Operations Update

RNS Number : 5395Y

Dekeloil Public Limited

02 December 2014

 



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

2 December 2014

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

Operations Update

DekelOil Public Limited, the West African focused palm oil producer, is pleased to provide an update on its logistics operations at its 51% owned vertically integrated palm oil project in Ayenouan, Côte d'Ivoire, which includes a 60t/hr Crude Palm Oil ('CPO') extraction mill ('the Mill'), one of West Africa's largest.  This update is in line with the Company's strategy to increase CPO production at the recently commissioned Mill towards its 70,000 tonnes per annum capacity.

·    A key part of the Company's logistics strategy is the establishment of a series of hubs surrounding the Mill to facilitate the collection of higher quantities of fruit harvested

·    Two hubs are fully operational and continue to gain traction among local smallholders

·    A third hub site is expected to be operational in eight weeks in time for the next peak harvesting season - suitable location has been secured and is under construction

·    The Company is looking to procure and establish a fourth hub site by March 2015

·    Expansion of company-owned truck fleet to 24 from nine to operate alongside local truck contractors

·    New office at Mill site has opened providing a centralised headquarters for the Company in Ayenouan

·    CPO production at the Mill is in line with management's expectations - a production update covering the Mill's first year of operations will be issued in January 2015

DekelOil Executive Director Lincoln Moore said, "Our objective is to implement a comprehensive infrastructure framework that connects local farmers to our Mill and ensures a seamless and constant supply of fruit is delivered for processing during the two peak harvesting seasons in the Côte d'Ivoire.  With four hubs due to be operational in time for March when the next peak season commences, combined with our expanded truck fleet, we are highly confident that the year ahead will see a significant increase in CPO production volumes at the Mill." 

** ENDS **

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	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 based in Côte d'Ivoire, which has a capacity of 70,000 tons of 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. 

 

END

 

 

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