Dekel Agri-Vision PLC August Palm Oil Production Update (7822L)

TIDMDKL

RNS Number : 7822L

Dekel Agri-Vision PLC

08 September 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.

8 August 2023

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

Dekel Agri-Vision Plc

('Dekel' or the 'Company')

August 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 an August production update for its Ayenouan palm oil project in Côte d'Ivoire ('Palm Oil Operation').

Key Highlight s

-- The Palm Oil Operation delivered a 6(th) consecutive month of stronger like for like production in August 2023 compared to August 2022 recording increases in Crude Palm Oil ('CPO') and Palm Kernel Oil ('PKO') production of 38.3% and 103.3% respectively.

-- Like for like August 2023 CPO sales volumes continued to be strong increasing 55.6% compared to last year and August PKO sales volumes increasing 1,116.4%. The exceptional sales quantities of PKO in particular, reflect the unwinding of higher than normal inventory numbers at the end of H1 2023 resulting from the strong late peak to the recent production high season.

-- CPO sales prices increased slightly to EUR822 per tonne in August 2023 compared to EUR814 per tonne achieved last month. Local CPO prices are still trading slightly below international CPO prices which traded around EUR850 per tonne in August 2023 due to high than normal local stock supplies.

-- The CPO extraction rate started August on a slight upward trajectory before tapering off during the back end of August 2023 to finish at 18.4%. This typically means we are in the heart of the low season and we expect extraction rates to trend high over the coming months.

-- The financial results for August 2023 were stronger compared to August 2022, largely driven by the 55.6% increase in CPO sales volumes and the exceptionally high PKO sales volumes.

 
                                Aug-23     Aug-22     Change 
 
 FFB processed (tonnes)          7,659      5,281      45.0% 
 CPO Extraction Rate             18.5%      19.4%      -4.6% 
 CPO production (tonnes)         1,416      1,024      38.3% 
 CPO Sales (tonnes)              1,786      1,148      55.6% 
 Average CPO price per tonne    EUR822   EUR1,030     -20.2% 
 Palm Kernel Oil ('PKO') 
  production (tonnes)              185         91     103.3% 
 PKO Sales (tonnes)                815         67   1,116.4% 
 Average PKO price per tonne    EUR798   EUR1,220     -34.6% 
 

Lincoln Moore, Dekel 's Executive Director , said: "We are pleased to record our 6(th) consecutive month of stronger CPO production compared to last year. Together with strong CPO and PKO sales volumes, the Palm Oil Operation monthly financial performance during H2 2023 continues to track well ahead of H2 2022."

** 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                              [phone] 
 WH Ireland Ltd (Nomad and Joint Broker) 
  James Joyce 
  Darshan Patel                              [phone] 
 Optiva Securities Limited (Joint Broker) 
  Christian Dennis 
  Daniel Ingram                              [phone] 
 

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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September 08, 2023 02:00 ET (06:00 GMT)