LONDON - Dekel Agri-Vision Plc (AIM: DKL), a West African agricultural company, has reported a significant decrease in palm oil production for November 2024 but remains optimistic due to high local prices and the upcoming high season. In its recent update, the company also noted positive developments in its cashew operations, with improved processing rates and strong sales prices.
The company's Ayenouan palm oil project in Côte d'Ivoire saw crude palm oil (CPO) production fall by 73.0% compared to November 2023, continuing the low season trend. Despite this, the CPO extraction rate remained broadly consistent year-on-year, and sales prices increased by 24.4% to €968 per tonne, indicating a favorable market. Palm kernel oil (PKO) production also decreased, but PKO sales volumes showed a 55.0% increase.
On the cashew front, Dekel's Tiebissou plant in Côte d'Ivoire is experiencing sustained improvements across key performance indicators thanks to new equipment. The company successfully processed 15 tonnes of raw cashew nuts (RCN) per day in November and plans to test higher levels soon. The directors anticipate the cashew operation to generate positive operational cash flow during December 2024.
Lincoln Moore, Dekel's Executive Director, expressed confidence that the higher CPO prices would support the forthcoming high season despite the prolonged low production season. He also highlighted the cashew operation's enhanced performance, which is nearing the production of monthly operational cash flow.
The company is scheduled to provide a detailed quarterly update for its cashew operations in Q4 2024, compared to the same period in 2023, around January 10, 2025. This update will be based on a press release statement from Dekel Agri-Vision Plc.
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