Dekel Agri-vision Share Discussion Threads

[113mike] 03/8/2017 07:31

All sounds good though and will hang on in there in the hope that the share price finally gets going up soon. Div is nice too!

[113mike] 03/8/2017 07:29

rns ...agm summary just reconfirming what is already known.

[rivaldo] 03/8/2017 07:28

Extremely positive AGM statement today. Note in particular against the £35m m/cap:

"As a result of the record first half sales performance, H1 2017 EBITDA is expected to be materially higher than H1 2016's EBITDA of €3.1m."

[113mike] 30/7/2017 12:48

Anyone received any details yet of the script dividend shares?

[113mike] 26/7/2017 12:13

They keep repeating and reiterating this and the share price keeps doing nothing and I'll keep holding... Oh well, perhaps one day it'll be 23p-ish?

[rivaldo] 26/7/2017 11:37

Beaufort Securities retain their Buy and 23p target today on a P/E of 7.3 falling to just 5.7....

"Our View: Offering shareholders an opportunity to capitalise on its valuable and proven management experience! DekelOil’s stated strategy is now to transform itself into a leading West African-focused palm producer. Replicating that already gained from turning Ayenouan into a highly cash generative operation, DekelOil sees the opportunity to move forward its 100%-owned Guitry project as compelling.

Indeed, Guitry prospectively has the potential to become a much larger and more profitable operation than Ayenouan. Having proven its first vertically integrated model, the Board is determined to move the concept forward by building a portfolio of other vertically integrated palm oil projects in West Africa. Having established how to de-risk a successful operation, which then plays an important role in the local economy, the business model can attract interest and support potential partners, financing vehicles and banks with regards to providing development capital for Guitry.

While it is likely to fund an initial portion of future development from internal cash flow, the majority will likely be obtained by introducing a project partner, in a similar manner to that seen with Ayenouan. While these discussions have commenced with no partner yet selected, this strategy will provide comfort to shareholders who, while applauding the Board’s expansion strategy, do not wish to see the Company’s recently declared progressive dividend strategy impacted.

Indeed, in projecting DekelOil producing as much as £2.7m free cashflow during 2017E, followed by around £6m the year after, DekelOil is seen providing shareholders with dividend yields of 1.7% and 2.0% for the two periods, while also rapidly reducing balance sheet debt. Beaufort considers yesterday’s news ideally demonstrates management willingness to move its ambitious planning forward without exposing shareholders to a raised risk profile.

With the shares trading on forward earnings multiples of 7.3x and 5.7x respectively, Beaufort retains its Buy recommendation on DekelOil, repeating its price target of 23p/share."

[shakeypremis] 25/7/2017 16:31

I think it may be slightly premature to value that extra production just yet. That's my point.

You are right though, a potential suitor will have to take in to account the new project.

[rivaldo] 25/7/2017 11:38

That's missing the point - the market will value further operations at Guitry in advance of their actually coming into operation. That's the point of the stock market. Any company investing for the future will have their operations assessed and valued accordingly. DKL is no different.

And any potential purchaser of the company - which is likely where this will end up - will certainly take into account such potential.

[shakeypremis] 25/7/2017 08:23

It apparently takes around 3-4 years to grow and palm and have it produce fruit for oil extraction, so the extra production from this project is not going to come in for a long time. It's going to cost money initially with no return.

[113mike] 25/7/2017 07:18

Yes, great news. Will it be enough to kick start the re rate though?

[rivaldo] 25/7/2017 07:15

Excellent news today - Guitry is going ahead and will provide a second production operation.

I do like DKL's risk-averse approach in bringing in partners, limiting their own initial funding exposure, getting long tax exemptions etc.

And there's this comment: "We believe Guitry in time has the potential to become a much larger and more profitable operation than our successful project in Ayenouan".....

[ntv] 20/7/2017 11:00

i warned several times about this management team (going back to rights issue)
news only goes to the " the special ones"
all other shareholders treated like dirt on their shoes

[113mike] 19/7/2017 20:57

Been out all day. Just got in. Nice to see a blue day at last! Let's hope it continues! Onwards and upwards?

[chadders] 19/7/2017 18:02

Thanks for the Beaufort note btw rivaldo.

[chadders] 19/7/2017 18:01

I'm overweight here but it is such a compelling investment case I'm inclined to add more. Current valuation is ludicrous. No advice intended.

[greenroom78] 19/7/2017 11:14

I have added a few more this morning. I've now got a few more than I want but the reaction to yesterday's positive statement was rather odd (and frustrating) so I'm hoping to take advantage. I can understand sell on news if it has been rising prior to the news but sell on positive news when it has already lost 20% from the recent high seems odd.

[rivaldo] 19/7/2017 08:15

Beaufort retain their Buy and 23p target price.

Hmmm. Given a current year P/E of just 6.8 falling to 5.2, plus lots of potentially big news flow from the likes of Guitry and Norpalm, it's extremely tempting to top up here:

"DekelOil Public Limited (DKL.L, 11.38p) – Buy

The operator and 100% owner of the profitable and vertically integrated Ayenouan palm oil project in Côte d'Ivoire yesterday provided a production update for the half year ended 30 June 2017. Management confirmed a 22.1% increase in product sales (including CPO, Palm Kernel Oil and Palm Kernel Cake to €18.8 million (H1 2016: €15.4 million) is expected to be reported in the half year to 30 June 2017, primarily due to stronger CPO pricing resulting from higher global prices and increased CPO storage capacity at the Project (from 5,000 to 8,000 tonnes) which enabled the Group to improve local pricing terms. Record like-for-like CPO production was recorded in Q1 2017, which was followed by curtailed production at the Mill in Q2 due to now rectified mechanical issues during May and June. H1 production of CPO was therefore marginally lower at 26,947 tonnes (H1 2016: 28,550 tonnes).

Our View: Further excellent progress! Management has confirmed its expectation for another set of record half yearly figures, in terms of revenue, EBITDA, and net profit after tax. The mechanical issues which prevented the Mill from being fully operational during Q2 and resulted in marginally lower year on year CPO production in H1 was frustrating, but the plant has since been restored to full operational capacity.

As well as stronger international prices, DekelOil’s strong financial performance is also due to the commissioning of an additional storage tank which assisted in maximising pricing during the period. This means that last year's first half EBITDA of €3.1 million is set to be exceeded and that Ayenouan is proving to be a highly cash generative platform upon which a leading West African focused palm oil company is now being built.

This experience, also provides the Board with confidence to move forward with plans to develop a second project in Côte d'Ivoire at Guitry, with discussions continuing regarding the proposed acquisition of Norpalm, a producing palm oil project in Ghana. Norpalm owns some 4,000 hectares of mature palm plantations and operates a 30 tn/hr mill which also purchases FFB from local producers. As such, it sells 15,000 tonnes of crude palm oil into the domestic Ghanaian market, and also operates a PKO press which produces c.2,000 tn of PKO in the Ghanaian market. Given that the discussions are still ongoing, there can be no guarantee that it will proceed. The Board intend, however, that it would be financed through a combination of DekelOil’s existing cash resources, new equity partners at project level and debt financing. The potential acquisition, if it were to proceed, is not expected to constitute a Reverse Takeover, and so publication of a prospectus should not be required. The Group will make further announcements in due course.

In the meantime, based on Beaufort’s forecasts of DekelOil producing 2017E and 2018E operating profits of €6.9m and €8.3m respectively, leading to attributable profits of €5.3m and €7.0m, the shares trade on Price/Earnings multiples of just 6.8x and 5.2x.

This remains much too cheap, particularly give shareholders can expect to collect dividend yields of 1.8% and 2.0% for the two years. Beaufort retains its Buy recommendation on DekelOil Public Limited with a price target of 23p/share."

[empirestate] 18/7/2017 17:59

Thankfully got rid of the remainder of my shares today, this certainly counts as a major under performer and in hind sight I was always concerned about a potential equipment black out. Should be worth another look just before half year results imo, but until then this could near 10p considering there may be a lack of management confidence as they didn't report the problems earlier, oh dear. All the best to holders.

[113mike] 18/7/2017 17:02

Sp very disappointing today. DKL very much under the radar. Need broker note update and confirmation of tp.Sold 25k shares earlier and went into AST. BLU also doing well and UKOG also good atm.Still have 460K DKL shares left and holdi ng out for the re rate that must surely happen by year end! GLA!

[chadders] 18/7/2017 09:04

We've now got a very solid base to kick on from. News on Norpalm and maybe some director buying would provide a fillip that it needs right now.

It's crazy that this hasn't appreciated at all from the 1 for 10 consolidation a while back. It's a very different business and DKL now own 100% of the project.

Any broker notes out?

[greenroom78] 18/7/2017 08:17

Some large block sells about first off.

[rivaldo] 18/7/2017 07:48

DKL will likely have made say €3.5m EBITDA in H1 alone, against a £34m m/cap - and this despite the production issues which have now been resolved ready for H2 and which may well be compensated for.

Which sounds good and cheap to me.

[empirestate] 18/7/2017 07:47

pre market does suggest emphasis on sales values so let's hope there is a positive response.

[greenroom78] 18/7/2017 07:47

It explains the recent weakness though. Shouldn't they have RNSed the shutdown as it now looks like insiders sold it down. Positives are it should be a record H1, prices are high and we are back to being fully operational.

[113mike] 18/7/2017 07:36

Fingers crossed then!..they dropped the share price yesterday by a quarter and it's pre market this morning up by a quarter..lets hope it can kick on from here...!