Kernel Crushing Plant Arrives in Cote d'Ivoire

RNS Number : 2801R

Dekeloil Public Limited

26 June 2015

 



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

26 June 2015

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

Kernel Crushing Plant Arrival at Abidjan Port

DekelOil Public Limited, operator and 51% owner of the vertically integrated Ayenouan palm oil project in Côte d'Ivoire, is pleased to announce that the equipment and components required to construct the Kernel Crushing Plant ('KCP') arrived at Abidjan port, Côte d'Ivoire on 23 June 2015.  The KCP is a key part of the Company's strategy to maximise profitability at Ayenouan, which also includes increasing production of Crude Palm Oil ('CPO') at the 60t/hr Mill, one of West Africa's largest, and further planting of company-owned estates. 

Once clearance has been received by the customs authorities, the transfer of the equipment to Ayenouan will commence.  Modipalm Engineering SDN BHD ('Modipalm'), a leading Malaysian engineering company, has been contracted to construct the KCP under a turnkey contract.  Under the terms of the contract, Modipalm assumes responsibility for the manufacture, transportation (excluding land transportation in Côte d'Ivoire and shipping insurance), supervision over installation and commissioning of the KCP.  Once operational in Q4 2015, the KCP, which is fully funded, will operate at 60 t/day and has a capacity to produce palm kernel oil at a rate of 80t/day.   

DekelOil Executive Director Lincoln Moore said, "With an expected maximum capex requirement of €1.1m,  our expectation is that the KCP will have a highly attractive investment return profile which, by allowing both palm kernel oil and animal feed to be sold in the local market at the factory gate, will materially increase profitability at Ayenouan.  Together with our rapidly increasing CPO production at our 70,000 tonnes per annum mill, which has already seen 2014's production levels exceeded in just the first four months of 2015, we are delivering on our strategy to build Ayenouan into a profitable and cash generative asset." 

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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
Lincoln Moore
Ben Wright Richard Salmond	Nplus1 Singer Advisory LLP	Tel: [phone]
Christian Dennis Jeremy King Saif Janjua Elliot Hance Elisabeth Cowell	Optiva Securities Limited Beaufort Securities Limited St Brides Media & Finance Ltd	Tel: [phone] Tel: [phone] Tel: [phone]
Frank Buhagiar

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. 

 

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