Dekel Agri-vision Share Discussion Threads

[rikid2] 25/7/2021 16:37

Lots of work still to do pre production

[mr doughnut1] 22/7/2021 17:59

Forgot to post this yesterdayhttps://twitter.com/dekelagrivision/status/1417779274216579072?s=21

[mach100] 21/7/2021 22:49

Hi Pug.

" As part of the pre-audit, Proforest will undertake a review of Dekel's programmes and management systems and assess the processes and procedures put in place by the Company to manage environmental and social risks and impacts. The Proforest team will also look to identify opportunities for value addition through the adoption of environmental and social improvements and initiatives. This will allow any final recommendations ahead of the formal RSPO audit process which the Company expects to undertake later this year.



In line with the above, a team from Proforest is due on site at Ayenouan in February 2021 (subject to any potential UK and South Africa travel restrictions) and the Company expects to receive a final report in Q2 2021. It is envisaged that the formal RSPO certification will commence as soon as practicable following receipt of the report, subject to the findings. It ought to be noted that the ongoing coronavirus pandemic may impact exact timings."

Hopefully there will be confirmation of receiving the report by the AGM. DKL and deadline are not a good fit so perhaps might have certification by March 2022

[royalalbert] 16/7/2021 10:22

Good time to buy while all is quiet. Cashew nuts in less then two weeks.

All in all much to look forward to.

[rivaldo] 15/7/2021 16:19

Correct tradertrev - accreditation is expected later this year from memory.

[tradertrev] 15/7/2021 08:27

I believe DKL has been through all the audit procedures to join the RSPO (Roundtable for sustainable palm oil) but awaits final confirmation that it has met the criteria to gain accreditation.

[pugugly] 15/7/2021 07:01

Korindo: Korean palm oil giant stripped of sustainability status


May help us as we have (I believe) Green Credentials -

Hastings/rivaldo - As the leaders on this board could you please double check me re Green credentials

[royalalbert] 14/7/2021 22:55

Good interview,

[rivaldo] 13/7/2021 15:38

Cheers, all sounds very positive. Nice 227,000 share buy just now too.

[outlawinvestor] 13/7/2021 08:50

Dekel Agri-vision strong first half for the palm oil business (Interview)

Dekel Agri-vision plc (LON:DKL) CEO Lincoln Moore joins DirectorsTalk to discuss its half year production update for the period ending 30th June 2021. Lincoln talks us through the key points, explains what drove a significant CPO price increase in June, shares his view on palm oil prices, how the company is tracking against Arden 2021/22 numbers and what else investors can expect over the next month or two.

[royalalbert] 09/7/2021 15:05

Fully agree with that HAT.

[here and there] 09/7/2021 09:23

One day,this company will get the fuss it deserves, woefully under valued.

[rivaldo] 09/7/2021 08:47

Arden say Buy today, and have increased their target price to 9.5p:

Extracts:

"Dekel Agri-Vision have published their June production Update bringing about a half year summary, the strongest in the history of their listing. In line with the very impressive high season and pricing environment, we have updated our model to reflect increased average prices secured, resulting in an increased target price to 9.5p and at the current price of 5p this represents a 90% indicative upside."

"On our DCF sum of parts valuation we value the company at 9.5p per share and reiterate our buy recommendation. We believe that when the imminent cashew nut plant commences throughput, the market will recognise the value of strong diversification as Dekel ramps up cashew revenues. The stock yields 23% 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."

[2magpies] 09/7/2021 08:27

Excellent update.

These guys really do know what they are doing.

[yasrub] 09/7/2021 08:02

Certainly encouraging and final news on cashew project to come. With a bit of patience this will hopefully be reflected in MV.

[hastings] 09/7/2021 07:26

Absolutely agree. Great performance and extremely well placed moving forward.

[rivaldo] 09/7/2021 07:18

Terrific H1 update today - June CPO prices achieved were 82% higher than last year! And the €915 average realised price was even way above the "smoothed out" €800 price DKL had been preparing us for in prior RNS's.....plus June production was 13% above last year, with overall H1 production 11% up.

In summary, this H1 alone will "significantly surpass" last year's €1.9m H1 EBITDA - for a £24.8m m/cap company.

Plus there is hugely more stock in hand now compared to last year in all of CPO, PKC and PKO, meaning that DKL's H2 will also be stronger than last year and will continue to take advantage of the current multi-year high sale prices.

Hopefully it's time for a further re-rating now:

[rivaldo] 02/7/2021 08:47

CPO prices are off the recent peaks, but are rising again, and are still at the highest levels since mid-2012.....

[outlawinvestor] 01/7/2021 17:27

AGM scheduled for 05-Aug



CEO Youval Rasin boasted last year that it was DKL's last AGM as a single commodity company with cashews coming online in H1 2021.

Lincoln Moore might be the director facing off to shareholders but Youval is the man on the ground in CI, the project manager, and ultimately the one it appears who took his eye off the ball and missed the Q2 target. He surely must be thinking of his next AGM statement and how he desperately needs to say "job done!"

[rivaldo] 24/6/2021 10:38

Arden have retained their 9.3p target price on their "conservative" model:

"Our outlook remains unchanged for Dekel based on these results, given the immense strain on the sector that the pandemic placed not only in terms of the pricing environment but logistics too. Dekel have shown that their ‘best in class’ operating model is robust. Diversification through the imminent ramp up of their cashew nut plant will drive further shareholder value and reduce concentration risk to palm.

We make no changes to our target price and reiterate our buy rating at 9.3p representing an 97% upside to the current share price. Our model remains conservative given the favourable environment for palm oil prices and visibility of cashew nut revenues."

[2vdm] 24/6/2021 07:39

I agree Rivaldo. This is now becoming a much more definite mid to long term hold for me. The capital ratio isn't strong and I'm not quite sure why there is a bank deposit in the long term assets, but I need to take a deeper look at the figures. On the face of it, I'm very happy

[rivaldo] 24/6/2021 07:20

Agreed, the results are fine in themselves especially considering the pandemic.

But it's the prospects for the current year and going forward which really are outstanding and take priority here:

"Together with Ayenouan we have a defined path in place to treble group revenues to c. EUR60million within the next two to three years. Arguably, this is a conservative estimate as it does not take into account our plans to add a third commodity to our portfolio and also the joint venture agreement we have with Green Enesys regarding the potential development of a 30MW solar PV plant and a 5-6MW biomass plant using feedstock from Ayenouan. The possible biomass plant would also add to our already strong ESG credentials, which are expected to be independently validated later this year following the completion of the RSPO certification process, which could in turn open up export markets for our palm oil."

"The momentum behind the business continues to build in the current year: our palm oil operations are on course to post another improved set of financial results for the first half; the cashew purchasing programme has commenced in anticipation of the plant at Tiebissou commencing processing in the coming weeks; the post period end long term debt refinancing has extended the maturity of our debt profile and strengthened our balance sheet; and the planned completion of the RSPO certification process for our palm oil operations later this year will potentially highlight the attractiveness of our project and open up export routes.

Takeaways from each of the above neatly sum up what we at Dekel Agri-Vision are focused on building: a highly cash generative agriculture group; a diversified portfolio of growing revenues streams; a strong balance sheet to support future growth; and a business with best-in-class ESG credentials among its peers."

[royalalbert] 24/6/2021 07:16

Fairly good set of results.

[rivaldo] 18/6/2021 12:44

From the FT - a "mini supercycle" is predicted for agricultural prices for the next few years, in particular soyabeans which bodes very well for CPO prices too....



"Top agricultural traders predict a ‘mini supercycle’
Markets for corn, soyabeans and wheat expected to remain strong over next few years

Agricultural commodities are at the start of a “mini-supercycle” with prices expected to be boosted for several years by demand from China and for biofuels, according to some of the world’s top traders.

Executives from Cargill, Cofco, Viterra and Scoular said this week that the markets for corn, soyabeans and wheat will remain strong over the next two to four years...

....“We’re certainly seeing a mini supercycle,” said David Mattiske, chief executive of Viterra, majority owned by Glencore, told the FT Commodities Global Summit. “We’re in a demand driven environment with the themes of growing population, growing wealth, people consuming more. And added into that we’ve got increased demand for plant based fuel.”

Sustained higher prices will be a boon for farmers who have felt the financial strain of several years of stagnant crop prices...

.....According to Alex Sanfeliu, head of Cargill’s world trading unit, the two big harvests a year for corn and soyabeans — one in the US and the other in Brazil — means supercycles in grains and oilseeds tended to be shorter than other crops, but he predicted a bull market for the next two to four years. “The characteristics of the super cycle are there,” he said......

....Meanwhile, biofuel demand, which was driving up soyabean and soya oil prices, is “unprecedented”, according to Paul Maas, chief executive of US agricultural trader Scoular. As governments push for a reduction in fossil fuel usage, many are increasing the amount of biofuels blended into petrol. “The increased demand is real and we’re on the front end of seeing how that all plays out,” said Maas.

Despite the enthusiasm, Gary McGuigan, head of global trade at Archer Daniels Midland, added a note of caution. “We’ve seen quite a correction in prices over the past weeks or so,” he said, adding that while the demand dynamics were “definitely changing” it was too early to call a mini supercycle.

One of the big uncertainties was China. “Out of all big demand driven areas in the world, China is the most opaque and the most hard to predict,” he said."

[2vdm] 16/6/2021 08:07

Yes, but that was in 2017 and a lot has happened at DKL since then.