Dekel Agri-vision Share Discussion Threads

[mach100] 09/3/2015 10:21

Thanks Graham. I was wondering why the sudden spike in volume. It also explains why the there was a huge spike, and although sells are vastly outweighed by buys the MM's are happy to dole these out at less than the initial spike.

[grahamstown] 09/3/2015 08:39

RHPS Tip (06-03-15)

[mach100] 07/3/2015 14:04

Thanks SE. DKL has been buffeted of late. There is a lot of potential good news to come. Land expansion in Guitry and Ghana, the third hub and the production figures. The price of oil has bounced back and I suppose CPO prices might also improve given that they have fallen so far. I was pleasantly surprised by how much Palm Kernel Oil can be sold for. It is quite a premium to CPO so makes the new facility very attractive indeed. It is the high season now so we should get good production figures. If we can beat 32000t this year I will be very pleased.

[s_e] 06/3/2015 18:17

Palm oil market gets cooking as deal making heats up

By Andrew Neil March 06 2015, 1:17pm To make the versatile commodity, used for cooking, cosmetics and biofuel, natural forests are converted to oil palm plantations.To make the versatile commodity, used for cooking, cosmetics and biofuel, natural forests are converted to oil palm plantations.

South East Asia’s palm oil giants are cooking up expansion plans and London-listed firms look to be the perfect ingredient.
This week, one of Malaysia's largest conglomerates, Sime Darby, wrapped up a £1.1bn takeover for NewBritain Palm Oil (LON:NBPO) – paying an 85% premium for its shares.
It comes as Indonesia, the biggest producer, is imposing stricter foreign ownership laws on agriculture and less land is available in Malaysia.
To make the versatile commodity, used for cooking, cosmetics and biofuel, natural forests are converted to oil palm plantations.
Malaysia and Indonesia produce close to 90% of world exports, but space is running out.
New Britain’s 135,000 hectares in neighbouring Papua New Guinea proved too tasty to resist.
They add to Sime Darby’s total land bank of almost one million hectares, spread out over five countries.
The Malaysian giant now plans to delist NBPO in London and float it in Kuala Lumpur or Singapore
Following the deal, Finncap analyst Raymond Greaves wouldn’t be surprised if more London-listed firms head east.
“New Britain was a large independent player, albeit based out of Papua New Guinea,” he told Proactive Investors.
“The premium paid for NBPO's assets reflects the fierce competition for developed oil palm projects.
“Sime Darby paid around US$25,000 dollars per hectare; the average is US$18,000-US$19,000.”
A host of London-listed players now look very appealing, according to Greaves, given that they trade at a discount to major players in Asia.
Potential targets include AIM’s MP Evans Group (LON:MPE), REA Holdings (LON:RE.) and Anglo-Eastern Plantations (LON:AEP).
MP Evans, like rival REA Holdings, has previously considered a listing in Jakarta - partly to mitigate the risk of Indonesia’s 30% foreign ownership laws of plantations.
Shares in each have risen over the past month and jumped on news of the New Britain deal.
When markets first heard of the New Britain takeover back in October, shares in DekelOil (LON:DKL), an Ivory Coast-focused palm oil producer, also rose sharply.
Another catalyst may be the fact that, like most commodities, palm oil has been under pressure of late.
Vegetable oils pricing is closely correlated to crude, albeit they have historically traded at a premium.
A metric ton of palm-oil costs US$639 at the moment. The same amount of Brent crude, roughly nine barrels, costs US$540.
Brent crude is still worth almost 50% less than it was six months ago, despite recent gains.
The significant decrease has contributed to a fourth year of falling crude palm oil (CPO) prices, as a result of weak exports and record levels of production for competing vegetable oils.
There was a bumper harvest of soya beans - an alternative to palm oil - in the US, which has also hurt demand.

[mach100] 23/2/2015 15:38

My good friend Rugs on Lse has cracked the Da Vinci code of the small buys of recent times. Hr reckons that the seller has exited this morning. Very weird though why someone would buy 67 shares in small parcels and then exit. More mysterious than a crop circle!

[mach100] 20/2/2015 13:32

Got a summary Tom? I don't have access. There has been really weird trading patterns today of buys of 1,2,3 and 12, and 14 shares. 26 share trades in total which is high for DKL but very unusual size trades. What is the 800m based on? Land prices?

[tomboyb] 20/2/2015 10:56

ALNC - Interview

INTERVIEW: DekelOil Assets To Be Worth USD800 Million By 2022

[mach100] 17/2/2015 11:10

Hi Cyfran. Nice to see you still here. There were unusual trading patterns yesterday with net sells of about 9000 quid but it still rose. CPO is not 705 dollars and DKL get 10% premium in their agreements plus have no transport or insurance costs. I think the key is production as they have buyers in place for all their produce. You were right previously to signal concern about supply and the number of smallholders they have. They did well in January- traditionally a low month- by doubling production so the key will be the milestones and maintaining at a minimum the increased production. It would be nice to see the seller(s) who has been offloading fairly chunky trades staunched so the price can start to recover. We should have news this Friday or next on Biopalm as well as proposed expansion.

[cyfran101] 16/2/2015 23:25

To be fair their costs are <$500 and current CPO price is $688 (down from $988 when they commenced).

If they are still break even then that's still positive.

Tough building a business when all your models assumptions are being pulled around.

Still watching.

[mach100] 30/1/2015 15:10

I was initially disappointed by today's update.N+1 Singer had forecast 14 million and today's update predicts 10 million of revenue. It has also gone from Ebitda positive in the first month to just about break even. So I wasn't surprised by the fall. Its seems to have attracted back some buyers. There is also the news on Guitry, Ghana and the Kernel crushing facility to come. The video interview affirms that higher production can be maintained. If so 32000t for 2015 could be met or beaten. Are you still here The Accountant? There have been hefty sells recently so I hope that wasn't you, the Accountant. Any thoughts on today's update?

[proactivest] 30/1/2015 14:45

Video interview with executive director Lincoln Moore


Lincoln Moore, executive director at DekelOil (LON:DKL), discusses the group’s latest operations update and how the palm oil company has managed to double production. ‘We expect this to be a very profitable six-month period,’ adds Moore.

[lazygun] 30/1/2015 12:20

beaufort securities has today released a speculative buy note on dekel

[mach100] 29/1/2015 10:48

No sign of an update yet as promised. The last day of trading is tomorrow and DKL do like Friday updates. Not sure what the last director appointment has brought to the party. If the African funds are buying in, then the Share price is not reflecting it. If they are not, I would question what she is doing. It has been very disappointing to think we were at 2p at one stage. Granted the price of CPO is correlated to Crude Oil but to be at this level is disappointing in the extreme.

[mach100] 15/1/2015 15:12

Good update today and if BIOPALM decide to 50% fund the kernel crushing facility then DKL will have a million pound plus left over from October's fund raise. This will be used for their expansion plans which in turn should strengthen the company. I like the way the deal is structured and in fact despite debt being a concern, I would like the company to go it alone given the payback potential and limited capex requirement. The fall in the euro has also helped.The January production update should be out on Friday or next week but in advance of this it is good to see the price rise today.

[mach100] 08/1/2015 13:20

It has had quite a buffeting recently and I think the real spread now is 1p to 1.05p. I hope when we get the production update and the news on Guitry and the kernel crushing facility that there is renewed buying. Looks very undervalued at the moment especially in the light of growing demand in India and the monsoon in Malaysia which has cut production. The big soya production in the USA in the first part of 2014 didn't help CPO prices but the price seem to be recovering now.

[mach100] 18/12/2014 11:17

Hi swear nice to see you on here and even better that you have confidence in the company with a sizeable holding. You got a good price there although there has been a fall today. I think DKL can double bag from here if its plans come to fruition and supply can be ramped up. But it has been a frustrating 8 months where the share price has been pummeled in spite of good newsflow and being EBITDA positive already.

[swearengen] 18/12/2014 06:49

No, not a sell - an agency cross (mine). The future looks good!

[mach100] 17/12/2014 13:01

Large sell today. Quite a disappointing run since March with the share price under pressure. There are some important milestones to be reached in the next few months. I hope the production update due in January can set a light under this,

[mach100] 09/12/2014 15:00

Good update today! We just need to get the production figures to match. I am surprised there was a small slew of sellers. A lock-in is expiring this month. I hope they are not dribbling these onto the market. It fell 4% today on sales of less than 9k.

[mach100] 04/12/2014 09:56

Very positive update today.Over time an estate of almost 7000 hectares has got to be very valuable. Biopalm's support means that it can be fast-tracked which is key to bolstering the share price Although DKL has come far in less than 9 months of production, I suspect the risk of investing in a fledgling company is deterring some investors. 2015 should be transformational with expansion, tax free profits on a full year's production, an extra revenue stream from q4 in kernel crushing and no debt to repay apart from the 10% coupon. Clearly DKL believe they can put their income to work more profitably than if they used it to pay down debt. Nice to see they maintain the ethical approach of not displacing local small holders.
Plenty to like today!

[mach100] 03/12/2014 11:03

N+1 Singer has also commented after yesterday's update.

Dekel Oil N+1 Singer fair value of 2.26p on the share.

The group continues to upgrade its logistics ahead of the key March to June harvesting season, said broker N+1 Singer.
“The growing global demand for palm oil makes West Africa an exciting investment opportunity,” said the broker, which has a fair value of 2.26p on the share.
“The climate is good and the region does not have the land issues that are now constraining many of the Asian countries,” said analyst Andy Brown, who notes the group’s existing facilities are producing and already generating positive EBITDA.
“Many of the large global producers are taking a more active position in the region which underpins our conservative valuation on the stock.”
Shares added 2.13% to 1.20p.

Nice to see a conservative estimate of 2.26p. A lot of upside here but still some hoops to be jumped through.

[mach100] 02/12/2014 12:59

Does anyone know if the October to December season in the Ivory Coast is equivalent to March to June in terms of supply and production? The low harvest season runs from July to September. They did 2105t per month in the high season of April to June this year. Would October to December be equivalent? You still here the Accountant?

[mach100] 02/12/2014 11:26

Well we just had a buyer am70. It might propel this share upward. Still a lot to be proved but a lot of the building blocks in place.

[amoore70] 02/12/2014 11:22

Beaufort Securties are tipping this now as a strong speculative buy