May Palm Oil Production Update

Dekel Agri-Vision PLC

12 June 2023

 

12 June 2023

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, 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')

May Palm Oil Production Update

Dekel Agri-Vision Plc (AIM: DKL), the West African agriculture company focused on building a portfolio of sustainable and diversified projects, is pleased to provide a May production update for its Ayenouan palm oil project in Côte d'Ivoire ('Palm Oil Operation').

Key Highlights

·      The Palm Oil Operation delivered a third consecutive month of very strong performance with Fresh Fruit Bunch ('FFB') volumes and Crude Palm Oil ('CPO') production increasing a substantial 163.9% and 144.9% respectively compared to May 2022.

·      The CPO production result was a record for the month of May and a continuation of the later than usual high season which will now certainly see the Palm Oil Operation deliver a materially higher half year production performance in 2023 compared to 2022.

·      CPO sales quantities increased 17.8% in May compared to last year and Palm Kernel Oil ('PKO') production increased 93.9% compared to May last year.  The recent spike in production has seen inventory levels of CPO and PKO at levels materially higher than last year which should drive strong sales quantities over the coming months.

·      CPO sales price achieved remained strong at €953 per tonne, a slight decrease from last month reflecting the recent softening of international CPO prices which are now trading around €800-850 per tonne.   A local CPO price premium continues to be achieved, however, we expect some further softening of local prices in the next 1-2 months, albeit prices achieved still remain well above historical averages.

·      The CPO extraction rate improved slightly from the previous month to 21.8% from 21.4% and we are seeing further improvement in June 2023.  Although seasonal peak production is now tapering off, our early guidance for June 2023 CPO production remains significantly higher than June 2022.

·      Similar to last month, the financial performance for May 2023 was strong and has positioned the Palm Operation to deliver an excellent H1 2023 period of financial performance.

	May-23	May-22	Change
FFB processed (tonnes)	24,301	9,207	163.9%
CPO Extraction Rate	21.8%	23.5%	-7.8%
CPO production (tonnes)	5,306	2.167	144.9%
CPO Sales (tonnes)	4,741	4,025	17.8%
Average CPO price per tonne	€953	€1,056	-9.8%
Palm Kernel Oil ('PKO') production (tonnes)	320	165	93.9%
PKO Sales (tonnes)	Nil	148	n/a
Average PKO price per tonne	n/a	€1,606	n/a

Lincoln Moore, Dekel's Executive Director, said: "May 2023 was a really pleasing month for the Palm Oil Operation headlined by a 144.9% increase in CPO production compared to May last year which was also a record level of production for the month of May.  Whilst CPO prices have softened from near record levels, the current prices remain historically strong and we continue to achieve a local premium to international prices. Overall, the Palm Oil Operation remains well positioned to deliver an excellent H1 2023 outcome."

** ENDS **

For further information, please visit the Company's website www.dekelagrivision.com or contact:

Dekel Agri-Vision Plc Youval Rasin Shai Kol Lincoln Moore	[phone]
WH Ireland Ltd (Nomad and Joint Broker) James Joyce Darshan Patel	[phone]
Optiva Securities Limited (Joint Broker) Christian Dennis Daniel Ingram	[phone]

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 60,000tpa capacity crude palm oil mill and a cashew processing project in Tiebissou, which is currently transitioning to full commercial production in 2023. 

 

END