MARKET DEVELOPMENT
DekelOil\'s Off-take News Expected in Next Few Weeks, Says Moore
DekelOil\'s Off-take News Expected in Next Few Weeks, Says Moore
25/10/2013 (Proactive Investors UK) - Palm oil firm DekelOil (LON:DKL) is likely to announce news of an off-take agreement for its plant in Ivory Coast in the next six to eight weeks, executive director Lincoln Moore told Proactive.
The firm's shares surged on Tuesday (Oct 22) after it revealed in a progress report that its 60-tonnes-per-hour palm oil extraction mill is on course to generate revenues in January next year.
In September this year the company revealed it was in "advanced discussions" with a number of parties regarding off-take from the site.
Moore said demand for the company's off take was "very high". He said Dekel was likely to sign a deal with more than one group - probably up to three.
One firm it is engaging with is a "well known commodity group" and another is a "very well-known palm oil company", he said.
The mill, whose construction is being led by the experienced Malaysian firm Modipalm & Boilermech in a turnkey contract, is set to become one of West Africa's largest with a capacity to produce 70,000 tonnes a year.
Yesterday, Dekel revealed: "As demonstrated by the strong progress made with the construction of the mill, we remain on course to start operations in January 2014 and generate material revenues from CPO (crude palm oil) production in the peak harvesting season between March and June 2014.
The company will initially be sourcing palm oil crops from smallholder plantations covering 27,000 hectares.
Addressing the question of volumes through the mill, Moore told Proactive: "The aim for 2014 is to produce 35,000 to 40,000 tonnes of CPO.
"In order to do that we need to put through roughly about 150-180,000 tonnes of fresh fruit bunch to get that 22% extraction rate, which therefore gets your 35,000 to 40,000 tonnes of CPO."
The firm is aiming its forecast at this stage at north of US$30mln for revenue, with profit somewhere between US$6-10 million, he said.
On Wednesday, broker Optiva Securities, which rates the shares a 'buy', said: "DekelOil is now a step closer to becoming a significant producer of Crude Palm Oil (CPO) in Cote D’Ivoire.
It has a target price of 1.63p on the stock (current price: 1.05p).
In a positive update on the plant's build on Tuesday, Dekel highlighted that the first 2,500 tonne storage tank had been completed and that the second was at an advanced stage.
All essential civil works have been completed as have the kernel drying silos.
The firm's shares surged on Tuesday (Oct 22) after it revealed in a progress report that its 60-tonnes-per-hour palm oil extraction mill is on course to generate revenues in January next year.
In September this year the company revealed it was in "advanced discussions" with a number of parties regarding off-take from the site.
Moore said demand for the company's off take was "very high". He said Dekel was likely to sign a deal with more than one group - probably up to three.
One firm it is engaging with is a "well known commodity group" and another is a "very well-known palm oil company", he said.
The mill, whose construction is being led by the experienced Malaysian firm Modipalm & Boilermech in a turnkey contract, is set to become one of West Africa's largest with a capacity to produce 70,000 tonnes a year.
Yesterday, Dekel revealed: "As demonstrated by the strong progress made with the construction of the mill, we remain on course to start operations in January 2014 and generate material revenues from CPO (crude palm oil) production in the peak harvesting season between March and June 2014.
The company will initially be sourcing palm oil crops from smallholder plantations covering 27,000 hectares.
Addressing the question of volumes through the mill, Moore told Proactive: "The aim for 2014 is to produce 35,000 to 40,000 tonnes of CPO.
"In order to do that we need to put through roughly about 150-180,000 tonnes of fresh fruit bunch to get that 22% extraction rate, which therefore gets your 35,000 to 40,000 tonnes of CPO."
The firm is aiming its forecast at this stage at north of US$30mln for revenue, with profit somewhere between US$6-10 million, he said.
On Wednesday, broker Optiva Securities, which rates the shares a 'buy', said: "DekelOil is now a step closer to becoming a significant producer of Crude Palm Oil (CPO) in Cote D’Ivoire.
It has a target price of 1.63p on the stock (current price: 1.05p).
In a positive update on the plant's build on Tuesday, Dekel highlighted that the first 2,500 tonne storage tank had been completed and that the second was at an advanced stage.
All essential civil works have been completed as have the kernel drying silos.