Member Info for dropside

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....

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?

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.

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.

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.

Thanks rugs, can't fault the MMs for the spread but its still strange.

Should be up again tomorrow if it is tracking the CPO futures, up 1.4% today.

Big delayed sale announced. Maybe that submerged sale being worked accounted for the odd reversal in the bid and offer prices?

It's odd, you can sell for 2.44 and buy for 2.425

While we enjoy Boxing Day, the palm oil price continues its run, nice rise today.

https://uk.investing.com/commodities/crude-palm-oil

Hi BB2

I've just mailed Pablo. I've been tied up on hospital visiting (my mum) so haven't been following the BB today. Personally though, I've felt like I am in a bit of shock over the shares.

Thanks
Dropside

Problem here is it all appears to be being done back to front. In every other case the ex date is either before the record date or, if after, it is always at market open the very next day so there is no post record-date trading time.
Typical example, the Rolls Royce capitalisation:
Ex-entitlement to C Shares 24 October 2019
Record Date for entitlement to C Shares 25 October 2019

Who on earth set the KRS ex-C date a day after the record date? Unprecedented if true. And it's still an if...

gg- it does make no sense. Its like running in a 100M race and being told afterwards we decided it was 200M but we didn't think to tell you.

BB2, Yes I know, that doesn't look good. If the market wasn't asleep as we first thought then it looks like half the market thought it was ex split and half thought it wasn't. Even the CEOs of Keras and Calidus thought it was the 19th based on their emails! So that is hardly a fair and transparent market and not consistent with the LSE's statements that buyers and sellers have to be fully aware.. Which is back to the problem of where did the 21st come from and how was it notified?

dropside

Chirpy, HL said this:
we have been made aware from the London Stock Exchange that the ex date for the Demerger was today, Thursday 21 November 2019.

Is that false information?
Thanks
dropside

Yes I wrote to HL on Friday and can call them on Monday before I go out. I expect they will say the same, they should be pro-active enough to interrogate the LSE Special Situations team but we may have to help ourselves.

Critical thing is who set this XC date and on what authority. Clearly KRS and their advisers intended 19 November 6pm for the capital spilt so they would be ex on the 20th. That someone set it at the 21st is a mystery. It may just be that the LSE picked up it had happened already and belatedly added the XC flag on the 21st. Certain brokers then took this date as gospel. Won't know until the LSE are asked directly where, and from whom and on what authorisation, the 21st came from. In the meantime it would make sense to put a hold on passing the shares around or it could become nearly impossible to unpick.

Hi BB2

It is Hargreaves Lansdown :-(

Dropside

BB- thanks, I think your post 148 captures the issues perfectly. I too traded KRS, half my holding, on Wednesday so would see a good loss if this issue was screwed up. I have been in Ferrex/Keras since about 2011 so it would be somewhat disappointing to rescue defeat from the jaws of victory!

It is confusing comparing this XC with the dividends XD. Shares typically go ex-dividend a day before the record date. Taking this into account all the LSE statements about sellers and buyers transferring rights to each other around these dates makes sense.
None of it makes sense if the record date comes first followed by the ex date (XC). The logic of the KRS action was that ex and record were confirmed as 19 November in the court ruling.