19th Oct 2015 07:13
LONDON (Alliance News) - DekelOil Public Ltd Monday said it has started a pilot production test at the kernel crushing plant at the Ayenouan palm oil project in the Ivory Coast, which will boost sales and profitability once fully operational.
The company, which has a 51% stake in the project, produces palm oil from fresh fruit bunches but also uses the kernel, which is the nut inside a fresh fruit bunch that is used to derive a similar, but lower quality product.
Pilot production has started at the kernel crushing plant alongside the wet testing phase. The plant will allow DekelOil to sell palm kernel oil and palm kernel cake which will boost sales and profitability, it said.
Commercial production at the plant is expected to begin in "the next few weeks".
Additionally, the company has entered arrangements with local refineries and suppliers which will see all of the kernel product sold at the factory gate.
"The kernel crushing plant will significantly enhance the economics of our Ayenouan project where we recently announced a more than doubling of crude palm oil production from our state of the art mill for the nine months to September 30, to 29,137 tonnes, compared to the whole of 2014," said Executive Director Lincoln Moore.
"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," he added.
DekelOil also said it has issued share options over 18.0 million shares to its operations management team. Half of those options are exercisable at 1.25 pence per share whilst the other half is exercisable at 2.0p.
The company also issued 869,489 new shares to "certain former advisers" for fees owed.
DekelOil shares were up 0.3% to 0.97p per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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