Dekel Agri-vision Share Discussion Threads

[mach100] 15/11/2014 12:54

RT12 starts on Monday and we may get some news on the directions of Indonesia and Malaysia. It is in KL and both Malaysia and Indonesia have issues looming around future CPO production.

The theme for RT12 is “Sustainability: What’s Next?“,
which intends to explore the various efforts, challenges and trends within the sustainability sphere especially with regards to sustainable palm oil.

[mach100] 07/11/2014 16:59

Thanks touchtype for your message. i don't subscribe here so can't reply but your messages and comments are always welcome. We have a fairly chunky buyer of late in late trades so maybe someone is building a stake here. Ye s_e I am hoping this will reate once production ramps up, they open Guitry and buy some land in Ghana. It has come a long way but the share price has stalled. We need more milestones and production to unlock the value inherent here.

[s_e] 07/11/2014 08:14

Hi Mach .. could be , DKL are doing all the right things and value is being added which will reflect in the share price soon enough , i will also be buying more on any dip...

[mach100] 04/11/2014 22:09

Thanks for posting s.e.. I have a feeling DKL are courting a suitor from Lincoln's interview. Not sure why exactly as they DKL are very early stage. But I do believe Lincoln when he says that any buyer would have to pay a multiple of today's share price as DKL has put a lot of money inot getting where they are now. 2.9p would be very welcome to me with a break even price of 1.52p. I might buy more on a dip, if my Amed comes in

[s_e] 04/11/2014 14:32

DekelOil Gives an attractive payback period says Optiva Securities
DekelOil completes a £1.5m placing, which will fast track the construction of the kernel plant to meet the growing demand for palm kernel oil and animal feed stock in the Cote d’Ivoire. DekelOil, who are the operator and 51% owner of an established and vertically integrated palm oil project in the Cote d’Ivoire, are now producing commercial quantities of Crude Palm Oil (CPO). DekelOil is now in a position to generate sustainable revenues and cash flow.

DekelOil completes a£1.5m placing will be used to construct a 60tn/day kernel crushing plant: DekelOil has raised £1.5m through a placing of 87.2m new ordinary shares and a subscription of 35.7m ordinary shares at 1.25 pence per share. The funds will allow DekelOil to construct a 60tn/day kernel crushing plant, which will boost the profitability of the Ayanouan project. The Company will be able to produce palm kernel oil and supply the local market enabling Dekel to extract higher value from its palm processing operation. The plant is expected to become operational in Q4 2015. The Kernel crushing plant will have a low capital expenditure with a payback period of just 12 months based on revenues of €2.7m on a full year’s operation in 2016. Discussions are underway with regards to securing a local off take agreement.

Siva Group; its JV partner on the project will be invited to match the funds raised (£1.5m) required for the kernel crushing plant. In the event that Siva Group does not participate in the funding it would imply that DekelOil shareholders will have a 100% ownership in the kernel crushing plant.

Favourable Market Dynamics: In our view with suitable land for planting on the decline it is becoming more expensive for larger palm oil companies to operate in South-East Asia. This will force palm oil developers to look elsewhere and West Africa will become an attractive area for strategic development. It is important to note that Sime Darby, a diversified conglomerate involved in the plantation business has made a £1.1bn offer for New Britain Palm Oil (09/10/2014), which highlights the push by the world’s largest palm oil groups into sustainable production of palm oil. This follows Asian Plantations acquisition six weeks ago. Also, KL Kepong a palm oil developer operating in Malaysia has recently taken a controlling stake in Equatorial Palm Oil. This means that DekelOil is the only LSE quoted palm oil developer in West Africa not already controlled by a major palm oil player.

Valuation: If we assume that DekelOil has a 100% ownership in the kernel crushing plant and based on a full year’s operation in 2016 the kernel plant could generate revenues of €2.7m and profits of €1.7m, which gives an attractive payback period of 12 months. Optiva Securities estimate profits of €3.61m in 2016 net to DekeOil as things stand today and with the addition of the palm kernel plant total profits should be €5.3m. If we use the average Price to Earnings ratios below (equally weighted) it would imply a fair price of 3.3 pence per share. If the JV partner participates it would imply a fair price of 2.8 pence per share. In our view the recent financing at 1.25 pence per share is an attractive entry point for investors and does not give any value to the potential development of the Guitry project, which is another project that could support a 60t/hr mill in due course. In addition the recent takeover of New Britain Palm Oil at an 85% premium by Sime Darby makes DekelOil the only LSE quoted palm oil developer in West Africa not already controlled by a major palm oil player.

[mach100] 01/11/2014 13:14

hxxp://www.stocktube.com/video/dekeloil-s-moore-on-becoming-a-takeover-target

Broker research notes and upgrades coming. I think DKL will be very much in-play for a takeover once they are established. The 2p warrant figure of half the recent options will hopefully mean they want a figure north of that although I concede the board have a lot of warrants at nil cost already. This year's production in 9 months is going to be 16000t. They will be looking to double that next year which is still only half capacity. Interesting times ahead!

[mach100] 31/10/2014 08:21

Hi Talk. Nice to have you here. To be fair to DKL they do imo have an ethical approach. They have worked with the government but also small shareholders and must be creating a lot of employment there. In fact one of the risks of investing here is the fact they rely on quite a few small stakeholders for supply. It would have been easier to deal with just one supplier but DKL have shown an interest in promoting small stakeholders. It is also not in their interest to have land taken by fraudulent activity as they could be subject to legal action and with a debilitating effect on the share price
I think there has been about 2 million shares bought recently so the board are doing something right. They have also been running this company since 2009 I think and now we are seeing the fruits of their labour.

[mach100] 29/10/2014 16:55

Relatively large buys daily ( almost 21k before clos in one trade) and yet the price is being squeezed down. The MM's must have a lot of stock stashed somewhere as the bid price has remained the same. Very strange price action in the face of all those buys recently!

[mach100] 28/10/2014 18:55

Thanks for posting BMU. It might explain some of the rise as well as perhaps buying by Beaufort security clients. 6.4 million shares traded today including some 2 million sells which is great for liquidity. Very interesting interview and 1 million euros a month for a £20m NCAP company is fantastic revenue. We can also add in a near tripling in revenue for the kernels with the new crushing facility which Lincoln says will pay for itself within a year. I guess that 1m euros is during the high season March to June and october to December. We are looking at 15000t production this year and 35000t in 2015 which is still only half capacity. Plenty of growth to come!

[blackmarketunit] 28/10/2014 14:35

Interview: Executive Director Lincoln Moore – DekelOil plc on takeovers and future output...
28 October, 2014

[mach100] 24/10/2014 14:39

I see there was a proposed limitation ownership of 30% proposed last month in Indonesia in its new plantations law. Although this was dropped, it provides that these limitations will be set out in regulations to be issued within two years of its enactment. Looks like we will see uncertainty for foreign investors.

There is a national interest element to this new law taking into account the type of plants, the scale of the plantation business, and conditions specific to the location of the plantation. It seems to be following a similar path to the 2009 mining law which forced a five year sell-down and ultimately left 49% maximum for foreign shareholders.

With this uncertainty I wouldn't be surprised to see some of the majors turn to West Africa. It would be timely for DKL to build up a head of steam by 2016 and today's news will certainly help.

N+1 singer has 2.26p fair value price for DKL.It reckons the kernels will go from 180 euros per ton currently to 440 euros with the new facility.

A slight drop today on sales but I think if good production figures can be achieved in the overdue update of the three months to the end of September, then we can certainly see DKL pushing on. I am very pleased with today's update and plans to be in operation within 12 months.

[mach100] 24/10/2014 08:38

Fundraising. All looks very positive to me. I hate dilution normally but this looks quite positive to me. It says open to new and existing investors but I assume not us small PI's. I would be very happy to dig deep as this share looks interesting! No fall so far in the share price which is unusual in a discounted placing.

[mach100] 21/10/2014 16:24

There seems some buying interest now. I hope the persistent seller is finally cleared as really this has been really buffeted and undeservedly so in my opinion. 3 weeks into the high season and with a bit of luck some of the know-how learned from the low season has been incorporated. I wonder how the most recent appointment with a history of dealing with hedge funds is getting on? You still around, The Accountant? I will email you shortly.

[mach100] 20/10/2014 17:36

Thanks BMU. I think that was a fairly chunky buy this afternoon. I hope buyers are back here as we are in the high season and some important milestaones can be achieved. It has been quite a roller-coaster in 2014 with large buyers and large sellers. I would love to see this move past 1.52p which would put me back in profit.

[blackmarketunit] 13/10/2014 14:09

Dekel Oil PLC (DKL) Retest Of 1.8p Plus Seen By The End Of 2014 - DKL News
- Today, 2:09 PM

[blackmarketunit] 10/10/2014 13:41

Dekeloil boosted by favourable dynamics amid New Britain Palm Oil bid
- Today, 1:41 PM

Yesterday's news of a takeover bid for New Britain Palm Oil (LON:NBPO) by Malaysian giant Sime Darby gave West Africa focused DekelOil (LON:DKL) a boost.

[mach100] 09/10/2014 14:37

Great news today from NBPO with a T/O at a substantial premium. I envisage DKL eventually being taken out too given the shortage of land etc and the lack of a tie-in already with a major Asian producer. DKL was marked up ins sympathy today on no trades. I hope potential sellers will hold on after this and see the huge potential of DKL. Let us hope the low season has been a learning curve for DKL and they can hone their production and logistic techniques. Really promising!

[s_e] 22/9/2014 18:13

SMALL CAP SHARE IDEAS: Dekel's move to palm oil production expected to generate rapid growth
By IAN LYALL, PROACTIVE INVESTORS
PUBLISHED: 12:33, 22 September 2014 | UPDATED: 12:33, 22 September 2014

[mach100] 10/9/2014 15:02

In until at least 1.9p but think this can get to 3p or 5p if it can ramp up production and expand operations. Debt is a concern but it is expected to have free cash flow of 12.5 million euros. Some geopolitical issues make this even more attractive. Very much off the radar with very few posters Mike but most are confident of good returns over the long term. Be glad to hear your views Mike. I think those 1.48p are buys incidentally and we have had a stream of chunky sells which halted a spike in the share price There is a roadshow next month and dkl will be there so it would be good to meet any posters from here.

[113mike] 06/9/2014 12:24

Bought in yesterday arvo..could be a good story devleloping here.How many peeps are in here and for how long?be interesting to know

[cyfran101] 06/9/2014 01:00

At present I'm principally concerned with the Ebola virus. West Africa (principally Sierra Leone and Liberia) is struggling to contain it and it's the fear of contagion that's keeping workers from the fields.

I hasten to add that Ivory Coast is unaffected. Zero cases reported and the borders are closed from Liberia (the outbreak is centred to the west of Liberia too) but something to keep an eye on.

[mach100] 02/9/2014 08:02

Hi drop and cyfran. Dang, I wish it was me but no such luck. We have a 10am seller these days and that is not me either. the interims will be between 20 and 27th and hopefully the low season will afford an opportunity to get to grips with the supply issue. ｓhares mag did a good article last week but has spurred no real buying (at least the printed edition). It will be interesting to see if there are any purchasing ahead of the interims. There are some interesting developments in Indonesia around land use which may prove beneficial to DKL. Nice to see you post again Cyfran as you flag up some interesting issues.

[cyfran101] 29/8/2014 22:45

Oh by the way Mach is correct, DKL's strain yields in 2-3 years rather than the 4 year average.

[5ros] 28/8/2014 22:13

DKL results due by 20th Sept.