Diversifies Sales Through Relationship with SIAT

RNS Number : 1295Z

Dekeloil Public Limited

09 December 2014

 



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

9 December 2014

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

Diversifies Sales through Relationship with SIAT

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 is supplying Société d'Investissement pour l'Agriculture Tropicale ('SIAT'), an agro-industrial group of companies, with Crude Palm Oil ('CPO') produced from its 60 t/hr extraction Mill. 

DekelOil is selling CPO to SIAT at the factory gate at a 10% premium to the CIF Rotterdam CPO price at the time of sale. The Company now has four sales partners in place in line with its strategy to diversify its customer base.  Notably, this supply arrangement with SIAT will see the Company's first sales for export and accordingly, two shipments have been successfully completed.

DekelOil Executive Director Lincoln Moore said, "This relationship will see CPO produced from the Ayenouan Project sold at a 10% premium to the spot price at the time of sale, demonstrating the strong demand, both in-country and for export, for our product.  In tandem with our ongoing efforts to establish an efficient logistics network focused on maximising the delivery of fresh fruit bunches for processing at our Mill, we look forward to the next peak harvesting season in the Cote d'Ivoire."

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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 Christian Dennis Jeremy King Saif Janjua Elliot Hance Elisabeth Cowell	N+1 Singer Optiva Securities Limited Beaufort Securities Limited St Brides Media & Finance Ltd	Tel: [phone] 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.  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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