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You could also flip it on it's head as a positive in that with the in house plantations being so small, with investment they should be able to grow them significantly? Either way Knowledge is key here, but DKL always seem to keep it close to their chest for one reason or another (although in fairness if you badger Lincoln about it directly he seems quite forthcoming)
Yeah like I said Lincoln did say the home estates were small fry compared to small holders. It's fair enough, but back when I first invested we were considering Guitry etc potential to give us a significant volume boost. Obviously fertilizer programme is now the favoured route, but I don't think we can have too much information here. I would really like to see the prod figs broken down into small holder & home estates. And some metric for fertilizer programme (only one I can think of is mass provided to small holders).... just giving us no info and expecting us to sit tight for years while prod figs sit steady with no growth is deterring investors IMO.
Last I heard was that DKL was only getting about 1000mt ffb/month from their own estate(under 2000ha.) So this would equate to less than 1500mt cpo for the first half of this year. Relatively insignificant. Hopefully the good stock of pko c 700mt will,when sold, add to the bottom line which by my reckoning is a bit better than the first 6 months of last year.
Hat trick of news from Dekel Agri-Vision Plc (AIM: DKL) this week. First up the West African focused agriculture company confirmed that infrastructure equipment required for the construction of its large scale raw cashew processing project at Tiebissou arrived in
I just think Dekel should tell us if the strategy has changed and why. As you say philpot, the volumes from their own estates are relatively small. In Malaysia, company owned estates alongside (and sometimes leasing land to) small holders and employing a large pool of foreign workers is an important part of their business model. Maybe that is what DKL had in mind for Cote D'Ivoire but it hasn't really worked out in that setting. In that case just tell us! Putting a nice gloss on things is unnecessary and makes shareholders less not more comfortable. If you are reading Lincoln....
You and me both Dropside, I've been banging on for years aboutbrequiring details of company owned estates. That said, last time I queried Lincoln told me they were much smaller than the volumes from small holders - hence they were concentrating on the fertilizer scheme for small holders....
But I would like to see quarterly breakdowns of company owned estate numbers, and volumes of fertilizer distributed.... but I doubt we'll ever see it.
DKL will "report a more profitable H1 financial performance compared to last year".
Last year's H1 produced £1.4m EBITDA, so this year should be pretty respectable following the CPO price rise.
If only production had been better this would have been a bumper year...maybe next H1 we'll get both improved volumes AND prices, PLUS the start of cashew production.....
Not a great quarter then compared to last year, 11,801 tonnes compared to 14,013 last year. But Q2 2019 was always going to be a difficult comparator, the prior year Q2 2018 was 8,637.
I would like to know how the company owned estates are going. When the plant was set up this was a key part of their strategy, their own land along with the nursery improving yields. We haven't heard much about this for the last year or so. Also how is the fertiliser plan going?
Thanks dropside, I've been a bit busy today so not had chance to trawl RNS thoroughly. Looks like that pesky Covid screwing stuff up again then. Either way fingers crossed for '21 turn around
The initial delay in Cashew production from January to April next year was stated to be because of Covid.
On 9 April 2020 we had "Manufacturing of the milling equipment in Italy continued until mid-March but work has since been suspended due to COVID-19. Commencement of production may see some delay from original target date of January 2021"
On 12 May they said "Delivery of the equipment is now expected to take place in four shipments commencing in July which the Company now anticipates will extend commencement of production at Tiebissou by up to a maximum of three months from the original target date of January 2021"
The wording softened in the 14 May RNS to become "continues to expect" commissioning in April 2020. A month later they opened the timing window from April to H1 on 10 June with "remains on course to commence production in H1 2021." The 6 July had "management believes the mill will commence production in Q2 2021" which allowed too much wriggle room in my view, and was tightened a bit today with "The development of our large-scale cashew processing project at Tiebissou is gaining momentum and remains on track to be commissioned in Q2 2021". Changing the wording from "believes" to "remains on track" sounds more positive to me.
The indication was that the cashew machinery from Italy was on the critical path. This has been shipped in line with the revised promises. Covid has probably played a part in the overall project timings. Hopefully they can bring forward as much activity as possible to maximise cashew production in the peak season next year.
When they did the palm oil plant I thought this was quite a risky venture. They succeeded in getting that up and running in a greenfield location in Cote D'Ivoire. That does give me confidence that the same team can do it again.
Sticking with positive mantra CIF ROT CPO is up at 630 bucks, been reflecting crude oil gains pretty linearly I think. Just hope USA can get their infections down, should fly then.
although they did say end of 2020 for cashew production start back when final production results came out in Jan 2020. Cant recall if it was declared why the delay to April / Q2? Anyway I am trying to concentrate on being positive here, and fantasising of actually achieving of some profit in 2021
I do question why they were specific about April 2021 in prior RNS and now it's Q2 2021... but hey there may be nothing in it. Mind you a slippage of a few weeks isn't going to excite me too much, fingers crossed they press the on switch April or early May . Be very interested to see what capacity the cashew plant runs at out of 10,000 T in it's first year. Anyone got a predictions (I don't think it's been postulated in an RNS?)
Good they have tightened the wording since the last RNS, now "remains on track".
The development of our large-scale cashew processing project at Tiebissou is gaining momentum and remains on track to be commissioned in Q2 2021.
at last we see the big sale that brokers were aware of that has pushed down the price over past few days.
When they shipped the Palm Oil Mill, it arrived at Abidjan port on 9 March 2013 and cleared customs and was ready to ship on the 25 March. They have 32 containers to ship for the cashew infrastructure, so budgeting 4 weeks sounds consistent with past experience. It would have been known about ahead of arrival so I don't see this as causing any delays to the plan.
I reckon all the trades this afternoon have been buys not sells.
PS excuse the typos, my eading eyesight is becoming awful lol. Avoiding opticians for a while until plague sods off.
So today's announcement effectively amounts to a 4 week delay then (previous estimate was April 2021). Are they saying it's due to customs? Shouldn't that ha e been expected if it is that, or is the 4 wks overly onerous compared to normal?
"Hopefully the directors are being conservative in preparing the market for a Q2'21 completion date, and perhaps we'll get a pleasant surprise in Q1:"
That just might win joke of the year at the Edinburgh Fringe festival Rivaldo! It is a good job DKL don't make teabags, you would have to leave the bag in for days. Book mark this post for Q1 2021 and feel free to repost. The Board is asleep at the wheel and cannot manage injects on production even when it is blatantly obvious that the numbers will fall short in a quarter.
Given it is a dog ate my homework share it is most likely there will be slippage and even Q2 is optimistic. I accept there are background preparations in IC as best they can but I can see no way it will happen earlier than expected.
As can see no other reason for LSE to drop their price ideas when the only trade reported is a buy at 2.40
Good to see that cashew faciity construction is now progressing well - and "in time to capitalise on the 2021 peak harvest season".
Hopefully the directors are being conservative in preparing the market for a Q2'21 completion date, and perhaps we'll get a pleasant surprise in Q1:
Just been brought to my attention the AGM isn't in UK this year, so I'll miss it (again). Anyway, if Lincoln reads this, it would be nice for some transparent info on where the fertilizer programme is at. Thanks.
Been thinking, I would like to see a specific dedicated RNS describing in detail the fertilizer programme. It seems to me to be the major platform expected to give growth in the CPO market, but currently the info is sketchy at best.
I'd like to see details on dates when the programme started, initial uptake, current uptake of small holders, current mass of fertilizer delivered in tonnes / yr and what they expect the end game mass of fertilizer tonnes / yr to be at maximum uptake. At least that way we can assess it's effectiveness and whether we should be seeing any benefits yet or not. If I attend the AGM I may bring this up.
Dekel Agri-Vision (AIM: DKL) released its first set of finals this week. No need for an eye test, the West African focused palm oil producer changed its name from DekelOil during the year to reflect the diversified agriculture company it is set to become once the large scale cashew processing project it is developing at Tiebissou, Cote d’Ivoire comes on stream in H1 2021. Until then, Dekel’s sole producing