Dekel Agri-Vision PLC April Palm Oil Production Update (1921M)
May 07 2020 - 2:00AM
UK Regulatory
TIDMDKL
RNS Number : 1921M
Dekel Agri-Vision PLC
07 May 2020
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ('MAR'). Upon the
publication of this announcement via a Regulatory Information
Service ("RIS"), this inside information is now considered to be in
the public domain.
Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food
Producers
Dekel Agri-Vision Plc
('Dekel' or the 'Company')
April Palm Oil Production Update
Dekel Agri-Vision Plc, the West African focused agriculture
company, is pleased to announce that, in order to provide
shareholders with increased visibility on operations and trading
during the ongoing global COVID-19 pandemic and associated market
volatility, the Company will be issuing crude palm oil ('CPO')
production figures for its wholly-owned Ayenouan palm oil project
in Côte d'Ivoire (the 'Project') on a monthly basis. It is the
Company's intention to revert to issuing production updates on a
quarterly basis, once the impact of the COVID-19 pandemic subsides
and trading conditions normalise.
During April 2020, activities at Ayenouan including Fresh Fruit
Bunches ('FFB') purchasing, logistics and milling operations
continued with relatively minimal disruption. Whilst at present,
Côte d'Ivoire has not seen the levels of disruption more typical in
Europe, the Company will continue to adhere to the prevailing
advice and guidance of the relevant government authorities in order
to help ensure the wellbeing of all its staff and the local
communities in which Dekel operates in.
April 2020 Production
April 2020 April 2019 Increase/
(decrease)
FFB processed (tonnes) 26,556 26,051 1.9%
CPO production (tonnes) 6,143 5,603 9.6%
CPO sales (tonnes) 5,106 5,907 -13.6%
Average CPO price per tonne EUR577 EUR488 18.2%
PKO production (tonnes) 398 313 27.1%
PKO sales (tonnes) 219 313 -30.1%
Average PKO price per tonne EUR610 EUR610 Nil%
PKC production (tonnes) 558 408 36.9%
PKC sales (tonnes) 691 298 132.0%
Average PKC price per tonne EUR59 EUR55 7.3%
Production
-- 9.6% increase in CPO production to 6,143 tonnes in April 2020
compared to 5,603 tonnes produced at the Company's mill in April
2019
-- Strong April performance follows a record March 2020 which
saw 6,314 tonnes of CPO produced (March 2019: 6,178 tonnes)
-- Strong improvement in extraction rate to 23.1% in April 2020
compared to 21.5% in April 2019 reflecting strong oil content in
FFB
-- High quality of FFB and high kernel extraction rates also
contributed to strong like-for-like PKO and PKC production which
increased 27.1% and 36.9% respectively
Sales and Pricing
-- 5,106 tonnes of CPO sold at average prices of EUR577 per
tonne in April 2020 compared to 5,907 tonnes of CPO sold at EUR488
per tonne in April 2019
o CPO demand in Cote d'Ivoire relatively robust compared to
international markets
-- Due to the circa five-week lag for local pricing to reflect
moves in global benchmarks, CPO prices achieved in April 2020 were
materially higher than current global prices
-- Having traded as high as US$870 per tonne on 13 January 2020,
global CPO prices have continued to move lower and currently trade
at US$530 per tonne due to:
o lower demand for food products as a result of extreme measures
around the world to suppress the spread of COVID-19 virus
o sharp fall in crude oil prices, which adversely impacts demand
for biofuel - CPO is the primary feedstock for biofuel
Dekel Agri-Vision Executive Director Lincoln Moore said,
"Operations at our palm oil project at Ayenouan have largely
continued as normal during April despite the challenging trading
conditions caused by COVID-19. We view this as testament to the
effort the team has made over the years to establish collaborative
relationships with the local smallholders who deliver fruit to our
mill for processing, and also the hard work we have put in to
ensure that operations at Ayenouan are as efficient as possible.
During this challenging period our focus will remain on maintaining
stability, while at the same time endeavouring to provide
shareholders with more regular production figures. In line with
this, I look forward to issuing further updates in the coming
months."
** ENDS **
For further information please visit the Company's website or
contact:
Dekel Agri-Vision Plc
Youval Rasin
Shai Kol
Lincoln Moore +44 (0) 207 236 1177
Cantor Fitzgerald Europe (Nomad and Joint
Broker)
David Foreman, Luke Philippou (Corporate
Finance)
Keith Dowsing (Equity Sales) +44 (0) 207 894 7000
Optiva Securities Limited (Joint Broker)
Christian Dennis
Jeremy King +44 (0) 203 137 1903
St Brides Partners Ltd (Investor Relations)
Frank Buhagiar
Cosima Akerman +44 (0) 207 236 1177
Notes:
Dekel Agri-Vision Plc is a multi-project, multi-commodity
agriculture company focused on West Africa. It has a portfolio of
projects in Côte d'Ivoire at various stages of development: a fully
operational palm oil project in Ayenouan where fruit produced by
local smallholders is processed at the Company's 70,000tpa crude
palm oil mill; a cashew processing project in Tiebissou, which is
due to commence production in 2020; and a second palm oil project
in Guitry which is under development.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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