Dekel Agri-vision Share Discussion Threads

[2magpies] 08/2/2021 09:31

Oh my: seems like they like cashews even more than I do!!

[2vdm] 08/2/2021 08:07

Yes good news Riv. At 10K tonnes it's break even on cash flow, so as it scales up with extra shifts, it will start pumping positive cash.

[rivaldo] 08/2/2021 07:49

RNS - good to see confirmation of the increase in the cashew project stake to over 70%.

Encouragingly, the partner/vendor want to take around 35% of the consideration in DKL shares rather than cash. Not only is this indicative of their confidence in DKL, but it also saves DKL paying out cash from the the recently raised funds.

And there's also confirmation that the Q2 launch of the cashew project remains on track.

[tradertrev] 04/2/2021 15:35

My PimaryBid shares turned up in HL just after 12.00hrs

[rivaldo] 04/2/2021 09:28

The CPO price still moving up - at $1,060 as of Tuesday, almost at the $1,070 seven year highs:

[basem1] 03/2/2021 16:07

No good to know mine Haven't appeared as yet

[tradertrev] 03/2/2021 14:59

Have any of those who subscribed to the Primarybid offer received their stock in broker accounts yet? Not at HL when last checked.

[2vdm] 03/2/2021 07:52

Now in the harvesting season, so hopefully an update in the next few weeks, as well anews on progress of the cashew processing plant.

[rivaldo] 02/2/2021 14:12

The CPO price is roaring back up to near the 7-year highs, at $1,050 as of Friday:



and CPO futures are also rising again.

[rivaldo] 02/2/2021 13:33

Miles McNulty has highlighted DKL today as one of several "UK micro-/small-cap pure-play producers, whose underlying commodities are at/near multi-year highs".

He has quite a following, so we may well find some new interest here:

[cheshire man] 02/2/2021 09:17

Took some more recently on this drop :-)

[outlawinvestor] 01/2/2021 20:16

If raising £3.5m within a couple of hours is not a vote if confidence I don't know what is!

There is a lot of debt on the balance sheet already with access to €9.3m more. Too much debt, too much risk, if things go sour shareholders will be kaput! In my view the leverage ratio has been and still is too high. Injecting more equity into the mix is the responsible thing to do. And equity for capex is normally considered value accretive since shareholders have something to show for it unlike equity for opex/working capital.

I won't read too much into the price action. It probably would have done the same without the placing... just market makers and traders dancing together as they do. The directors and institutions who injected £3m and many of the PIs who invested £500K are not looking for immediate gains and know there is no free lunch.

[mach100] 01/2/2021 18:05

Inevitable really trader. The company are fond of saying that the issuing of shares is a vote of confidence. The fall in the share price since the placing suggests short-term it does not good for confidence. DKL issued nearly 4m shares to buy 2% extra in the cashew business at 3.45p per share. Even now those shares almost 50% higher. Would have been cheaper to borrow money to pay up and avoid dilution.

[rightnellie] 01/2/2021 13:27

The Company intends to use up to £1.1m to acquire a further 16.7% interest in the large scale raw cashew nut ('RCN') processing project at Tiebissou, Côte d'Ivoire (the "Cashew Project"), which will increase the Company's interest in the Project to 70.7%.

From their Twitter page

[rivaldo] 01/2/2021 07:40

Encouraging commentary from REA's results this morning:



"After an initial firm start to 2020, CPO prices fell away from $860 per tonne, CIF Rotterdam, on 1 January to a low for the year of $510 per tonne in May. Prices then staged a steady recovery from the middle of the year through to the end of 2020 to close at $940 per tonne. These stronger prices have continued into the first weeks of 2020 with CPO, CIF Rotterdam, currently at $1,030 per tonne.

The higher prices now prevailing are materially beneficial to the company...."

"CPO markets should be supported over the coming months by a general reduction in supplies of vegetable oils combined with continuing demand growth as economies start to recover from the set-backs of 2020. In particular, CPO production and stock levels are likely to be constrained by the impact of reduced fertiliser applications by smaller producers in response to weak CPO prices in the first half of 2020."

[rivaldo] 29/1/2021 13:47

Arden retain their Buy and 8.2p price target in a new note today.

Worth noting these paragraphs in particular - their forecasts are looking rather undercooked given (1) CPO prices being almost 40% higher than forecast and (2) and the further acquisition of a higher stake in the cashew project:

"With palm oil prices trading at c. US$1,000/MT (€825/MT) - compared with our current conservative 2021E full-year average palm oil price forecastof €/600MT - and Côte d'Ivoire entering its high-volume season, the outlook for Dekel Agri-Vision’s palm oil operations looks positive."

"We are not currently changing our forecasts but believe that as and when the company completes the acquisition of the additional 16.7% interest in the cashew nut project, this will be accretive to our forecasts and our valuation."

[2magpies] 29/1/2021 11:03

these are shrewd directors!

[tradertrev] 29/1/2021 08:11

My first use of PrimaryBid - all went smoothly....so far.

[2vdm] 29/1/2021 07:58

Agree on all points Riv and looking fwd to the Feb production update.Looking like a very good year for DKL

[rivaldo] 29/1/2021 07:16

Excellent - the placing was oversubscribed and so £3.5m has now been raised.

Also good to see the directors themselves subscribing for £150,000 of shares. The subscribing directors now own over 24% between them, so their interests are aligned with everyone else's.

[rivaldo] 28/1/2021 22:39

Terrific to see the company able to raise funds at 5p - it would have had to have been 1.5p-2p only a couple of months ago.

And to top it off, in case anyone missed it from tonight's RNS:

"Production Update

Further to the 'Full Year Production Update' for the Company's palm oil operations at Ayenouan announced on 11 January 2021, positive momentum has been maintained and the January production update, due on or around 10 February 2020, is likely to show a material improvement in production on January 2020. This material improvement is in line with expectations due to the peak harvest season commencing later in 2020 as announced on 9 April 2020. Further updates will be made by the Board as appropriate."

[dropside] 28/1/2021 21:54

Closed at 6:30, very fast for Primary Bid. Must have been big demand on retail offer; Or on the main placing and completion of that forced the early close of the retail offer.

[chadders] 28/1/2021 20:32

Looks like offer closed now on Primary Bid, if so it signals healthy demand for the shares.

[basem1] 28/1/2021 16:56

Yes you can I have just had an e-mail

[basem1] 28/1/2021 16:40

Placing Can you transfer your shares from primary bid to your own share account ? TIA