Dekel Agri-vision Share Discussion Threads

[mfhmfh] 05/10/2017 12:35

Q3 production update was on 13.10.16 last year. May have one towards end of next week.

[rivaldo] 05/10/2017 10:47

Likely only 2-3 weeks until the Q3 production update, so there should be decent news flow upcoming.

[basem1] 04/10/2017 13:32

A 100k buy did it. Online Qoutes all day have been 12.19p. Let's see if the 12p is sold into.

[rivaldo] 04/10/2017 13:25

This is the second day in a row when an early markdown has been reversed. Blue by the close hopefully.

[greenroom78] 04/10/2017 11:18

11p would see a breakdown in the bottom rising trendline which wouldn't look so nice on the chart. A turn up from here posting a higher low would look a lot nicer.

[basem1] 04/10/2017 10:13

Watching and waiting, hoping for 11p ??

[greenroom78] 04/10/2017 10:11

One day rodders, one day...

Shame the house broker can't earn their stripes and find who the seller is and re-home the stock.

[rivaldo] 03/10/2017 14:26

Cheers re the podcast link s_e. Highlights:

- second boiler construction almost complete, close to zero down days expected next year
- news re Norpalm expected before the end of the year.
- three asset bases [Ayanouan, Ghana, Guitry] would potentially be worth in the "hundreds of millions which dwarfs current market cap"

Which says it all :o))

[basem1] 02/10/2017 16:16

There's clearly an overhang here, why don't folk just wait for it to clear ? I suppose if no one bought it would never clear ? I'm waiting to buy but in a position to wait. Exciting stuff !!

[s_e] 02/10/2017 12:39

Lincoln Moore, Executive Director of Dekeloil (AIM:DKL) Podcast
therumtrader October 2, 2017

hxxp://www.share-talk.com/share-news/lincoln-moore-executive-director-of-dekeloil-aimdkl/

[basem1] 02/10/2017 08:33

Obviouly not. Gmd were though, front page apparently.

[113mike] 01/10/2017 18:03

Anyone know if these are updated in the latest SCSW?

[chadders] 29/9/2017 13:09

Let's hope so. The inertia following consistently excellent results is becoming all too familiar.

[rivaldo] 29/9/2017 09:52

Good to see the buying price increasing today to 12.45p - perhaps the MMs are finally running out of stock.

Hopefully SCSW will mention DKL in tomorrow's issue, or if not then next month's.

I gather that the CEO will also be interviewed today on Sharetalk about the results, prospects etc, so this may bring in further attention.

[113mike] 28/9/2017 09:35

Thanks Riv for that. One wonders what will be the catalyst for the re rate to begin when the share price has remained so stubbornly flat.Perhaps the NGL acquisition will give it a kick start when it's agreed/announced?2018e prospects seem great, imho, so will continue to hold for the eventual gains that must surely come our way + the divs also!

[rivaldo] 28/9/2017 09:01

Beaufort Securities today retain their 23p target.

They forecast 1.77p EPS this year and 2.42p EPS next year - those are P/E's of 6.9 falling to just 5.1.....

"Our View: Impressive stuff! The first half of 2017 saw DekelOil acquire 100% of Ayenouan, further strengthen its balance sheet, pay out a maiden dividend and report record sales and profits. There is clear momentum behind the business, both at the operational and corporate level and Beaufort expects this to be maintained going forward. Having proven its business plan, management is now keen to roll-out its vertically integrated model, which includes a state of the art nursery, mill, and company-owned estates, elsewhere in the region.

At Guitry, operations have already formally commenced and the Board remains in discussions to acquire an interest in Norpalm Ghana Limited ('NGL'), a vertically integrated palm oil producer in Western Ghana which has approximately 4,000 hectares of mature palm plantations under ownership and produces some 15,000 tonnes of CPO a year from a 30t/hr mill. In addition to the revenue it generates from selling this produce into the domestic Ghanaian market, NGL also operates a palm kernel oil press which produces approximately 2,000 tn of PKO. There can be no guarantee current discussions will result in DekelOil acquiring NGL, but they nevertheless demonstrate management's confidence in its ability to replicate success already achieved.

Having proven both the operating model and ability to implement it, shareholders should be reasonably confident of further progress as DekelOil seeks to transform itself into a leading West African palm oil producer. Indeed, Beaufort considers DekelOil is capable of producing as much as £2.7m free cashflow during 2017E, followed by around £6m the year after. Importantly also, yesterday's update demonstrates management willingness to move its ambitious planning forward without exposing shareholders to a higher risk profile.

Based on 2017E and 2018E revenues estimates of €33.1m and €36.8m, delivering fully-diluted earnings 1.77p and 2.42p respectively, the shares trade on forward multiples of just 6.9x and 5.1x respectively while offering yields of 1.6% and 1.8%.

Beaufort retains its Buy recommendation on DekelOil, while repeating its price target of 23p/share."

[greenroom78] 27/9/2017 14:40

Thanks, I don't subscribe anymore, vaguely remember someone mentioning DKL coverage.

[greenroom78] 27/9/2017 13:19

Thanks Rivaldo

We could do with institutional buying. P/E of 4 with growth is crazily unervalued, sort of thing Simon Thompson likes at IC, has he covered us?

On a similar note, didn't SCSW cover these a while back. Wonder if this update is early enough for them to mention again in this month's issue?

[113mike] 27/9/2017 13:04

Yep..and a lot of continuous buying please!

[nurdin] 27/9/2017 13:03

We need the sentiment towards the company to improve..dont know what will trigger that.

[rivaldo] 27/9/2017 12:27

Sara789456 has posted this incomplete update from Optiva Securities elsewhere - hope she doesn't mind me copying it.

Optiva have adjusted their target price to 30p (from 34p), and see 36.3p with Guitry included - DKL are now on a ridiculous forward P/E of just 4 at 12p:

"We believe DekelOil still offers investors a compelling and a deep value investment opportunity; DekelOil trade on a forward FY18 P/E of 4x on double-digit EPS growth. We have adjusted our price to 30p from 34p, and if the Guitry project is successfully implemented, our target price increases to 36.3p.

Summary

We believe DekelOil still offers investors a compelling and a deep value investment opportunity; DekelOil trade on a forward FY18 P/E of 4x on double-digit EPS growth. We have adjusted our price to 30p from 34p, and if the Guitry project is successfully implemented, our target price increases to 36.3p.

H1 2017 Summary:

� Total CPO Production 26,957 in H1 2017

� 22.6% increase in revenues to �19.6m (H1 2016: �16.0m)

� 19.4% increase in EBITDA to �3.7m vs (H1 2016: �3.1m)

� 33.3% increase in Net Profits to �3.7m (H1 2016: �1.8m)

� 0.17p dividend to be paid on 4 September 2017

In our view, the management continue to deliver robust revenue, profitability and cash growth despite of the one-off mechanical issues. The issue resulted in a loss of production of about 3.5/4kt of CPO. This was due to blockage in production flow in the kernel processing pipe and equipment failure within the de-oiling tank. These issues have been rectified, but we are taking a conservative view in H2 and FY18, which is reflected in our adjusted forecast shown below.

Expansion Projects:

The real excitement in the H1 interims comes from the management decision to formally expand into Guitry; a 100% owned second-project based on Cote d�Iviore and interest in Norpalm Ghana Limited, a vertically integrated palm oil producer in Western Ghana.

Guitry:

Guitry is situated 160km north west of Abidijan, and 240km west from the current project in Ayenouan.

DekelOil has the right to develop;

� 24,000Ha brownfield land

� Establish a plant nursery facility with the capacity to product 1m palm plants per annum

� 30 tonnes per hour Mill

The management has already ordered nursery equipment, completed the Social & Environmental Impact Assessment and water survey. We anticipate development costs of �200-250k in the next 12 months, which will be funded through the Ayenouan project cash flows.

Guitry Economics:

The current Ayenounan 60t/h Mill had a capital cost of �15.5m, of which 92% was funded by debt. We will assume the new 30t/h Mill will have a capital cost of approximately �10m and will begin operations in 2020. We also assume that DekelOil will secure 90% debt funding and minority equity partner for 49%, a similar strategy to how they commenced the Ayenounan project in 2013/14. At a CPO price of �500/t we get a conservative project valuation of �...."

[greenroom78] 27/9/2017 10:38

L2 doesn't tell you that. They are on the book at 12.25p for 10k (which is NMS) but this is a MM only stock and not SETS so no tellings how much they have. They are currently selling at 12.15p so my guess is there is a reasonable overhang.

[petewy] 27/9/2017 10:23

How much stock Teide or is that a stupid question.
Miton has a 16% stake which attracts me.