Dekel Agri-vision Share Discussion Threads

[rivaldo] 27/11/2020 13:23

Another rise today. And after a brief dip, the CPO price has gone back up to $900 as of Wednesday.

And prices are expected to be high for at least H1 next year:



"Gapki Expects Tight Supply to Support Palm Oil Price Into 2021
BY :JAYANTY NADA SHOFA
NOVEMBER 27, 2020

Jakarta. The price of crude palm oil enjoys a significant rise thanks to the tight supply amid the Covid-19 pandemic, and the condition will persist well into the first half of 2021, according to the Indonesian Palm Oil Association, or Gapki.

Gapki's chairman Joko Supriyono, Indonesia's free-on-board CPO price surpassed $870 per ton this month, the highest level in three years, in line with the decline in production.

"As of September, the production in Indonesia is at a negative 5 percent compared to last year," Joko told the Jakarta Globe in an online media visit on Thursday.

etc"

[chadders] 25/11/2020 09:56

Another CPO producer benefitting from the rise in the CPO price.

[rivaldo] 24/11/2020 13:21

The CPO price is up yet again, to $920 as of yesterday - these are over 6 year highs now:

[chadders] 24/11/2020 09:53

Another CPO producer reporting a big increase in profitability due to the soaring CPO price.

[chadders] 23/11/2020 12:21

CPO futures up again. CPO now at $910. DKL share price still bumping along.

[rivaldo] 20/11/2020 09:54

Breaking out nicely now.

For the record it's worth noting that the new Arden note - with their increased 8.1p price target - can be accessed for free here:



"Dekel Agri-Vision has announced the completion of the acquisition of an addition 14.2% interest in the large-scale cashew nut processing project, currently under construction in Tiebissou, Côte d’Ivoire. (The company’s intention to acquire this additional interest was first announced on 3 November 2020). Following completion, Dekel AgriVision now owns a 52% controlling interest in the project, which is on track for first production in Q2, 2021. We have consolidated revenues and earnings from the cashew business into our group financials and reflected the increased 52% profit contribution from the cashew project. As a result, we have increased our target price, based on our DCF valuation to 8.1p from 7.6p, reflecting a market cap of £36.7m, up from £32.2m, and compared to a current market cap of £10.2m. We reiterate our Buy recommendation."

[2vdm] 20/11/2020 08:57

or coffee? The only other thing that concerns me is the political siatuation. Have both sies comne to an agreement yet? Always trick in developing counties and over 85 deaths reported so far.

[leoboy] 19/11/2020 14:13

rn - do not forget the next unknown commodity that we have yet to be informed of ...coconut oil , cocoa , ???

[rightnellie] 19/11/2020 14:00

The palm oil prices and general progress in diversifying into cashew nuts and later biomass/solar energy production make this irresistable. I had to buy more!!

[rivaldo] 19/11/2020 13:49

Remember that Arden's forecasts for this year - and presumably the same or similar going forward - are predicated on a CPO price of €575, or around $680.

Th CPO price is now up to $890 as per yesterday's chart - almost 40% higher:

[rivaldo] 19/11/2020 11:18

Good to see buying now at the full 2.8p offer price - hopefully an indicator there's not much stock around.

Hi 2magpies, cheers - if CPO prices continue at these levels - or higher - for the imminent CPO high season, plus we get on-time commencement of cashew production, there must be serious upside from here.

I'm still in CAR - H1 update next week should show medical plastics roaring ahead, offset to some extent by aerospace. Overall likely to be pretty rosy imho.

[mfhmfh] 19/11/2020 10:04

up to date pictures on official twitter page:

[outlawinvestor] 19/11/2020 09:45

@treadertrev - the initiation document specifies the assumptions in the analyst's model. Specifically he used 12.9% WACC for palm oil DCF and 8.6% WACC for cashew operations.



It's probably worthwhile asking the analyst - you just might get a reply from him!

[2magpies] 19/11/2020 09:17

rivaldo

another good pick.

A compnay with actual substance.

(PS: have you gone off CAR ??)

[chadders] 19/11/2020 09:08

More positive industry news. CPO profits up 52%.

[chadders] 19/11/2020 08:44

A couple of good photos in the Arden note showing progress at the Cashew plant. Very pleasantly surprised to see equipment going in already.

Also interesting to note the palm oil numbers in their forecasts haven't changed.

[tradertrev] 19/11/2020 08:40

Would really like to know what discount rate Arden use for their DCF valuation. If it's less than 15% it's not very persuasive.

[chadders] 19/11/2020 08:25

All very positive news.

[outlawinvestor] 19/11/2020 07:56

They completed earlier than expected.

Arden Partners have updated their research note to consolidate Pearlside financials in their projections. They have upgraded their price target as well.

Dekel Agri-Vision has announced the completion of the acquisition of an addition 14.2% interest in the large-scale cashew nut processing project, currently under construction in Tiebissou, Côte d’Ivoire. (The company’s intention to acquire this additional interest was first announced on 3 November 2020). Following completion, Dekel AgriVision now owns a 52% controlling interest in the project, which is on track for first production in Q2, 2021. We have consolidated revenues and earnings from the cashew business into our group financials and reflected the increased 52% profit contribution from the cashew project. As a result, we have increased our target price, based on our DCF valuation to 8.1p from 7.6p, reflecting a market cap of £36.7m, up from £32.2m, and compared to a current market cap of £10.2m. We reiterate our Buy recommendation.

[rivaldo] 19/11/2020 07:12

Good to see the additional stake purchase in the cashew project now complete. Commencement of production remains scheduled for only 6 months' time now.

And note the other reiteration - "our palm oil operations on track to post a material year on year improvement for the second half":

[outlawinvestor] 19/11/2020 05:54

CPO & PKO hit new 52 week high @ $900 & $1210 yesterday.

[rivaldo] 18/11/2020 09:45

CPO futures continue to zoom ahead:



Harvey8888, the acquisition of NorPalm was abandoned ages ago and is irrelevant now.

[harvey8888] 18/11/2020 02:14

Does anyone have any information on NorPalm?

[rivaldo] 17/11/2020 13:51

The CPO price is again up, to $870 - closing in on 2020 year highs of $875:

[harvey8888] 17/11/2020 04:02

Ivory Coast: President Alassane Ouattara met with opposition leader Henri Konan Bedie in an effort to de-escalate tensions (AP) over the country’s disputed presidential election. At least eighty-five people have been killed in election-related violence, according to government figures released yesterday.