Dekeloil Public Limited Investments to Increase Profitability at Ayenouan (0285P)
November 14 2016 - 2:00AM
UK Regulatory
TIDMDKL
RNS Number : 0285P
Dekeloil Public Limited
14 November 2016
DekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food
Producers
14 November 2016
DekelOil Public Limited ('DekelOil' or the 'Company')
Investments to Increase Profitability at Ayenouan
DekelOil Public Limited, operator and 85.75% owner of the
profitable and vertically integrated Ayenouan palm oil project in
Côte d'Ivoire (the 'Project'), is pleased to announce three key
capital investments focused on increasing the Project's
profitability and further de-risking its operations ahead of the
peak harvesting season expected to run from March - June 2017.
-- Acquisition of an Empty Fruit Press to extract additional
crude palm oil ("CPO") from empty fruit bunches - expected to
increase the total CPO extraction rate by at least 0.5 percentage
points, thereby improving the Project's margins
o Capital investment of EUR485,000 - order placed with Modipalm
and Sri Sinaco Engineering Works and the press expected to be
operational in time for the peak harvesting period
o Anticipated payback of under a year
-- Construction of an additional 3,000t tank to increase overall
CPO storage capacity to 8,000 tn - gives the Company flexibility to
choose when to sell its CPO enabling achieved sales prices to be
maximised
o Capital investment of EUR390,000 - civil work to commence
imminently and take approximately 5 months to complete ahead of
2017 peak harvesting season (March - June 2017)
-- Investment in an additional back up boiler for the Project's
60 tn per hour CPO extraction mill (the 'Mill') to minimise
downtime in the event of a break-down. While this is unlikely given
the existing machinery is new and state of the art, the Board deems
it prudent to de-risk this component
o EUR0.2 million deposit paid on EUR1.25 million capital
investment - anticipated to be operational within 17 months
All investments will be funded internally from excess funds
following the recent debt refinance and internal cash resources of
the Project.
DekelOil Executive Director Lincoln Moore said, "These capital
investments, which have been in our sights since the Mill became
operational, are expected to improve operating margins, de-risk
operations and provide more flexibility with sales pricing going
forward. We look forward to benefitting operationally and
financially from these initiatives in the near future. Our ability
to make these investments, while preserving our ability to return
capital to our shareholders in the form of dividends, is reflective
of our strong balance sheet and our commitment to proactively
managing our operations to improve performance and potential risks
on behalf of shareholders."
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.
** ENDS **
For further information please visit the Company's website or
contact:
DekelOil Public Limited
Youval Rasin
Shai Kol +44 (0) 207
Lincoln Moore 236 1177
Cantor Fitzgerald Europe
(Nomad and Broker)
Andrew Craig +44 (0) 207
Richard Salmond 894 7000
Beaufort Securities Limited
(Broker)
Zoe Alexander +44 (0) 207
Elliot Hance 382 8300
Optiva Securities Limited
(Broker)
Christian Dennis +44 (0) 203
Jeremy King 137 1903
St Brides Partners Ltd (Investor
Relations)
Elisabeth Cowell +44 (0) 207
Frank Buhagiar 236 1177
Notes:
DekelOil Public Limited is a low cost producer of palm oil in
West Africa, which it is focused on rapidly expanding. To this end,
it has an 85.75% interest in one of the largest oil processing
mills based in Côte d'Ivoire, which has a capacity of 70,000 tons
of CPO. Feedstock for the Mill comes from several co-operatives and
thousands of smallholders, however it also has nearly 1,900
hectares of its own plantations. Furthermore, it has a world-class
nursery with a 1 million seedlings a year capacity.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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