Significant Month on Month Growth in Production
DekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food Producers
7 April 2015
DekelOil Public Limited ('DekelOil' or 'the Company')
Substantial month on month growth in production
DekelOil Public Limited, operator and 51% owner of an established palm oil project in Côte d'Ivoire, is pleased to announce a significant increase in Crude Palm Oil ('CPO') production at the Company's extraction Mill ('the Mill') for the first quarter of 2015.
Highlights
· Substantial month on month growth in CPO production during Q1 2015 reflects the successful roll-out of a comprehensive logistics network which is focused on maximising delivery of fruit to the Mill for processing:
o January 2015 - 2,168 tonnes of CPO and 373 tonnes of kernels
o February 2015 - 3,158 tonnes of CPO and 509 tonnes of kernels
o March 2015 - 4,352 tonnes of CPO and 720 tonnes of kernels
· Q1 2015 production of 9,678 tonnes of CPO and 1,603 tonnes of kernels - ahead of management expectations
· CPO production extracted at a rate of 23.9% from 40,448 tonnes of fresh fruit bunches ('FFB'), compared to 22.7% achieved during FY 2014
· Sales of palm oil stood at 8,327 tonnes of CPO and were sold at an average sale price of €604 per tonne ex-Mill
· 1,538 tonnes of kernel were sold at €183 per tonne ex-Mill
· Three logistics hubs to enhance deliverability of FFBs from regional smallholders are now fully operational in time for the commencement of the peak harvesting season which typically runs from March to June
· Management expects to surpass the CPO production of 14,242 tonnes produced in 2014 during Q2 2015
DekelOil Executive Director Lincoln Moore said, "With 9,678 tonnes of CPO produced in Q1, we are confident that 2014's CPO production of 14,242 tonnes will be surpassed during Q2 2015. The Board believes that this significant increase in production positions the Company for a very positive 2015, our first full year of operations at Ayenouan. We view the excellent month on month increases in production as validation of the logistics network we have put in place in the area around the Mill, including the establishment of three collection hubs and the expansion of our own truck fleet, which has facilitated the delivery of fruit grown by local smallholders for processing. As the peak harvesting season gets into full swing, we are therefore ideally placed to maintain the strong momentum behind the business. Our kernel crushing plant is also on course to be commissioned in Q4 which will materially add to the Project's profitability."
In addition, application has been made to AIM for the Admission of 7,729,746 new ordinary shares issued to certain employees following the exercise of options and to certain advisers in settlement of fees for services provided. It is expected that Admission will become effective on 24 April 2015. Following Admission, the Company's issued share capital will consist of 1,539,710,316 Ordinary Shares.
** ENDS **
For further information please visit the Company's website www.dekeloil.com or contact:
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Youval Rasin |
DekelOil Public Limited |
Tel: +44 (0) 20 7024 8391 |
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Shai Kol |
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Lincoln Moore |
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Ben Wright Richard Salmond |
Nplus1 Singer Advisory LLP
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Tel: +44 (0) 20 7496 3000 |
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Christian Dennis Jeremy King Saif Janjua Elliot Hance Elisabeth Cowell |
Optiva Securities Limited
Beaufort Securities Limited
St Brides Partners Ltd |
Tel: +44 (0) 20 3137 1903
Tel: +44 (0) 207 382 8300
Tel: +44 (0) 20 7236 1177 |
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Frank Buhagiar |
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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 a 51% 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 27,000 hectares of mature palm oil plantations that have been secured under long term contracts with 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
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