An Established Vertically Integrated Palm Oil Production Company, Cote d’Ivoire Focussed on Growth AGM Presentation: 16 July 2015
Overview An AIM quoted vertically integrated palm oil producer in Cote d’Ivoire Production Revenue 51% owner of a 60 t/hr mill palm oil from 60 t/hr Generative project, one of West Africa’s largest Mill 1,000’s of Vertically Integrated Smallholders 21,836 tonnes of CPO produced for 6 Providing FFB Increasing months to 30 June 2015 vs 2014 ’s total Production 9 month production figure of 14,242 tonnes 1,900 ha of Planted Estates One of the only palm oil developers not Corporate in partnership or subject to takeover by Environment a major Asian palm oil company 100% Owned Nursery Demand for palm oil estimated to double 24,000 ha Market Demand by 2020 Expansion Land Vision to become a leading West African CPO Producer
Board of Directors 25 years operational management and private equity experience in Africa and other emerging Andrew Tillery markets including 10 years as a CEO in Cote d'Ivoire, West Africa where he had responsibility for managing a group of oil palm operations and founded a natural rubber business. Holds two Non Executive Masters degrees from Oxford University, an MBA from the University of Chicago. Currently a Non Chairman executive director on 3 African agribusiness boards and adviser to several agribusiness investment funds in sub-Saharan Africa Youval Rasin Founder of DekelOil and has held senior management positions in various companies within the Chief Executive Rina Group, a family holding company with interests in agriculture, mining, hotels etc. Qualified Officer lawyer and active in Ivory Coast since 2002 with 9 years’ experience in agro-industrial projects including 7 years in the Palm Oil Industry. Co-Founder of DekelOil. CPA & MBA graduate. 13 years work experience in finance, with Shai Kol significant business & international exposure. former KPMG corporate finance. Financial director for Chief Financial an international software company, Director of finance and business development for Yellow Pages Officer leading fund raising and M&A activities. For the past 6 years Lincoln has been active in the West African oil palm industry in Liberia and Lincoln Moore Sierra Leone including establishing and raising finance for palm oil developments. Former CFO of Executive Sierra Leone Agriculture Ltd and former executive director of AIM listed Northcote Energy Ltd. Director Chartered Accountant and former senior manager at Deloitte and Touche. Orli is Chief Investment Officer (“CIO”) of Impala Energy an independent power project Orli Arav development. Prior to the formation of Impala, Orli was the Managing Director of the Emerging Non Executive Africa Infrastructure Fund (“EAIF”), a dedicated open-end commercial debt fund focused on Director infrastructure projects in SSA, where she was involved in the financing of over 35 infrastructure projects in SSA (approximately US$800 million of commitments) across 16 countries. Orli has also held roles in the project finance divisions of global accountancy firms PriceWaterhouseCoopers and Ernst & Young.
H 1 ‘15 - Dramatic Production Increase • 21,836 tonnes of CPO and 3,733 Total 2014 Production vs. H1 2015 tonnes of kernels produced for the Production six months to 30 June 2015 25,000 • 53% increase on 14,242 tonnes produced for the whole of 2014 20,000 • Dramatic increase testament to 15,000 logistics solution to supply Fresh Fruit Bunches (‘FFB’) to the Mill 10,000 • CPO sales of 19,184 tonnes at an average price per tonne of € 617 5,000 • 3,760 tonnes of kernel sold at € 183 per tonne ex-Mill 0 Total 2014 Production H1 2015 • Peak harvesting season runs from March – June On track to significantly increase palm oil production in 2015 to over 30,000tn, the Mill’s first full year of operations
Excellent Location Existing Smallholder relationships • c.1,900 ha company • plantations 60t/h mill • 1M plants nursery • Expansion Plan 24,000 ha for plantations • 60t/h mill • New nursery (subject to funding) • Advantageous Existing operations Expansion land is Good road links to location and are located in located in Guitry, the port and to existing Ayanouan, 2hrs 4hrs from Abidjan’s Ghana infrastructure from Abidjan’s port port
Strategy Immediate • Construct a palm kernel oil crushing facility by Q4 2015 • Develop a further 3,000 to 5,000 ha of company plantations in close 1-2 Years proximity to the first mill and increase yields of smallholders ’ plantations • Commence operations at 24,000ha Guitry including new nursery and 1,000ha of estates • Finalise first land acquisition in Ghana of 10,000ha Long Term • Expand planting at Guitry and construct second 60tphr palm oil mill Medium – 2-5 Years • Commence first nursery and pilot planting in Ghana • Review new projects in Cote d’Ivoire and bordering countries To rapidly increase production from the first project and fast track development of Guitry project
Market Opportunity Corporate Activity International palm oil majors currently entering or expanding in West Africa to address lack of land in • Malaysia and Indonesia World ’ s three largest palm oil companies; Wilmar, Sime Darby and Golden Agri have entered West • Africa Dec 2013 - KLK, one of the leading global plantation companies, has acquired a 63% interest in • Liberian-based Equatorial Palm Oil at a significant premium to DekelOil DekelOil is currently one of the only established, palm oil developers with contiguous land not in • partnership with a major Asian palm oil company Palm Oil Production Consumption Balance ‘000t Palm oil is the most widely used edible oil in the world • Benin 35 110 (75) Cote d'Ivoire 400 270 130 Demand estimated to double by 2020 (World Bank) • Ghana 120 160 (40) Guinea 50 75 (25) Supply side limited by lack of land availability in traditional • Liberia 42 61 (19) growth zones in Malaysia and Indonesia Nigeria 850 1240 (390) Sierra Leone 36 44 (8) Togo 7 90 (83) 1 of the last remaining West African palm oil developers without investment from a major
Cote d’Ivoire: An Ideal Environment Cote d’Ivoire has a well established palm oil industry with an • estimated 250,000ha of palm oil plantations Highly dominant agriculture industry provides an existing • agriculture workforce and commodity trading infrastructure Modern infrastructure: land, sea (largest port in West Africa), • air, electricity and communication Shortage of Côte d’Ivoire milling capacity for smallholders • The Directors believe the market is relatively fragmented with • potential acquisition opportunities Economy grew by 8.1% in 2013 (source IMF projection) • Company No. Hectares Annual Palm oil of tons FFB production Mills PalmCI (SIFCA, Wilmar 12 39,000 1,107,443 250,000 & Olam) 2 11,035 264,083 56,778 SIPEFCI 2 7,100 295,200 59,040 Palm Afrique 1 6,041 110,000 22,000 SOGB 17 63,176 1,776,726 387,818 Total
Ayenouan Project 60 ton/hour mill, largest in West Africa, • Simple CPO Processing became operational in March 2014 Methods Total mill site size - c.14 hectare, mill floor • base - c.9,000 s.q.m. At full capacity, the Mill can produce 70-75,000 • tons of CPO An effluent treatment plant ( ‘ ETS ’ ) is being • built by leading provider KIS Group Kernel crushing plant currently being • constructed – due to commence operations in Q4 2015 Mill management and operations team in place • This hosts one of West Africa ’ s largest mills with production being optimised to drive revenues
Site Pictures A vertically integrated, world class Mill operation in West Africa
Feedstock for the Mill Company Estates Small Holder Estates 1,900 ha planted to date at Ayanouan, partly yielding Relationships with 1,000 ’s of small holders Costs to maturity: US$2,000/ha to US$2,500/ha Estimated annual yields from small holders of 10 tn/h of Fresh Fruit Bunch Mature plantations in Côte d ’ Ivoire have a peak yield of 20-24t/h A blend of small holder feedstock due to regional surplus supply and planted company estates which will come into maturity in the near term
Logistics Logistics Zone Managers recruited to coordinate • the delivery of fruit to collection points and Mill Continuous planning with local cooperatives to • enable the adequate and efficient delivery of feedstock Three ‘Collection Points’ established providing • multiple drop-off points for smallholders and managing congestion as trucks make deliveries for processing The Mill’s reception area has been designed to be • twice the size of those at traditional 70,000 tpa mills for efficiency purposes Contract signed with a subcontractor to transport • fruits from the Logistics Collection Points to the Mill Developing an effective logistics network to ensure timely delivery of fresh fruit bunches ('FFB') to the Mill via Collection Points
Social and Environment RSPO member and certification process • to commence shortly Majority of planting over previously • cultivated areas Planting in partnership with local • communities Palm oil effluent treatment plant planned • All environmental permits in place • Employ over 300 staff – majority local • management Focussed on developing its projects sustainably and in line with RSPO standards
Recommend
More recommend
