13 Year Corporation Tax Exemption

RNS Number : 5254B

Dekeloil Public Limited

05 March 2014

 



DekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food Producers

5 March 2014

DekelOil Public Limited ('DekelOil' or 'the Company')

13 Year Corporation Tax Exemption for 60 t/hr Crude Palm Oil Mill Confirmed by Government of Côte d'Ivoire

DekelOil Public Limited, operator and 51% owner of an established, vertically integrated palm oil project in Côte d'Ivoire, is pleased to announce that it has received confirmation from the Government of the Côte d'Ivoire that DekelOil successfully met the conditions regarding its tax exemption application under the Investment incentives code, as administered by the government agency CEPICI.  As a result profits at its 60 t/hr capacity Crude Palm Oil ('CPO') extraction mill ('the Mill') are fully exempt from corporation tax for a period of 13 years.  The tax exemption greatly enhances the already highly attractive economics of the Mill and follows the commencement of CPO production ahead of schedule, as announced on 18 February 2014.

With effect from 1 January 2014, profits at the Mill qualify for a 100% corporation tax exemption lasting a period of 13 years to 31 December 2026.  For the year 1 January to 31 December 2027, the exemption will fall to 50% and will be reduced further to 25% for the following year.   

DekelOil Executive Director Lincoln Moore said, "A 13 year corporation tax exemption for one of West Africa's largest crude palm oil mills is a valuable asset and provides further visibility to our revenues and cashflows going forward.  We expect the Mill to process a minimum of 150,000 tons of fruits and produce a minimum of 35,000 tons of CPO in 2014, which will generate considerable revenues for DekelOil.  In line with our strategy, we will look to increase CPO production at the Mill in 2015 and beyond towards its full capacity of 70,000 tonnes per annum, as we look to rapidly build revenues that can be reinvested into our vertically integrated 'seed to palm oil' business and in the process build DekelOil into a leading West African palm oil company."

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For further information please visit the Company's website www.dekeloil.com or contact:

Youval Rasin	DekelOil Public Limited	Tel: [phone]
Shai Kol	DekelOil Public Limited	Tel: [phone]
Lincoln Moore	DekelOil Public Limited	Tel: [phone]
Christian Dennis Jeremy King Roland Cornish Rosalind Hill Abrahams Elisabeth Cowell	Optiva Securities Limited Optiva Securities Limited Beaumont Cornish Limited Beaumont Cornish Limited St Brides Media & Finance Ltd	Tel: [phone] Tel: : [phone] Tel: [phone] Tel: [phone] Tel: [phone]
Frank Buhagiar	St Brides Media & Finance Ltd	Tel: [phone]

Notes:

DekelOil Public Limited is a low cost producer of palm oil in West Africa, which it is focused on rapidly expanding.  To this end, it has a 51% interest in one of the largest oil processing mills ('the Mill') based in Côte d'Ivoire, which has a capacity of 70,000 tons of Crude Palm Oil ('CPO').  Feedstock for the Mill comes from 27,000 hectares of mature palm oil plantations that have been secured under long term contracts with smallholders, however it also has nearly 1,900 hectares of its own plantations.  Furthermore, it has a world-class nursery with a 1 million seedlings a year capacity.  Currently, it has one off-take agreement to deliver 24,000 tonnes of CPO per annum to a local refiner and is in discussions with other potential partners. 

 

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