Re: LOOKING GOOD LONG 50% decrease in sp over the last 12 months. Now paying a divi but a poorer harvest in the first quarter and lower Palm oil prices could affect that for this year. Hopefully Cantor are correct in their 22p target in the long term. Hmm.
Re: Cantor: Buy with 22p target Brokers all seem to publish so much rubbish these days, and I would not give Cantor any more credence than Beaufort. But it could do well enough and just be a slow burner.
Re: Cantor: Buy with 22p target 22p ? ...when it snows and pigs start flying...
Cantor: Buy with 22p target Cantor Fitzgerald have reiterated their Buy recommendation, and have a 22p price target:"DekelOil's production update shows that despite a strong rise in output on Q4 17, the softer overall environment seen in Q2 17 and Q3 still prevails. With the Euro Dollar rate creating a pricing headwind we are reducing our forecasts and our target price falls to 22p from 26p. DekelOil has still been able to achieve a modest price premium to international prices and PKO production and pricing have remained strong. The pricing environment is improving in country and a major new customer helps in this regard. We see room for improvement and there remains strong value in our view. We reiterate our BUY recommendation."
Q1 update A mixed Q1 report - significantly higher sales for both CPO and PKO, though at lower prices, and CPO production down with lower FFB volumes harvested.Great news about winning Louis Dreyfus as a customer - active in more than 100 countries, employs 19,000 people, processes 81m tons of agricultural goods annually:[link] then given expectations, but this is agriculture, there will be good quarters and bad quarters. Overall DKL are very profitable and soundly financed, even if this quarter won't help their growth plans much.And their assets and operations must be hugely tempting to the much larger global operators who've repeatedly signalled in recent times that they're happy to expand via acquisition - there aren't that many acquisition targets left.
LOOKING GOOD LONG Excellent addition to the board .. his contacts and experience will help this company even more ....(.and they havent put a foot wrong yet) as they steadily build DKL UP Warm Regards to all Malkis
RNS: Miton buying more Good to see Miton increasing their stake - they're usually excellent investors. They've gone above 16% with 47.98m shares - more precisely, they had 47.56m shares in their last holdings RNS in September, so they've bought another 420,000 shares or so:[link]
Encouraging interview with CEO [link] sounds extremely positive.Highlights as summarised elsewhere:High season now "six months"!Norpalm talks still ongoing, but "not losing any sleep over it".Looking in to M&A in areas "other than palm oil" in Ivory Coast.News re what the cash is being used for - "don't want to put a timeframe on it", but "one or more things over the next little period".It seems that certainly for this year DKL are going to have an extended high season, which bodes very well indeed. Particularly with the palm oil price having bounced recently.It would be great if as suggested DKL could expand into cocoa or cashew nuts given that the Ivory Coast is already a leader in both. DKL already has the infrastructure in place this, so this would be very interesting, and I gather that tax breaks have recently been introduced for local cashew processing.
Cantor raise target price to 26p today Good news today, with (a) reduced borrowing costs and (b) a show of confidence from SocGen.Cantor Fitzgerald have as a result increased their price target to 26p and say Buy:"1024 GMT - DekelOil is taking advantage of the favorable terms of its long-term loan to reduce its short-term debts, say analysts at Cantor Fitzgerald. The drawdown will reduce the overall costs of borrowing for DekelOil and Cantor Fitzgerald says it has reduced its debt forecast by 50 basis points as a result. The financial services company says that it maintains its buy recommendation for DekelOil, and upgrades the target price to 26 pence per share, from 24 pence previously. Shares at 1019 GMT are down 1%, or 0.10 pence, at 10.25 pence."
Featured in Master Investor magazine The February issue of Master Investor magazine is out today, and it has a nice plug for DKL which will hopefully attract some interest:[link] British companies which are old Africa hands DekelOil Public Ltd. (LONKL) is one of the leading commodity groups trading in palm oil. Britain's involvement in African palm oil goes back to 1907 when one William Lever from Bolton was one of the first to import palm oil to make soap at his Lancashire plant. He then set off for the Congo with his brother James and established Lever Brothers. Lever Brothers merged with the Dutch company Margarine Unie in 1931 to form Unilever (LON:ULVR). Palm oil can now be found in half of all consumer goods in Western grocery stores from chocolate, ice cream, baked goods, soaps, lotions, and detergents. DekelOil has comea long way since its IPO in 2013. It runs a profitable seed to palm oil operation in the Ivory Coast which produced 39,000 tonnes last year. Its shares climbed steadily in January after it posted record production levels for Q4 2017 and was rewarded with a BUY recommendation by brokers Cantor Fitzgerald. Be aware that in mid-2017 the company's shares fell from 14 pence to 9 pence after it revealed mechanical problems at its mill. 70 percent of production takes place between January and June and the outlook for 2018 is promising. DekelOil has palm supply agreements with many local farmers and does not operate company-owned estates as other commodity producers do. In 2015 London-listed New Britain Palm Oil was acquired by Malaysian palm oil giant Sime Darby (KLSE:SIME). Could DelekOil be another acquisition target?"
Featured in Evening Standard Encouraging article, particularly the conclusion about DKL being a likely takeover target:[link] runs a profitable seed to palm oil project in the Ivory Coast, and last year pumped out 39,000 tonnes. The shares have been climbing steadily over the past two weeks after it posted record levels of palm oil production in its fourth quarter and was rewarded with a Buy rating from analysts at Cantor Fitzgerald.Adam Forsyth at Cantor says: A stronger fourth quarter shows DekelOil back on track. The ability to secure premium prices is also apparent. It is set to complete the planned capacity increase at its mill ahead of the peak harvesting season starting in February."One more bonus for investors could be the M&A play. Malaysian palm oil producing giants such as Sime Darby who have a stake in Battersea Power Station have a history of snapping up smaller players.In 2014, Felda Global Ventures acquired AIM-listed Asian Plantations for £120 million. This was followed in 2015 by Sime Darby who completed a $1.7 billion acquisition of London-listed New Britain Palm Oil.Will DekelOil be next?"
RNS: more good news re upcoming production [link] "DekelOil Public Limited, operator and 100% owner of the profitable and vertically integrated Ayenouan palm oil project in Côte d'Ivoire, is pleased to announce a positive update on its ongoing programme to improve the productivity and profitability of its crude palm oil ('CPO') extraction mill ('the Mill') in readiness for the upcoming peak harvesting season which is expected to commence imminently. · Installation of a second boiler for the Mill to minimise downtime in the event of a breakdown has been completed ahead of schedule and on budget o Expected to lead to an increase in CPO production in 2018 as lost production as a result of boiler issues in the 2017 high season should be avoided going forward o As announced in November 2016 the total capital investment for the boiler stood at 1.25 million · 25% upgrade in the Mill's capacity to 75 tonnes per hour ('tph') from 60tph to increase the volumes of CPO produced at Ayenouan in the peak period has been completed and testing has proved successful · The additional boiler and capacity increase form part of the Company's ongoing plan to optimise performance of the Mill, which included the following initiatives that were completed in 2017: o Construction of an additional 3,000t tank to increase overall on-site CPO storage capacity to 8,000t to provide flexibility regarding timings of the sale of CPO and enable sales prices to be maximised o Acquisition of an Empty Fruit Press to extract additional CPO from empty fruit bunches · The team continues to develop its smallholder network to expand the reach of collection hubs and increase Fresh Fruit Bunch delivery to the Mill DekelOil Executive Director Lincoln Moore said, "We continue to make excellent progress in optimising our processing and production capability. The installation of the second boiler and the 25% increase in capacity at the Mill are both part of our ongoing programme to maximise CPO production at Ayenouan, particularly during the high season in Cote d'Ivoire which we are now entering for 2018. These initiatives are designed to reduce downtime and eliminate bottlenecks at the Mill so that more fruit can be processed to produce CPO and PKO. In tandem with these Mill improvements, we continue to work closely with local smallholders to facilitate the delivery of fruit to the Mill via our distribution hubs which are strategically located at sites around our project area. We are determined to ensure all production and logistical operations are fully optimised during the upcoming high season."
Re: Another interview with the CEO I averaged down towards the back end of the last price fall and am in the black again. With so many large-scale disasters in the LSE ATM (CLLN, Capita, Provident Fin.), this could actually be a (relatively) 'safe' bet given its recent news. Let's consider - Cote d'Ivoire or the UK, hmmm - the times are changing.....
Another interview with the CEO Lovely rise yesterday, but still plenty to go for imo.Another new interview with the CEO:[link] sets up a record quarterly output"
Interview with CEO re the record Q4 And highlights, again thx to jk400:[link] April/May for full year results, as usual. Divi expected to continue, progressive growth. Second boiler "imminent". Nursery equipment on site at Guitry, installation this year. Norpalm talks still ongoing. Aiming for "solid periods of production growth" in Q1/Q2