logo-loader

VSA Market Movers - DekelOil

DekelOil# Opens Second Nursery Site DekelOil Public Limited (DKL LN)# has commenced operations at a second nursey site in Côte d'Ivoire, at Dabou, located west of Abidjan. • 20ha nursery site has been leased for two years for nil rent.

VSA Capital - VSA Market Movers - DekelOil

VSA Morning Agri Comment, 03/09/19

DekelOil# Opens Second Nursery Site

DekelOil Public Limited (LON:DKL) has commenced operations at a second nursey site in Côte d'Ivoire, at Dabou, located west of Abidjan.  

20ha nursery site has been leased for two years for nil rent.

Pilot nursey will consist of 10,000 oil palm seedlings, with 5,000 of these already planted. With minor investment, total capacity could reach 600,000 plants per year.

First right of refusal agreement in place to use existing greenhouse infrastructure on the site, which may allow rapid entry into other high-value agricultural sectors.

In addition, in collaboration with AgDevCo, the company is currently completing an Environmental, Social and Health Impact Assessment at its 24,000ha Guitry development project, which is located close to this nursery site and is envisioned to have its own nursery in due course.

VSA Comment

This site adds to DKL’s existing one million plant per year nursery at its first palm oil project at Ayenouan. DKL will use the Dabou site to sell seedlings into the local area, which although providing a limited near-term economic benefit, could have a more meaningful longer-term benefit due to DKL’s wider aspirations in the region through its Guitry project. The Guitry project has the potential to become a significant project for the group, subject to project-level financing being obtained.

We are positive on DKL’s efforts to diversify its operations across commodities and regions. We also see the announcement that AgDevCo is now working with DKL on an operational level as positive, following its €8.7m investment into the group in late July.

We therefore maintain our BUY recommendation and target price of 12p.  
 

Risers and Fallers (Last Close)

#Indicates VSA house stock.
All disclosures and supporting charts can be found in the PDF version.

Edward Hugo, Head of Research & Equity Analyst, Agriculture & Alternative Energy | T: +44 (0)20 3617 5187 | E: [email protected]

VSA Capital Research | T: +44 (0)20 3005 5000 | E: [email protected]

VSA Capital Limited, New Liverpool House, 15-17 Eldon Street, London EC2M 7LD | www.vsacapital.com

This email is intended solely for the named recipient. It may contain privileged and/or confidential information. If you are not one of the intended recipients, please notify the sender immediately, and destroy this email: any disclosure, copying to any person or any action taken or omitted to be taken in reliance on this e-mail, is prohibited and may be unlawful. Any views expressed in this message are those of the individual sender, except where specifically stated to be the view of VSA Capital Limited, its subsidiaries or associates. Whilst all efforts are made to safeguard inbound and outbound emails, VSA Capital Limited and its subsidiaries or associates cannot guarantee that attachments are virus-free or compatible with your systems and do not accept any liability in respect of viruses or computer problems experienced.

VSA Capital Limited will use your personal information to administer your account in order to provide any products and services you have requested from us. Your personal information will be kept secure and will not be shared with any other party unless you provide consent to that effect.

VSA Capital Limited is Authorised and Regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
The Company is registered in England with company number 2405923 at New Liverpool House, 15-17 Eldon Street, London EC2M 7LD.

Please consider the environment before printing this e-mail

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Group Eleven Resources finds a new investor in mining giant...

Group Eleven Resources (CVE: ZNG) CEO Bart Jaworski joined Steve Darling from Proactive Vancouver on Skype to discuss the news Glencore (LON: GLEN) has entered a shareholder agreement on Group Eleven’s Zinc Exploration in Ireland. Jaworski telling Proactive how the deal works and what it...

6 hours, 35 minutes ago

3 min read