Business
Investments to Increase Profitability at Ayenouan
Investments to Increase Profitability at Ayenouan.
About this update from Dekel Agri-vision Plc
[{"type":"text","content":"\n \nRNS Number : 0285P Dekeloil Public Limited 14 November 2016 \n\nDekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food Producers\n \n14 November 2016\nDekelOil Public Limited ('DekelOil' or the 'Company')\nInvestments to Increase Profitability at Ayenouan \n \nDekelOil Public Limited, operator and 85.75% owner of the profitable and vertically integrated Ayenouan palm oil project in Côte d'Ivoire (the 'Project'), is pleased to announce three key capital investments focused on increasing the Project's profitability and further de-risking its operations ahead of the peak harvesting season expected to run from March - June 2017. \n \n· Acquisition of an Empty Fruit Press to extract additional crude palm oil (\"CPO\") from empty fruit bunches - expected to increase the total CPO extraction rate by at least 0.5 percentage points, thereby improving the Project's margins\n \no Capital investment of €485,000 - order placed with Modipalm and Sri Sinaco Engineering Works and the press expected to be operational in time for the peak harvesting period\no Anticipated payback of under a year \n \n· Construction of an additional 3,000t tank to increase overall CPO storage capacity to 8,000 tn - gives the Company flexibility to choose when to sell its CPO enabling achieved sales prices to be maximised\n \no Capital investment of €390,000 - civil work to commence imminently and take approximately 5 months to complete ahead of 2017 peak harvesting season (March - June 2017)\n \n· Investment in an additional back up boiler for the Project's 60 tn per hour CPO extraction mill (the 'Mill') to minimise downtime in the event of a break-down. While this is unlikely given the existing machinery is new and state of the art, the Board deems it prudent to de-risk this component \n \no €0.2 million deposit paid on €1.25 million capital investment - anticipated to be operational within 17 months\n \nAll investments will be funded internally from excess funds following the recent debt refinance and internal cash resources of the Project. \n \nDekelOil Executive Director Lincoln Moore said, \"These capital investments, which have been in our sights since the Mill became opera...