MARKET DEVELOPMENT
UPDATE - DekelOil Starts Production From Crude Palm Oil Mill in Ivory Coast
UPDATE - DekelOil Starts Production From Crude Palm Oil Mill in Ivory Coast
19/02/2014 (Proactive Investors UK) - Shares in DekelOil (LON:DKL) rose 15% after it said commercial production from its 60 tonne an hour capacity crude palm oil (CPO) extraction mill in the Ivory Coast started ahead of schedule on February 11.
This is an important step in the company’s aim of creating a major West African palm oil company.
DekelOil, operator and 51% owner of an established, vertically integrated palm oil project in the country, said the mill has the capacity to produce 70,000 tonnes (t) a year of CPO, making it one of West Africa's largest.
The company plans to increase its production capability this month, in time for the Ivory Coast’s peak harvesting season which is due to start in March. CPO production at the mill is anticipated to increase further in 2015.
"Achieving first production and revenues at our CPO mill is a transformational milestone for DekelOil, one which has been accomplished in less than a year since our admission to AIM,” said executive director Lincoln Moore.
Construction of the mill was also on budget.
The company expects to process a minimum of 150,000t of fruits and produce a minimum of 35,000t of CPO in 2014.
The shares were up 0.2p at 1.5p at 10am, having hit 1.65p earlier in the session.
Broker Optiva believes they have further to go as analyst Graeme Dickson this morning reiterated his 2.04p a share price target and ‘buy’ recommendation.
This is an important step in the company’s aim of creating a major West African palm oil company.
DekelOil, operator and 51% owner of an established, vertically integrated palm oil project in the country, said the mill has the capacity to produce 70,000 tonnes (t) a year of CPO, making it one of West Africa's largest.
The company plans to increase its production capability this month, in time for the Ivory Coast’s peak harvesting season which is due to start in March. CPO production at the mill is anticipated to increase further in 2015.
"Achieving first production and revenues at our CPO mill is a transformational milestone for DekelOil, one which has been accomplished in less than a year since our admission to AIM,” said executive director Lincoln Moore.
Construction of the mill was also on budget.
The company expects to process a minimum of 150,000t of fruits and produce a minimum of 35,000t of CPO in 2014.
The shares were up 0.2p at 1.5p at 10am, having hit 1.65p earlier in the session.
Broker Optiva believes they have further to go as analyst Graeme Dickson this morning reiterated his 2.04p a share price target and ‘buy’ recommendation.