Dekel Agri Share Price (DKL)

yet the share price remains unmoved, and if anything slightly down. Well, I remain optimistic and have just toopped up another 62,000 or so...

Arden have retained their 9.3p target price on their "conservative" model:

"Our outlook remains unchanged for Dekel based on these results, given the immense strain on the sector that the pandemic placed not only in terms of the pricing environment but logistics too. Dekel have shown that their ‘best in class’ operating model is robust. Diversification through the imminent ramp up of their cashew nut plant will drive further shareholder value and reduce concentration risk to palm.

We make no changes to our target price and reiterate our buy rating at 9.3p representing an 97% upside to the current share price. Our model remains conservative given the favourable environment for palm oil prices and visibility of cashew nut revenues."

Hi rivaldo,

Despite a hard year DKL made it through 2020 and have come out strongly on the other side as shown by the monthly updates since December - prices achieved, production rates etc all pointing to a markedly improved 2021 - and those results for the current year are yet to take into include Cashew production which could really benefit the company tail end of this year imo. Strong believer that onshoring Cashew processing to Cote d'Ivoire is an excellent strategic move when you look at the global cashew industry which normally exports to the likes of India for processing.

One thing i'd like clarified is the 3rd commodity - is this intended to be part of the JV with Green Enesys, or will it be a solely DKL driven business line like the CPO and Cashew?

The results for last year are fine in themselves, especially considering the pandemic.

But it's the prospects for the current year and going forward which are outstanding and take priority here:

"Together with Ayenouan we have a defined path in place to treble group revenues to c. EUR60million within the next two to three years. Arguably, this is a conservative estimate as it does not take into account our plans to add a third commodity to our portfolio and also the joint venture agreement we have with Green Enesys regarding the potential development of a 30MW solar PV plant and a 5-6MW biomass plant using feedstock from Ayenouan. The possible biomass plant would also add to our already strong ESG credentials, which are expected to be independently validated later this year following the completion of the RSPO certification process, which could in turn open up export markets for our palm oil."

"The momentum behind the business continues to build in the current year: our palm oil operations are on course to post another improved set of financial results for the first half; the cashew purchasing programme has commenced in anticipation of the plant at Tiebissou commencing processing in the coming weeks; the post period end long term debt refinancing has extended the maturity of our debt profile and strengthened our balance sheet; and the planned completion of the RSPO certification process for our palm oil operations later this year will potentially highlight the attractiveness of our project and open up export routes.

Takeaways from each of the above neatly sum up what we at Dekel Agri-Vision are focused on building: a highly cash generative agriculture group; a diversified portfolio of growing revenues streams; a strong balance sheet to support future growth; and a business with best-in-class ESG credentials among its peers."

You would hope that Soya Beans price will rise in tandem with CPO as both are fungible so they can be substituted for each other in food and other products. I think Soya beansvhave become cheaper than CPO during the last year due to the soaring CPO price. A weaker crop of Soya would probably benefit CPO and the El Ninio effect has had an impact on Soya with a south American drought before and also on Dkl as we know. A definite correlation between the two prices but as DKl have a price cap it is best if CPO stagnated while Soya goes up. Dunno it they can get peanut oil out of Cashew production but that might be a useful income stream if so.