News Column

Dekeloil Says Production Sees Big Increase At New Ivory Coast Mill

July 8, 2014

Tom McIvor

LONDON (Alliance News) - Dekeloil PLC Tuesday said its monthly average crude palm oil and kernels production from its recently constructed 60 tonne per hour crude palm oil extraction mill has "increased substantially" when compared to its first month of operations.

The palm oil development company operating in the Ivory Coast said production for its first full quarter of operations at the plant ending June 30 was 5,943 tonnes of crude palm oil and 1,077 tonnes of kernels.

The company said the average production levels from April to June were much higher than its 1,617 tonnes of crude palm oil and 189 tonnes of kernels during March, which was the first month of operations at the site.

Dekeloil said its crude palm oil extraction rates also increased to 24% from 24,936 tonnes of fresh fruit bunches, compared with 21% in March.

The company added that sales of palm oil during the recent period totalled 4,965 tonnes at a price of USD936 per tonne, and it sold 1,107 tonnes of kernels at a price of USD251 per tonne during the period.

Dekeloil said the revenues represent an estimated gross sales margin of 27% to 29%, which was at the high end of its previous estimates, and the company was overall EBITDA positive during the quarter.

In addition, a second logistics hub will be operational by next week, which should enhance the deliverability of its fresh fruit bunches from regional smallholders.

"As CPO production increases, the internal cash flows generated will provide a strong platform of growth, which will enable the company to roll out its planting scheme around the mill area as well as at Guitry, our second project in Ivory Coast," Executive Director Lincoln Moore said in a statement. "Dekel holds the rights to over 24,000 hectares of land at Guitry, and we plan to develop a palm plantation and to build a second modern CPO Mill there over time."

Dekeloil shares were up 7.7% to 1.18 pence, putting it amongst the top AIM All-Share risers during early trading on Tuesday.

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Source: Alliance News

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