DekelOil announced today that the Kernel Crushing Plant (KCP) at the project is in the wet testing phase and pilot production has commenced. The KCP has been built in line with the Company’s strategy to increase sales and profitability via the sale of Palm Kernel Oil and Palm Kernel Cake. The KCP is on course to commence commercial operations in the next few weeks. Additionally, the Company has entered arrangements with local refineries and suppliers and will see this entire value added product sold at the factory gate.
DekelOil Executive Director Lincoln Moore said, “The KCP will significantly enhance the economics of our Ayenouan project where we recently announced a more than doubling of CPO production from our state of the art mill for the nine months to 30 September to 29,137 tonnes, compared to the whole of 2014. With the testing phase now underway, it is clear that we will deliver this asset on time, and we look forward to entering 2016 with an additional revenue stream ahead of peak production season.”
Grant of Options & Issue of Equity
The Company also announces that share options over a total of 18,000,000 ordinary shares of €0.00003367 each (“Ordinary Shares”) have been issued to members of the operations management team.
The Options vest immediately on their grant and half of the Options granted are exercisable at a price of 1.25 pence per Ordinary Share while the remainder are exercisable at a price of 2 pence per share.
Beaufort Securities view: The Company has delivered yet again on its promise with the announcement of the testing phase of the Kernal Crushing Plant. The further announcement of deals with both local refineries and suppliers ensures 100% of the value added product sold at the factory gate. Further, the announcement of options to the operations management team at premiums to the closing price last Friday of 1p – with half at a 25% premium and half at 100% premium. We believe that those premiums are achievable and in the near term. We upgrade from a Speculative Buy to a Buy.
Beaufort Securities acts as corporate broker to DekelOil Public plc