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Dekeloil Public Ltd (DKL)

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Market Cap:
£10.15m

DekelOil confirms award of contract for cashew project works

19 Nov 18

LONDON (ShareCast) - (Sharecast News) - West Africa-focussed agriculture company DekelOil Public announced on Monday that, following a competitive tender process, Capro CI SA had awarded a contract for the construction of civil works and associated infrastructure for its large-scale cashew processing project at Tiebissou in Cote d'Ivoire.
The AIM-traded firm said that, as it had previously reported, it had an option to acquire a 58.5% interest in Pearlside Holdings, which was developing the project through Capro, its wholly-owned subsidiary.

It said the contract had been awarded to two companies that jointly bid for the tender - Entreprise Kone Daouda Soukpafolo Nouvelle, an established civil engineering company in Cote d'Ivoire; and Société Internationale d'Ingénierie en Structures et Assemblages Métalliques, an associate company of EKDS which specialises in metal and civil works.

EKDS would be the lead contractor.

Work to be performed under the contract by EKDS and SIISAM represented between 80% and 90% of the total civil works required for the project, including earth works, concrete floors and construction of office buildings.

The total cost of the contract was approximately €2.2m, payable by Capro.

Work was expected to take between six to eight months to complete, beginning in early 2019.

The remaining civil works, including the installation of the water system and connection to the electricity grid, would be performed by other third-party suppliers and contractors, and would be appointed in due course.

"Today's civil works contract closely follows the award of a turnkey contract to construct the initial 10,000 tonnes per annum cashew processing plant at Tiebissou," said DekelOil executive director Lincoln Moore.

"Capro's new management team, which comprises proven individuals who played a key role in overseeing the development of our 100% owned palm oil project at Ayenouan, continues to deliver."

Moore said this time next year, the company would be "on the cusp" of having a majority option over a second operational project in Cote d'Ivoire, producing a second commodity in the form of cashews.

"[Cashews] benefit from favourable structural drivers and market dynamics, and [will] generate a second revenue stream that promises to significantly scale up our earnings profile for many years to come."

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Market Data

Currency UK Pounds
Price 2.40p
Change Today 0.000p
52 Week High 4.30p
52 Week Low 2.30p
Volume 5,000
Shares Issued 423.06m
Market Cap £10.15m

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