Dekel Agri-vision Share Discussion Threads

[chadders] 22/5/2020 09:13

Interesting comment about minimal interruption due to COVID, similar to DKL first quarter comments and of course better CPO pricing mentioned.

[rivaldo] 21/5/2020 14:18

Yep, it'll be interesting to see if the market picks up on the rise in CPO prices.

With DKL's high season being Jan-June there's time for DKL to benefit from these higher prices. Even now, the CPO price is still higher than it was a year ago.

[outlawinvestor] 20/5/2020 11:02

CPO prices have been firming up from their lows a couple of weeks ago. Still a long way off their January highs but currently pointing up. I guess the biofuel use case is strengthened as crude oil prices recover.

[mr doughnut1] 20/5/2020 11:01

Thanks for the link chadders. It's nice to see a bit of blue for a change. Next monthly update should be on the 10th of June.

[chadders] 14/5/2020 09:54

No market reaction at all to the last two Cashew announcements and the new monthly update which is normal behaviour when investors are fed up of the history of overpromising and under delivering. I see we have now slipped to April 2021 (Q2 2021) which is pretty poor considering the original Q3 2019 target. COVID has had an impact but still no excuse for the dire performance. I'm now a dismayed long term holder wondering what the next let down will be. Rant over

[leoboy] 12/5/2020 13:28

Dekel's Italian manufacturer Oltremare :
certainly know there Cachews !

we will soon be eating spinach salad with cashew kernels :

looks lovely !

[rivaldo] 12/5/2020 09:43

Nice £15,000 buy at 2.375p from yesterday just reported.

[mr doughnut1] 12/5/2020 07:36

I entered all available information from 2018 and 2019 on to a spread sheet on Sunday to see if it would through up any thing that we didn't already know. No surprises it didn't. Revenues for 2019 broadly flat, we have to assume that costs are reducing but not as much as in 2018.At the risk of stating the obvious, this business at the moment, is wholly dependant on the CPO price.Encouraging news this am re cashew project.

[rivaldo] 12/5/2020 07:21

Cashew production update RNS - equipment production has restarted, with the:

"aim of first production commencing during H1 2021. This remains an exciting period for Dekel and the Tiebissou village and I look forward to providing further updates on progress made on the ground during the construction phase of what will be the Company's second producing agriculture project in Côte d'Ivoire."

[chadders] 07/5/2020 08:50

I view it as positive. No red flag as rivaldo points out. Last year break even at average $505 per tonne on average. Given the focus on productivity and efficiency and the increased yield to plus 23% it is fair to extrapolate DKL is running profitably right now. DYOR etc...

[rivaldo] 07/5/2020 07:49

A rather encouraging update - the 5 week time lag in local CPO prices is great news in particular considering it's in the middle of the high production season.

Production is higher year on year, sales lower and CPO sales prices considerably higher, so probably a decent month in normal and relative terms overall. May will be lower (and of course we'll get actual figures at the proper time as this is just a monthly production update).

[pugugly] 07/5/2020 07:28

Production update - Useful but virtually impossible to assess bottom line impact - The fact that management have omitted this factor a possible Red Flag -
Other views?

[mr doughnut1] 06/5/2020 10:51

From Jonco over on LSE.'Requested further updates from Lincoln on how the company is being affected by Covid 19 and received a response.I confirm we have decided to give more regular production updates (than the typical quarterly) in the light of the general uncertainty in the broader markets due to Covid 19. This will most likely take the form of monthly production updates for the next few months then we will reassess. Depending on when weekends fall and wether there is any added complexity in the announcement with other material updates, this is typically around the 10th of each month and will start with April production. Given in May the 10th falls on a Sunday, we will aim for the preceding Thursday, the 7th. Long term we think quarterly is more appropriate but for now we believe the monthly approach is more appropriate.

[pugugly] 20/4/2020 15:51

2 risk factors apparent
* COVID-19 has produced massive drop in vehicle usage and 18 year low in the price of crude oil so potentially very significant drop in use of biofuels as a result of cheaper petrol and less mileage - resulting in downward pressure on CPO prices
*COVID-19 infection rate in Africa still to take off - It will happen (imo) and when it does potentially very significant impact on factory utilisation due to employee sickness -

[mr doughnut1] 20/4/2020 13:02

Obviously disappointed at the share price drop, again on thinly traded stock. If you listen to the Q1 podcast LM does sound a little downbeat.I still maintain my holding.Riv, perhaps you could start a new thread, perhaps include a reference to COVID 19 in the title - I am in the process of watching REAT related.

[rivaldo] 09/4/2020 09:08

Absolutely right chadders. DKL are a company who are forever not quite getting there/suffering from bad luck but whose potential is obvious.

For example, (1) at just the time when CPO prices were peaking, the 2020 high production season started late! So Q2 will show higher production, but prices will have dropped due to the pandemic. And (2) the cashew milling tool manufacturing just happens to be in Italy, so couldn't be in a worse place. And (3) the delay in this production of three months, which ordinarily is neither here nor there, would be enough to miss much of the Feb-May'21 cashew high season.

The good news is that Q1's figures should nevertheless be pretty decent (fingers crossed) given the 28% rise in average prices over 2019, with positive EBITDA.

And operations for both palm oil production and cashew preparations are continuing nicely with minimal disruption.

I can see Aristide Achybrou buying more shares if the price remains at these levels, and I may well do the same. But I suspect patience is the watchword.

[chadders] 09/4/2020 08:45

Still the back drop of almost, nearly, not quite hit the sweet spot. A bit disappointing for me to be honest. This was the opportunity to arrest a near 2 year slide from over 10p to around 2p. COVID has had little impact on production of CPO but Cashew production which has been slipping by a process of stealth is now most probably going to have no impact for another 12 months. Mention of a 4th project is slightly concerning given the overall lack lustre performance of the existing project portfolio.

[mr doughnut1] 09/4/2020 07:40

You were right chadders.
My crude calculations have ,despite the late start to the high season, DKL netting anadditional €1.09m, a 17 percent increase on 2019. Not too bad.

[chadders] 08/4/2020 10:53

Hopefully the Q1 update will be with us tomorrow. I hope there are no disappointing plant outages, or unseasonal weather conditions that spoil what ought to have been high season yield conditions and high CPO prices. Fingers crossed....

[chadders] 06/4/2020 23:27

mr doughnut1, update possibly tomorrow as you say but maybe thursday. Miton have been very supportive for a while now so I'd be surprised if they sold into good news. Likewise AgDevco and Biopalm energy who are both in it for the duration.

[mr doughnut1] 06/4/2020 12:59

Chadders it could be as early as tomorrow.I am finding , at the moment, that some institutions are selling into good news. Let's hope Miton don't take an opportunity to do so.I've got my fingers crossed as well.

[chadders] 06/4/2020 10:00

Well if they stick to the usual timetable of events we should get q1 production update this week. Ought to get news on cashews and possibly an outlook statement. Fingers crossed the q1 record palm oil prices should have benefited us.

[chadders] 01/4/2020 09:22

Decent results from MP Evan's yesterday despite last year's poor CPO prices. Demand outlook clouded by Covid but rapid recovery anticipated..

Alliance News) - MP Evans Group PLC on Tuesday reported a drop in annual profit due to a fall in crude palm-oil prices.

Shares in the palm oil firm were 8.8% higher in London on Tuesday at 506.00 pence each.

In 2019, MP Evans recorded pretax profit of USD12.8 million, down from USD18.3 million in 2018.

Revenue was up, however, rising to USD119.3 million from USD108.6 million.

MP Evans declared a final dividend of 12.75 pence, giving it a total dividend for the year of 17.75p - unchanged on the year before.

Executive Chair Peter Hadsley-Chaplin said: "More than one million tonnes of crop processed, and an improved oil-extraction rate of 23.7%, did not translate into record profits in 2019 only on account of this year coinciding with a period of low crude palm-oil prices."

He continued: "Notwithstanding a background of rising demand, tight vegetable-oil supply and low stocks, the near-term picture is now clouded by the current Covid-19 pandemic. The board remains confident in the long-term demand for palm oil, and as a basic foodstuff, palm oil is well placed to be an early beneficiary of the economic rebound that is likely to occur as the pandemic recedes."

Shares in MP Evans closed 5.0% higher in London on Tuesday at 488.00 pence each.

By Paul McGowan; [e-mail]