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Https://www.share-talk.com/rns-hotlist-with-zak-mir-orcp-dkl-enet-rbw-ukog-cbx-cyan-aqru-mhc-ccz-abdx-tek-xlm-trin-sae-shg-mks/
Zak Mir:
"It remains frustrating for DKL shareholders in the sense that the past year and before has witnessed the company delivering on its strategy, especially with regard to CPO production. For DKL shares to be anywhere near their lows appears to be something of an aberration."
@darientaylor, there are rival mills in the area, so they could be heading in that direction. Some of it will be eaten, of course.
There was no exclusivity agreement as far as we're aware, i.e. buy cheap from our nursery/sell to our mill.
Here is what i dont understand. 5 years ago DKL planted a huge amount of trees. they take about 5 years to be good producers of FFBs, production in the year 2021 was 190k tonnes and this year that hasnt increased at all. where has all this 'own' planting gone.. why has there not been a huge uplift in production over the last 3 years.
The Italian machinery supplier was Oltremare spa ( since taken over by Mann and Hummel). What action is DKL taking to recover costs from this outfit as it would appear the machinery supplied was crap.
All but inevitable Rugs. It even exceeded the prediction of the poster who said 1.5p. It is a car crash of a share with those at the wheel having a get out of jail free card. Today's RNS should have someone at Director removed immediately from post due to sheer ineptitude. Look at the Gok wan attempt to put terrible news after decent news, quietly hoping the market was stupid. The BOD gave shown not one sign of being able to not to mind turn this around but even to stabilise it. Dreadful. Absolutely incompetent.
Had hoped never to see these numbers again. 1.40 to sell and 1.50 to buy. Financially a disaster.
Ha I’ve just had a little top up so average is below 2p now. I’ve never had particular faith in the management but I’m still confident I’ll see a healthy return from here.
And if I don’t? Well I’ll save my moaning for my therapist!
Now they have succeeded in thrashing the SP perhaps our well remunerated BOD might want to step into the market and do some concert buying to show some faith in what the company has become. They are sitting on worthless warrants thanks to their stewardship so they could divert cash that they will never have to call on under their stewardship. As usual though we have capitalism in reverse where the profits are privatised and the losses are socialised to small PIs. Furthermore we often hear about the vote of confidence that issuing shares in lieu is. How does Lincoln Square that with the history of an SP undergoing a veritable death spiral under his and the BODs leadership.
A casual -20%. How difficult can it be to unpeel some nuts?
Welcome to our world, HarChris. Now you can see what we've been complaining about all this time.
Well done to Troublingtimes/Stacegibbs for bailing out with another loss, not sure why you need to keep changing your username though.
More patience required here, but totally expected now.
The risk is DKLs debt. As of 30th June it was $31.5m. A strong H2 and considerable stockpile sales brings that down to about €25m, paid off in cash, but until the group is consistently profitable the risk will remain and be a drag on the valuation.
Fortunately the big ticket capex for the cashew project has already been sunk.
Not true CC. Prices well down on 2022 but production up 51.7% and 32.7% respectively.
It's the combination of healthy (well off ATHs though) prices and vastly improved production that has resulted in this year's success.
There's a lot of reporting on the effects of El Nino on Indonesian and Malaysian palm oil (the world's major regions)... forecasts are therefore for prices to rise through 2024 rather than decline.
Agreed, i'll put this here as I haven't got you to dm on twitter.
FCF is good but that's only cos prices are close to ath, any change in world prices ( already off the top ) and down it all goes.
Yr average noted.
CC fair enough, I'll hold at this valuation (my average is only 2p anyway) as CPO business is throwing off cash with those €36m revenues and forecasts are for CPO and PKO prices to rise through 2024.
Won't see a rerate until/if cashew fiips to cash break even but I'm happy to take my chances.
Hmmmm - any material uplift not until q2 when recommendations implemented!
We all know DKL - that target will be missed by a mile - it’s another year of poor cashew performance
Q2 with DKL management and delivery - no chance
Poor lack of management m8.
Food processing machinery like all production has niggles but you employ the right ppl to choose the right equipment with a decent supplier and ability to service and repair.
Q2
Market didn't react well to that one. Quite the wrong time to bring in someone who knows about cashew nut production. Might have been better to do that at the beginning. Hindsight is a wonderful thing. Good news on the palm side though.
I'm happy with the profit making from the palm oil business, enough to deal with cashew issues directly from cash flow. At this valuation it's a buy and hold although admittedly frustrating that the issues with the cashew project are ongoing.
Harchris, morning, read the rns and had a look in here.
Shelling and peeling issues, then shelling and peeling issues.
Another aim p.o.s.
Unmoved in the face of so many buys is now explained. The umpteenth time where a seller has been very fortuitous to unload just before bad news. Almost like having inside knowledge....
The England football team writ large. Unable to string two decent results together. The lack of accountability is staggering where there is no price for abject failure.
The full year update tells us that CPO has had a great year - "one of the best annual financial performances delivered by the Palm Oil operation".
Multiplying out the figures, CPO sales were €33.8m against €26.7m in 2022, up around 27%. So the year end outturn should be excellent.
But the cashew news is a setback yet again, with the machinery crapping out once more. The correcting measures are fortunately inexpensive, but it's now this Q2 which is expected to see volumes rise significantly.
Patience is a DKL investor's middle name.....
'Large background selling before results does not bode well, cashew nut production issues and this will be 1.5p on open imo'
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Would expect the cashew update much later in the month, two weeks time perhaps, so doubt any selling today is directly linked to that update.
Oh, hello Stacegibbs/Fundraiser222/Troublingtimes/Flash212, good of you to join us again.
I thought this was heading for 6p? That's what you told us last time. I take it you've bailed out again and now back to deramping?