Dekel Agri-vision Share Discussion Threads

[chadders] 03/9/2020 10:07

Reflected here also

[outlawinvestor] 02/9/2020 23:02

IMO, DKL should correct upwards sooner rather than later (barring unexpected negative news of course!) to reflect the CPO price trend.

It will be a whole lot more difficult to link the share price to commodity prices in a multi-commodity future.

-edit-
BTW, the CPO futures data in the link above is from the MCX (in INR).

[outlawinvestor] 02/9/2020 22:15

Re post #1396 - forgive my rambling despite efforts to articulate!

My view is that the board is spot on with their diversification strategy.

Capital investment is better spent for now in other cash crops where Cote d'Ivoire is a leading producer but a weak processor, crops like cashew and cocoa where the processed product is much higher value than CPO. Entering the cashew processing market with a large scale plant in Tiebissou is a meaningful statement of ambition IMO.

Guitry should remain lower priority because of the time lag required to develop a palm plantation - 3 to 4 years to first yields, about 8 years to peak yields. I would rather put the capital (plus investment for new Guitry mill) towards a large scale cocoa processing plant targeting returns in a much shorter time frame.

I think however there is room for improvement in Ayenouan. I'm not sure much ever came of the ambition to drive PKO production by sourcing kernels from those mills unable to process them. I suspect also that the logistics operation isn't performing as desired resulting in lower (quantity and quality) FFB collection.

It's not surprising the board gets the blame for the share price slump even though there are many factors involved some of which is outside their control. I think they are a competent board with deep industry, investment and strategic experience. The AgDevCo financing and investment for example would not have happened but for Andrew Tillery's involvement.

[outlawinvestor] 02/9/2020 20:38

Cashew mill construction progress video posted on twitter:

[tradertrev] 02/9/2020 10:08

and yet shares close to all time lows!

[chadders] 01/9/2020 14:02

After a little blip, CPO back above $700 again. August average price should see a big rise on the July number for DKL.

[chadders] 01/9/2020 09:33

More upward movement

[chadders] 29/8/2020 10:27

25th September last year so should be around then for the interims. August monthly update sometime in the next fortnight.

[hrvey8888] 28/8/2020 18:08

Do we have a date for the next results ?

[chadders] 28/8/2020 16:28

Another producer reporting much improved results due to CPO price increase. DKL should report H1 in the next two weeks.

[mach100] 27/8/2020 13:29

Chadders I should have included a request for you to keep posting as your posts are insightful and worthwhile. Down almost 10% today sadly with some large undeclared trade most likely to be the catalyst.

[chadders] 26/8/2020 17:04

Thanks for that Mach100, agree totally

[mach100] 26/8/2020 16:28

Chadders, the company need to start delivering. The news is falling on stony ground. Simply because they are unable to capitalise on their core asset. This is a 90% club share. Taken down from 20p after consoidation down to 2p now. I hope this can come good in time. We have had seven years of lean cows under this board. If they can fatten the herd in the next seven years maybe the previous seven can be forgotten. But the Board don't inspire that they can achieve anything substantial in share price rises in the near term. They have a producing asset in CPO and a mill but it seems the Board have busied themelves everywhere else except their core asset. More outcome and less output please!

[chadders] 26/8/2020 16:15

Stacks of good news and not a single comment- good or bad. What a waste of time this bulletin board is.

[chadders] 26/8/2020 12:52

From AEP results this morning.

Revenue for the six months to 30 June was $123.1 million, 26% higher than $97.9 million reported for the same period of 2019. The Group's gross profit was $21.8 million compared to $5.3 million for the first six months of 2019. Overall profit before tax for the first half of 2020 increased more than ten fold to $16.8 million (after biological assets movement) against $1.6 million for the corresponding period in 2019. This was attributed mainly to higher CPO prices and production.

[chadders] 26/8/2020 09:46

Good news the first equipment for the cashew plant has cleared customs.

More good news concerning the CPO rise and the impact for producers..

[chadders] 21/8/2020 09:04

Higher CPO prices are having a big impact out there...

[chadders] 19/8/2020 08:22

Good news regarding the cashew project announced. Second shipment of equipment on its way.

[chadders] 17/8/2020 14:45

Back up to $715 per tonne. We were receiving dividends the last time we averaged above $700....

[2vdm] 17/8/2020 08:25

Thanks Outlaw. I found this bit interesting:
Processing: The country has 29 processing plants and an installed capacity of 109,500 tonnes in 2017, but the factories operate at less than 50% capacity. In 2018, 68,417 tonnes were processed, 40,000 tonnes of which were processed by Olam alone. In addition to Olam there are 15 medium-scale transformers, with a production capacity ranging from 2,500 to 10,000 tonnes and seven small-scale transformers that have a production capacity of less than 2,500 tonnes.

Processing includes peeling, shelling and grading. Kernels are classified into one of 26 grades according to size, colour and condition, this can be done either before or after the peeling process. Of the 14 regions where processing takes place, the three with the highest capacity are Gbêkê, Poro and Kabadougou.

Although less than 10% of RCN produced is currently processed, there has been a steady increase in the quantities processed locally over recent years. In 2018, the quantity of kernels produced domestically rose by 53% to 68,417 tonnes, compared to 44,708 processed in 2017. As well as being a sharp uptick in absolute volumes, this represents an increasing share of total RCN output, which grew by 11% over the period. The authorities intend to raise the transformation rate of RCN to 50% by 2020 and have an annual target of 300,000 tonnes of processed kernels by that year. According to some estimates, the transformation of RCN into kernels adds 35% more value to the final product.

[outlawinvestor] 15/8/2020 16:38

The political situation in Cote d'Ivoire is heating up following the President's decision to stand in the October elections for a third term. The narrative moved from mumblings and grumblings to fatal protests. One to watch.

hxxps://africa.cgtn.com/2020/08/14/bus-torched-in-cote-divoire-as-election-tensions-run-high/

hxxps://www.africanews.com/2020/08/13/ivorians-protest-ouattara-s-third-term-run/