Dekel Agri-vision Share Discussion Threads

[royalalbert] 07/7/2023 08:32

Expecting a good update here on Monday, palm oil figures should show a material increase in my opinion and cashews on a upwards path.

Let's see.

[tradertrev] 03/7/2023 18:42

Palm oil prices have fairly zipped up in the past few days!

[rivaldo] 28/6/2023 15:45

WH Ireland retain their 9.5p target price, and have ever so slightly reduced their forecasts given cashews being slightly behind.

They now forecast 0.4p EPS this year and 0.9p EPS next year, for a P/E of 8.3 falling to 3.9.

Extracts:

"FY22A results: palm oil profits held up well; cashews bedding in; expects strong ‘23

DKL’s FY results today show that its palm oil business generated a highly creditable performance in a year in which harvests were unusually low, while the group also succeeded in bedding in the new cashew operation. The latter made a negative contribution in FY22A, but is now well-positioned to become cash-generative in the course of FY23E. DKL is an increasingly diversified agricultural group focused on West Africa (Côte d’Ivoire), with activities which include a fully operational, sustainably sourced palm oil business and a growing cashew processing operation.

The company’s achievement in generating €4.6m of EBITDA in its palm oil business despite unprecedentedly low volumes reflects high pricing but also a proactive and efficient model focussing on local producers and meaningful export markets. With strong volumes in the palm oil high season in recent months, and with cashew machinery now fully installed and progressing towards target capacity, significant
benefits anticipated this year are supportive of our forecasts and 9.5p fair value assessment."

"Forecasts / valuation

DKL reports its main business (90%-plus of revenues), palm oil, on a monthly basis, giving an unusual degree of transparency. We have seen a sequence of strongly
improving volumes – combined with the already strong pricing, these should ensure an excellent year for this business. The bedded in cashew operation offers significant upside. With FY22A cashew numbers marginally behind forecast (equipment delays, coupled with prudent accounting), we are shaving our FY23E and FY24E forecasts modestly on a precautionary basis – recognising upside risk given the potential for palm oil to outperform in the current year.

We retain our 9.5p fair value assessment and see upside to the shares."

[harry the haddock] 28/6/2023 12:55

and down it continues to go........

[amelio] 28/6/2023 11:35

Let’s see what the interims have to say but I’m expecting a huge uplift in H1 EBITDA and full year forecast.
Loan repayment terms sorted and Cashew to add significantly to the bottom line.
Accumulation stage down here as future news flow likely to be only positive for foreseeable imo.

[riskvsreward] 28/6/2023 11:15

They have long lost credibility! Always overpromise and severely under deliver. One day hopefully it will come good with some fair wind of the palm oil and cashew market and harvest. Until they can then show investor money it won’t be trusted no matter what they now say, as can be shown each recent press release only led to price going down.

[amelio] 28/6/2023 08:54

This trades back at 5p levels upon interims imo. I can hold for a couple of weeks.

[2magpies] 28/6/2023 08:45

The 'outlook' for DKL is excellent!

It has been for many, many years.

[royalalbert] 28/6/2023 08:22

2M love the subtle deramping.

[amelio] 28/6/2023 08:11

Lovely time to accumulate while it sits down here. The H1 23 results will put a rocket up the share price.
Read Outlook statement - strong future as the business matures and cashew production / sales bolster bottom line.
Soon to be a £2-3m net profit co. imo making the current market capital well undervalued.

[2magpies] 28/6/2023 08:10

Indeed, Rivaldo.

However, DKL have always been optimistic about the future.

'Tomorrow we shall achieve great things' .. that's their Corporate motto, it seems to me.

Unfortunately, it's always 'tomorrow'!

Quite possible they will chuck in a fundraise (or two) before any significant profit is made.

But I could be wrong, and shall be happy to be so.

[rivaldo] 28/6/2023 07:18

Today's 2022 results are mostly notable for some snippets about current trading (and the proof reader who approved the appalling grammar should be shot!):

- there's an encouraging statement that "we remain on track to deliver a record financial performance in 2023":

"Outlook

Looking ahead, with the Palm Oil Operation currently experience a rebound in production quantities and prices continuing to remain high the short term outlook for this operation is positive. In addition, with the Cashew operation is now transitioning towards a consistent and growing financial contributor to the Group's performance, we remain on track to deliver a record financial performance in 2023"

- it's also great to see progress re the RSPO certification, which looks like it's finally going to happen this year

- and cashews also remain on track:

"We expect a material improvement in production in 2023 and strong progression towards the Cashew Operation becoming a positive contributor to group profitability"

"The Directors firmly believe that, given time, the Cashew Operation has the potential to surpass the Palm Oil Operation in terms of profit contribution to the Group. Our approach to the development of the Cashew project allows for significant capacity expansion within a short period. With a nameplate capacity of 15,000 tonnes per annum ('tpa'), the plant's production can be increased by 50% at no additional cost by adding a third shift, thus reaching a production capacity of 15,000tpa. Moreover, with a capital expenditure of EUR5-6 million, the mill's capacity can be doubled to 30,000tpa, which the Directors estimate could generate approximately EUR35-40 million in annual revenues based on current prices"

[chadders] 27/6/2023 09:00

Half expected the 2022 finals this morning, maybe Thursday now?

[rivaldo] 21/6/2023 14:23

Meanwhile the CPO price has increased nicely in the last 3 weeks from the $855 low (which was still higher than all CPO prices from mid-2014 to 2021) to $950 now.

[royalalbert] 19/6/2023 19:51

No matter what the next production RNS will be interesting due to seeing how the Cashew nut operation is performing included with the 1H palm oil figures.

But before that we should have a RNS regarding the 2022 final audited results, 2021 figures were released on the 23rd June.

The full year production report released 10 Jan 2023 stated

"that the expected 2022 financial results of the Palm Oil Operation will still be among the best performing years."

This was in despite of low production volumes which were not normal for the area.

If a decent profit was made with these low production numbers then 1H 2023 will be looking very good with 3 very good production months and hopefully June to follow.

[2magpies] 19/6/2023 11:42

So, they used to make unending announcements about how market prices were sky high, but there wasn't enough crop! (linked? duhh!!)

Now crop is abundant, and production is rising. But prices have softened.

Well, Dr. Dekel-Obvious: could the two phenomena be linked??

Please: do try not to groan, or to laugh!

[lyceeuk] 19/6/2023 11:01

Dreadful share perf for the last couple of years, the reason is the company is not run
for shareholders.

[chadders] 15/6/2023 21:24

Dreadful share perf for the last couple of years. Thankfully my crypto is going well.....er hang on a minute :D

[tradertrev] 15/6/2023 10:09

In the past, El Nino has been good for CPO prices as it impacts SE Asian production more than West Africa

[akebono42] 15/6/2023 08:52

Been lurking on here for many years and am a long time holder of DKL. Certainly remember the heady days of double digit share prices and a dividend!Which leads to my thought on the share price. Think realistically until shareholders start to see returns in the form of dividends or even share buybacks, I don't think these shares will move much. I tend to think the barrier is around the 6p mark due to DKL using that level when issuing new shares to buy assets.The other challenge on the horizon I was thinking about recently is the El Nino weather event, which can bring drought conditions to West Africa. So will be interesting to see how that might impact future production in the next two or three years.

[chadders] 13/6/2023 20:41

I think we need the backstop of last years finals. Confidence in the Co and the management has been shot to pieces.

[rugs3] 13/6/2023 13:44

A few trades today but I really do not understand why the pricing is back to where it was ahead of the good May results. Lincoln ids doing the managements job pretty well but what is Optiva doing to promote the company. sfa by the look of it....

[ptolemy] 13/6/2023 13:05

Equally important, why no trades? Management really do need to get out there and raise the company's profile.

[royalalbert] 13/6/2023 08:12

Why drop the price on no trades, fishing?