|
|
|
|
FFB processed (tonnes)
|
23,579
|
24,508
|
-3.8%
|
54,381
|
41,819
|
30.0%
|
|
CPO Extraction Rate
|
20.9%
|
21.6%
|
-3.2%
|
21.2%
|
22.3%
|
-4.9%
|
|
CPO production (tonnes)
|
4,929
|
5,302
|
-7.0%
|
11,510
|
9,318
|
23.5%
|
|
CPO Sales (tonnes)
|
4,509
|
4,048
|
-11.4%
|
9.317
|
7,843
|
18.8%
|
|
Average CPO price per
tonne
|
€777
|
€967
|
-19.6%
|
€762
|
€974
|
-21.8%
|
|
Palm Kernel Oil ('PKO') production
(tonnes)
|
259
|
280
|
-3.9%
|
641
|
493
|
30.0%
|
|
PKO Sales (tonnes)
|
86
|
383
|
-50.7%
|
194
|
413
|
-53.0%
|
|
Average PKO price per
tonne
|
€686
|
€973
|
-29.5%
|
€733
|
€973
|
-24.7%
|
Cashew Operation Update
· The
Cashew Operation was intentionally slowed down during Q1 2024 to
preserve raw cashew nut ('RCN') inventory while we await the
arrival of new off the shelf shelling and peeling equipment.
This is reflected in the numbers outlined in the table below.
While the throughput of the existing shelling and peeling equipment
can reach expected breakeven production levels, the output of
unpeeled cashews remains too high hindering gross
margins.
· All
new shelling and peeling equipment was ordered in January 2024,
with deliveries expected to start arriving in June 2024, which will
be announced in due course. With optimal performance of the
shelling and peeling stations working in tandem with the other 10
well performing stations, we expect to see a material improvement
in cashew production volumes and quality during Q3 2024.
· New
shelling and peeling equipment installation being overseen by a
highly credentialled cashew processing consultant. Other new
cashew processors in our region using this new off the shelf
technology shelling and peeling systems are also achieving
excellent results.
|
|
Q1-24
|
Q1-23
|
Change
|
|
|
|
|
|
|
RCN
Inventory
|
|
|
|
|
Opening RCN Inventory
(tonnes)
|
1,751
|
1,841
|
-4.9%
|
|
RCN Purchased (tonnes)
|
190
|
820
|
76.8%
|
|
RCN Processed (tonnes)
|
(275)
|
(533)
|
-48.4%
|
|
RCN Sold (tonnes)
|
(42)
|
Nil
|
n/a
|
|
Closing RCN Inventory
(tonnes)
|
1,624
|
2,128
|
23.6%
|
|
|
|
|
|
|
Cashew Processing
|
|
|
|
|
Opening Cashews (tonnes)
|
176
|
111
|
58.6%
|
|
RCN Processed (tonnes)
|
275
|
533
|
-48.4%
|
|
Cashew Extraction Rate
|
18.2%
|
23.1%
|
-21.6%
|
|
Cashew Produced (tonnes)
|
50
|
123
|
-59.3%
|
|
Cashew Sales (tonnes)
|
93
|
103
|
-9.7%
|
|
Closing Cashews (tonnes)
|
133
|
131
|
1.5%
|
|
|
|
|
|
|
Average Sales prices per tonne
|
|
|
|
|
- Unpeeled
Cashews
|
€3,150
|
€3,375
|
-6.7%
|
|
- Peeled
Cashews
|
€3,250
|
€4,500
|
-27.8%
|
|
|
|
|
|
Lincoln Moore, Dekel's
Executive
Director, said:
"The Palm Oil
Operation remains on track to deliver a strong H1 2024 performance
and continues to underpin the Company's financial
performance. The major catalyst for the next phase of growth
and share price performance is the Cashew Operation. With
shelling and peeling equipment scheduled for delivery in June and
installation being overseen by a highly credentialled cashew
processing consultant, we are edging closer towards being in a
position to ramp up production at optimum levels of
quality."
** 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.
