Dekel Agri-Vision (LON:DKL) is the topic of conversation when DirectorsTalk Interviews caught up with Charlie Cullen, Analyst at WH Ireland.
Dekel Agri-Vision has now provided its Q3 2023 production numbers for the Ayenouan palm oil project in Côte d’Ivoire and the cashew processing plant at Tiebissou, Côte d’Ivoire. Charlie, what were the key highlights in your opinion?
The palm oil business continues to stand out this year, with both volumes and pricing at strong levels setting up what is likely to be close to a record performance in this business for FY2023.
How do you see the outlook for the company?
With the company taking proactive steps on the cashew project to get their plant running at full capacity, we see the long term outlook for the business as strong. With two fully invested projects in operation, the group be should strongly cash generative and in a position to reduce its debt balance in the near future.
How do you see the company in terms of fair value?
We view increased cash generation and a reduction of DKL’s debt balance as a key catalyst of value as the cashew project comes on stream over the next year. Our fair value of 9.5p is based on a combination of DCF projections for the company and ratings for the wider peer group.
Dekel Agri-Vision Plc (LON:DKL), is a West African agriculture company focused on building a portfolio of sustainable and diversified projects, including a Ayenouan palm oil project in Côte d’Ivoire and a cashew processing plant at Tiebissou.
