DekelOil (LON:DKL), operator and 51% owner of the Ayenouan palm oil project in Côte d'Ivoire, said its kernel crushing plant is in the wet testing phase and pilot production has commenced.
The operation will produce palm kernel oil and palm kernel cake, which it is hoped will boost the company’s sales and profitability.
It is expected the new crushing plant will begin commercial operation in the “next few weeks”.
Dekel said it has struck deals with local refineries and suppliers that will see all of this value-added product sold at the factory gate.
Director Lincoln Moore told investors the new kernel crushing plant will “significantly enhance” the economics of Ayenouan, which reported a more than doubling of crude palm oil production for the nine months to 30 September to 29,137 tonnes.
“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," Moore added.
Separately, Dekel said it issued options over 18mln shares, exercisable in two equal tranches at 1.25p and 2p.