REG - Dekel Agri-Vision - May Palm Oil Production Update

Dekel Agri-VisionAnnouncement

10/06/2024 07:00

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RNS Number : 6959R  Dekel Agri-Vision PLC  10 June 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.

 

10 June 2024

 

Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food Producers

 

Dekel Agri-Vision Plc

 

('Dekel' or the 'Company')

 

May Palm Oil Production 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 a May 2024 monthly production update for its Ayenouan palm oil project
in Côte d'Ivoire ('Palm Oil Operation').

 

Key Highlights

·      Similar to last month, the Palm Oil Operation had a solid month
albeit CPO production was 17.7% lower than the record May 2023 results.  This
is due to the high season in 2024 returning to a more typical peak earlier
than 2023 where the peak occurred later in H1 than usual.  Year to date May
2024 CPO production remains in line with year to date May 2023 and in line
with market expectations.

·      CPO sales prices continued to be historically strong at €777
per tonne.  International prices continue to remain steady at approximately
€900 per tonne.  We also continue to see local CPO prices gradually
increase towards the international price.

·      The CPO extraction rate of 23.3% in May 2024 was exceptional
being 6.9% higher than May 2023.  We are seeing this trend of higher CPO
extraction rates than last year continue in June which is enhancing our gross
margin percentage.

·      Excellent PKO sales in May 2024 of 699 tonnes and a significant
improvement in PKO prices compared to prior months contributed materially to
an overall positive May monthly financial performance.

 

                                              May-24  May-23  Change

 FFB processed (tonnes)                       18,725  24,301  -22.9%
 CPO Extraction Rate                          23.3%   21.8%   6.9%
 CPO production (tonnes)                      4,368   5,306   -17.7%
 CPO Sales (tonnes)                           3,959   4,741   -16.5%
 Average CPO price per tonne                  €777    €953    -18.5%
 Palm Kernel Oil ('PKO') production (tonnes)  235     320     -26.5%
 PKO Sales (tonnes)                           699     Nil     n/a
 Average PKO price per tonne                  €836    n/a     n/a

 

Lincoln Moore, Dekel's Executive Director, said: "The Palm Operation is
continuing to be a strong performer with strong production, high historical
CPO prices and excellent extraction rates.  We remain well on track with
market expectations for H1 2024 which we look forward to announcing next
month."

 

 

** ENDS **

 

For further information, please visit the Company's website
www.dekelagrivision.com or contact:

 

 Dekel Agri-Vision Plc                     +44 (0) 207 236 1177

 Youval Rasin

 Shai Kol

 Lincoln Moore

 WH Ireland Ltd (Nomad and Joint Broker)   +44 (0) 20 7220 1666

 James Joyce

 Darshan Patel

 Isaac Hooper

 Optiva Securities Limited (Joint Broker)  +44 (0) 203 137 1903

 Christian Dennis

 Daniel Ingram

 

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.

 

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