Member Info for jk400

Thanks rugs, one point I will be emailing Lincoln for consideration (although one would hope they have already considered this) is we already have the local drop off points for FFB's at Ayenouan - could the Tiebissou facility be utilised as a secondary hub with its own local drop offs nearby?

These FFB's can then be transported to the Ayenouan facility, although there is the timescale factor for processing before it goes off, it appears to be about 6 hours by road.

Tiebissou may be in the wrong geographical area for production, but if successful as a trial, it could open up other possibilities further west in the country and get us closer to our 70k, I mean 60k, total capacity of the mill.

I believe the value will out here, it's just a matter of time.

The lack of a decent FFB harvest alongside market sentiment is against us at the moment, but we're now making money and I'd rather be here with the financials and low SP versus where we were in the past losing money with a lower SP.

The cashews are our gravy and are only just coming on stream. The market will have to recognise that at some point.

On the plus side, no more dilution of shares lately - perhaps the message is finally getting through? If anybody wants shares, they should buy them pure and simple.

Look forward to the reporting from the 3 wise men at the AGM?

Good to see MP Evans have announced a share buy back, in contrast to DKL who keep issuing more - although this appears to have temporarily stopped of late, I suspect as soon as a 'good' piece of news is released then that will be a good day to bury bad news.

nomlungu, yes we are already past the usual 10th of the month so more likely to be tomorrow than Tuesday.

It's all about whether the colour sorter has finally arrived - it was promised in the last RNS to arrive on the 25th May, then 3 weeks to become operational. That has to be up and running by this Wednesday without further delay.

The first 11 of the 21 shelling machines, scheduled to be shipped from Italy in late May, are they finally on the way?

In terms of the FFB's, I've already written off this year's harvest, but would welcome a pleasant surprise.

youzlez, yes the retrace started within minutes of those emails dropping, although it has to be said the subsequent drop would have been due to Tuesday's RNS and in particular the FFB/harvest element.

mannnan, remember 3.65p was the buy in point where they saw "a lot of value" last time we saw director buys, so I wouldn't be surprised to see some more at these levels!

The problem with the BOD saying the high season runs from December to July, is that investors will actually believe it.

Therefore, at the risk of being accused of "deramping", I'm of the opinion now that this years harvest has probably either been and gone (up 77% in November, up 110% in December, up 20% in January) or is not going to be forthcoming.

At least with that thought process, I can not be disappointed this time next month when the May figures are released. If the FFB numbers are down 40% for the rest of the year, I'm not too bothered as long as the CPO selling prices are at or hopefully even above current levels. Clearly, we'd all like normal/higher FFB, but the weather is what it is.

On that basis, with FFB's collected being vanity and our bottom line being sanity, I see no reason other than to hold at the moment with the global pricing so far producing what could possibly be a record H1 if I'm not mistaken.

The cashews on top of that are our gravy.

I agree it's been a disappointment so far, but that's only because we're running a year behind schedule, or rather the shipments are.

Having been a holder of DKL like many here for probably the best part of a decade now!, I've learned to become a very patient investor and also to take the forward guidance with a pinch of salt.

Initial capacity of 10,000tpa cashews is 13 million euros revenue. Whole nuts sell for 6.5-7 euros per kg for whole nuts and 5 euros per kg for broken nuts. Purchase price of RCN is 0.7 euros per kg.

Those figures are from the latest investor presentation here:
https://www.***************************/dekel-agri-vision-investor-presentation-2022/4121047868

According to several of the puff pieces, the financial potential of the Cashew side of the business is the equivalent of the best thing since sliced bread and way above anything that the CPO plant currently produces. DYOR.

Darton, a more plausible answer would be that the sell off started within minutes of the erroneous corporate action appearing in many holders accounts, which spooked them big time. That dropped at lunchtime on Thursday.

Glengarth, yes if you refer back to the last conference call (remember them?) in September 2021, Lincoln basically said that with RSPO certification they were working through audit points. There was a call scheduled "within the next 1-2 weeks" (so 8 months ago now) to see where we are in terms of readiness. We believe we are ready for them to visit and are trying to book the certifier to visit. "Very close to the finishing line".

Indeed rugs, and the market are looking too closely at the FFB figures. It would appear that we have another annus horribilis the likes of 2018 when it comes to harvest, albeit with the high CPO pricing saving our bacon. This could actually be a good thing in that we get it out of the way when prices are astronomical which buys time before the cashews finally get up and running.

The colour sorter and other parts are taking far too long to arrive.

Scooby, yes I got the same message via ii and thought that it wasn't worded very well at all. It's a standard message, but anyone who hadn't seen the recent RNS on the 27th April would certainly be spooked by receiving such a message.

Thanks Rivaldo, it may well be that these high global prices save our bacon if the local harvest is not forthcoming at the expected levels. We also need to see material progress with the cashew facility asap.

I've just topped up a few more this morning on this drop as it's non-sensical for me and there were two key lines in the RNS:

1. "Revenue for Q1 2022 remains higher than last year with the current lower levels of production being more than offset by higher CPO extractions rates and higher CPO and PKO prices".
2. "Timelines to move towards full production are now becoming more certain with the final assembly period taking place through May and June which should see production levels materially increase during this period".

FK1, yes and we must remember the deal that DKL and others in Côte d'Ivoire did with the locals last year to protect them from the higher pricing. It guaranteed, in turn, higher pricing for the company for longer and it looked a great deal at the time but with hindsight perhaps not so.

However, with these levels of pricing surely they can just switch to more exports?

Having said that, we do need to keep the locals happy first and foremost, I feel.

Vog, today's rise is clearly most welcome, but FK1 is correct to note that it has come off the back of no official news from the company. That's not deramping, it's just fact.

If next weeks RNS doesn't back up the increasing global CPO pricing with some solid production figures, then today's buyers will be next week's sellers. Not deramping, just a hunch.

I think you'll find FK1 and others here (including myself) correctly call out the bad as well as the good when it needs to be said about DKL. I like to hear both sides of the story.

Separately, I note on the DKL twitter page that there is an interesting post which, on its own, is not news. However, they have taken a snippet from the last production RNS and highlighted in white something which may be of interest to holders. This should not in any way be seen as ramping, so DYOR.

https://twitter.com/DekelAgriVision/status/1499331455859802120

Good to see the market have finally woken up to this bargain basement SP, but still a hell of a long way to go before we are back to anywhere near a realistic valuation.

Cairn, the SP is actually up 185% from its low point (1.75p) - but it went down 90%+ (from the peak of 20p) or 82%+ from the long term average (of 10-12p) down to that level.

As you say, that’s pretty good going.

Thanks rivaldo, ah yes the 'lesser spotted' outlawinvestor.

Welcome Danny, I agree with your sentiments entirely. DKL did pay a dividend one year (2017 from memory), but it got pulled after our annus horribilis. Lincoln stated on one of the conference calls that that they won't be bringing it back in the short term and using the cash for growth instead. It's fair enough, but what about the growth of the SP?

Swoop, you state that it is fact that "if shares are issued then the company still has the cash in the bank. This increases the value of the company to the same extent as the shares dilute it."

This is not true, as the existing (usually retail) shareholders now have a smaller ownership stake in the company than they did prior to the new shares being issued.

Dilution also reduces earnings per share, which has a negative impact on the SP. All dilution means existing shareholders are disadvantaged - unless of course you are the beneficiaries of said dilution, which as dbentley correctly points out, is in the case of DKL not materially affecting the BOD as it's usually them who are being paid in lieu.

The BOD have been made well aware of shareholder disillusionment over this matter for years, yet continue to ignore it. I assume this is why they're not too bothered about the low SP.

Apologies in advance if this is seen as 100% whinging, whining and deramping.