Member Info for jk400

Slift, it's on Research Tree.

You just need to create a free account.

No HarChris, the main problem is we have a cashew facility that is 3-4 years late and burning through circa £200k a month.

We were told on 06 January 2022 that cashew production had commenced, yet according to Zeus Research today, the cashew facility will not be up to full operating capacity even by the end of this year. It's going to be 2026 and, I assume, that is the 10k figure and not the 15k we were told (by introducing a third daily shift pattern). The 30k figure that the mill can be converted to (from existing revenue, no less) is currently a pipe dream.

If you look back through the history of this thread, we were promised that the cashew facility would pay for itself and that there would be no need for any additional dilution. If you are correct, then that would be another broken promise.

You talk about £10k in cash saved - what about the circa £200k per month that the cashew facility is losing as a result of being mothballed? Therefore, another £400k over the next 2 months because we don't have any stock of raw cashews. Unbelievable.

This morning's update shows everything that is wrong with this stock.

4 days late, as is always the case when it comes to bad (or less than excellent) news.

More jam tomorrow.

CPO mill running at just 46.4% of capacity - or 54.1% depending on which mill size you believe to be correct (70k or 60k).

More dilution to pay advisors.

I mean how did they end up running out of stock of cashews? It's not as if they're like FFB's that need dealing with immediately. They've had four years to plan.

It's also been noted elsewhere that whenever international prices are high, our harvest is dreadful. When our harvest is good, international prices are low.

Thanks Fenlli, my current thinking is Strong Buy for this as despite all of the issues, we are now at a level where the SP is a hell of a long way below fair value. I mean, we are 90%+ below the level we reached when the first mill wasn't even built/operating.

Noted, we have been losing money in recent years due to well documented issues, but I will use that quote, I see a lot of value at these levels.

One other thing re cashews, is that it's to be hoped that these new shelling/peeling machines that have taken a year to be installed have some level of redundancy. In the same we required a secondary boiler at the CPO facility when the original failed (and which we apparently now do have, a secondary one), I would expect what is described "the world’s most advanced Cashew nut processing plant" * also has said redundancy in place.

* Source: capro . ci

Slift, you are correct, but you are overlooking what now amounts to a decade of failure.

The reason the market has been slow to respond to a couple of months of positive news flow is that many long term holders here are sitting on losses of 50%-90%.

A lot of trust has been lost and promises broken. It's going to need many, many successive months (years) of positive news to get this moving back in the right direction on a sustained basis.

If you look back through the history of this thread, there are still many unanswered questions. I won't go through them all now, but one that springs to mind on trust is why did the CPO mill drop on paper (in the RNS's) from 70k tonnes as built to 60k tonnes overnight? That's never been properly answered and the hunch is that is was so that a mill operating at half capacity would be seen as operating at 2/3rds capacity - for example.

At 4 minutes, 58 seconds - Zak Mir update.

https://www.youtube.com/watch?v=a2BZimQOtao

We also need a shift to monthly reporting for cashews in the New Year - as Lincoln promised - once the cashew facility starts ramping up to "normal".

May I suggest around the 25th of each month, so as to get a fortnightly update instead of monthly. If this data is market sensitive, put it on a delay, just please get us some more regular news flow happening.

Zak Mir's thoughts at 4:58

https://www.youtube.com/watch?v=EYbcrcls7D8

Yes, it's a good start, but there's a hell of a long way back to any semblance of a reasonable SP.

As I've noted before, any positive news is only going to see a 10%-20% rise, as we saw today, followed by profit taking.

Lincoln Moore said he saw a lot of value at 3.5p, yet to my knowledge the board have not even used their annual ISA allowances to top up at these crazy low levels. (That's over the last 6 years since he said it).

This is going to require sustained positive news flow just for many of us here to breakeven.

We need a puff piece to get today's positive news out there.

Thanks Leoboy.

Highlights:

All equipment arrived on site 2-3 weeks ago.

All been assembled and now in testing phase.

Magic number - daily processing to increase to 20 tonnes+ of cashews per day.

Exciting 1-3 months ahead.

Danny, the explanation is very simple - we have what CAPRO describe as "the world’s most advanced Cashew nut processing plant". Source: https://capro.ci/

It's currently mothballed, that explains the loss.

Afternoon fk1, yes it was to do with authorising the Directors to allot shares, etc.

1. To receive and adopt the audited accounts for the financial period ended 31 December 2023 together with the report of the Directors and the auditors thereon

2. To re-elect Yehoshua Shai Kol, as a Director of the Company

3. To re-elect Aristide Achybrou, as a Director of the Company

4. To re-appoint Kost Forer Gabbay & Kasierer (a member of Ernst & Young Global) as auditors to the Company, to hold office until the conclusion of the next annual general meeting and to authorise the Directors to determine their remuneration

5. To authorise the Directors to allot shares and options and the disapplication of pre-emption rights

6. To authorise the Directors to make market purchases of own Shares

Peterson, you may find one of the three wise men in attendance kindly taking notes and then reporting back to this board.

I doubt there'll be much grilling going on, as the same questions have been asked for the last decade - only to fall on deaf ears. If you listen to the many, albeit now lesser-spotted, conference calls/puff pieces, you'll get the gist of how it will go tomorrow.

The only question that needs asking is how long does it take to procure/produce/deliver/install a shelling machine?

wh ireland downgrade fy24e forecasts

https://*********************/companies/uk/food/dekel-agri-vision-plc/research/whireland/dekel-agri-vision-ukog-announced-that-it-has-raised-gross-proceeds-of-0-5m-at-a-price-of-0-015p-/41_2024071002593599391

"mindful of the uncertainty over the timing and rate of cashew ramp up, we downgrade our fy24e forecasts today; however, with palm oil delivering a very solid performance and bearing in mind the longer term attractions of cashews, we view dkl as still well placed to lift results in future years.........we adjust our fy24e forecasts this morning to apply more conservative assumptions around the ramp up of cashew production, while taking into account marginally lower prices in the palm oil division.

net debt (€m)

2021a -31.4

2022a -29.8

2023a -29.9

2024e -30.5

2025e -28.6

In January, even though the RNS stated "Whilst daily production and quality should improve during Q1 2024, any significant uplift in production and quality is more likely during Q2 2024", I noted that the equipment was not due to arrive until June, so 'don't expect any material update in the July update. It won't be until September'.

As expected, it's now July and not only did the equipment only begin arriving last week, in July, it's not due to be installed - as HarChris noted in August - but now in fact, September.

Therefore, don't expect any material update in the October update. It won't be until January - you can quote me on that.

If this "expert" can't sort out the cashew facility within the next 3-6 months, then perhaps it should be offered at a knock down price to one of the neighbours who are doing really well at the moment with their inferior equipment and looking to expand.

We could then reopen negotiations with Norpalm Ghana.

@KoR_Wraith, you raise a valid point, but as HarChris explains the CPO facility is doing OK. It's the disastrous rollout of the cashew project, and mainly the mothballing of that at a cost of circa €200k per month, that is holding us back.

There was a dividend here in 2017 on a worse CPO performance than 2023, so CPO is not the issue.

Danny, I was expecting a bigger drop to be honest with the way the shambolic way the whole thing was handled on Friday.

Morning both, I agree with everything you both say there, but would take you up HarChris on this - "it's now clear that financing was needed to get the cashew operation to full commercial scale".

If you mean time wise, then yes. If you mean physically, then no, as the cashew facility has been at full commercial scale for 3 years, you can find the photos online. It's just that some equipment was faulty - that has apparently cost €250k to resolve, plus however many shares the expert wants in lieu of payment.

The extra financing of €2.3 million is, by complete coincidence, pretty much the same as the circa €200k per month that said facility costs when not in operation. So, it's been required to cover another wasted year when it was clear the previous year that there was an issue with the equipment.

Will there be any compensation from the manufacturer of the faulty equipment?

Why could the RNS not be released this morning?

Surely they weren't still working on it today? Ordinarily, we would not need to ask these questions, but there is always that thought in the back of your mind. There is a pattern with this type of thing and it needs to stop.