Dekel Agri-vision Share Discussion Threads

[rivaldo] 15/6/2021 12:29

My brief thoughts are that:

- DKL has already more than doubled since last November, so it's already gone somewhere rather nicely....
- Arden have a 9.3p target price, so lots of upside still to go
- then there's the cashew project starting imminently which is transformational
- plus news of a third commodity coming soon
- and with CPO prices at multi-year highs and forecast to remain there for some time

[hrvey8888] 15/6/2021 10:08

There is an epic super cycle on oil palm … and LM Is kinda over promising and under delivering… hope am wrong but this microcap is going nowhere. Sellers at 5pence. Lots of scope to disappoint. Micro broker with no real institutional power going nowhere kids. Best hope would be to take it private or sell it. Thoughts ?

[tradertrev] 15/6/2021 09:42

Don't think the minor delay to the cashew project will come as a surprise to anyone following this thread. In the grand scheme of things it's immaterial anyway. But I agree that one has to take LM's commentary with a small pinch of salt. Looks like most people do that, otherwise the share price would have been a lot higher than this yesterday and then fallen further today.

[rightnellie] 15/6/2021 08:50

Pleased that cashew factory is progressing towards operation. However, don't feel LM has been particularly honest over the last 6 months about progress. He has ramped the Dekel story somewhat hiding bad news - I suppose that's his job. Still positive about the future and await rerate for this share when investors finally cotton on to how undervalued it is.

[basem1] 15/6/2021 08:41

Have we any profit projections for the cashews as yet ? Not seen or read anything

[rightnellie] 15/6/2021 08:41

Thanks for the link leoboy -an informative watch about cashews.

[2vdm] 15/6/2021 08:10

I agree Rivaldo. Well done to LM and his team. The cashew arm of the business will provide revenue during the low palm oil/wet season and we have yet to hear about the next project which the company intends to introduce, widening its base and so making it a more diverse and less vulnerable investment. I have been adding as cash permits but I wonder how long before the DKL story starts to become more widely known.

[rivaldo] 15/6/2021 07:24

Cashews update - all going extremely well except for a small delay on the final equipment shipment which should be immaterial. Good to see that purchasing of the raw cashews for production is also on target.

First production "is only a number of weeks away" now.

[leoboy] 14/6/2021 21:57

interesting watch about Cashews :

[here and there] 14/6/2021 06:44

Arden really need to update their note. It's based on €600 CPO.

[ptolemy] 11/6/2021 12:08

News of cashew processing plant commissioning ought to follow soon and this will be a bigger and higher margin business than CPO.

[hastings] 10/6/2021 10:56

Also happy with the update and nice to see a lift in the share price

[cheshire man] 10/6/2021 10:23

Very pleased with the PU this morning,,,,,and Arden's TP of 9.3p,,,,,,,what's not to like :-)

[chadders] 10/6/2021 08:41

Very positive update. DKL doing all the right things. June should be stellar given the 2500 tonnes already in the bag. H1 record numbers looking locked in to me.

[rivaldo] 10/6/2021 08:10

Arden reiterate their Buy and 9.3p target price today - over 90% upside.

They've left forecasts unchanged for the moment, but summarise:

"Dekel Agri-Vision has announced its May Production Figures. They come against a backdrop of incredibly strong CPO pricing for the YTD. Average CPO price per tonne for the month was up 43.1% at €774 per tonne. We retain our strong buy rating with a 94% upside to our target price."

"Our model now appears conservative given the headroom in average selling price for the last five months, though we leave it unchanged and await the next production update. On our DCF sum of parts valuation we value the company at 9.3p per share and reiterate our buy recommendation. The stock yields 20% FCF in 2022 on our conservative forecasts with increases in cashew processing utilisation to come online later this year which will drive value. Reiterate strong buy rating."

[rivaldo] 10/6/2021 07:20

Cheers OutlawInvestor, excellent news re cashews.

Looks like a good production update today too. FFB deliveries, CPO production and sales prices especially are all up materially on last year. In particular:

"Dekel remains on course to post a material uplift in its H1 financial results compared to 2020."

"H1 2021 financial results on course to materially surpass H1 2020's EUR15.4m revenues; EUR1.9m EBITDA; and EUR0.4m net profits"

May's CPO sales are down year on year - but this is because DKL have been taking a patient approach to maximise sales prices, leading to a very large subsequent sale of 2,500 tonnes (presumably in June) at "materially higher" prices. June's figures should therefore look storming.

I think we'll get a further cashew update in a week or two when DKL can formally announce site completion and production commencement.

Very happy with that.

[pugugly] 10/6/2021 07:16

H1 2021 financial results on course to materially surpass H1 2020's €15.4m revenues; €1.9m EBITDA; and €0.4m net profits



Should be a blue day today

[outlawinvestor] 09/6/2021 17:09

Making good progress at our Tiebissou cashew project.

Operations should commence in Q2 2021, the cashew project will become Dekel's second producing asset alongside our established palm oil operations at Ayenouan.

[ptolemy] 09/6/2021 16:20

"a fair amount of competition..."

As I understand, in addition to their 100% owned estates, long-term harvesting contracts are in place with over 5,000 smallholders, covering approximately 17,000 hectares of existing oil plantations. Under the terms of the agreements, Dekel agreed to acquire on an exclusive basis 100% of the FFB produced.

I also recently heard that the Biomass idea will share the location of the cashew processing plant. Can anyone confirm?

[chadders] 07/6/2021 09:57

Well it's news week for DKL, whether it's just a CPO production update or a combined cashew and CPO update we'll soon find out. Interesting though either way.

I expect there's a fair amount of competition for the smallholder ffb crop, driven by the sky high price of CPO. Hopefully initiatives such as Medicare and fertiliser programmes will have secured a decent supply for DKL.

[tradertrev] 07/6/2021 09:42

Maybe we'll get a nice photograph of an Ivorian politician cutting a ribbon. That should be worth a penny on the share price.

[ptolemy] 04/6/2021 14:58

Chart suggests price could move on positive news...

[rivaldo] 04/6/2021 08:53

Let's see if the cashew update is on Monday. Perhaps DKL are waiting for a specific event to happen - hopefully the facility completion - before they issue the news.

Then another good monthly CPO production update - with CPO prices still extremely high - and the company will really have some momentum.

[mr doughnut1] 03/6/2021 14:28

We know from the interviews with LM, that current PO production is similar to previous years. So hopefully no surprises there.
Let’s hope the tests with the milling equipment are getting 80 + percent of those cashews out whole.
Would love to see LM add to his holding.
I am really tempted to add to mine.
Edit- decided to correct the spelling mistake, that’s dyslexia for you.