News blog

DekelOil

• BY: Andrew Hore |
• POSTED: 18/03/2013 |

Shares in palm oil project developer Cyprus-based DekelOil went to a 10% premium on the first day of trading and hopefully the money it has raised is not in any Cyprus bank. 

DekelOil raised £1.7m at 1p a share and also acquired a cash shell with £580,000 in the bank.

The cash will be used to build a 60 ton per hour palm oil extraction mill. There are also loans of €14.3m from two West African banks. Construction should be completed by the end of 2013.

In 2014, the mill is expected to produce 40,000-50,000 tons of crude palm oil, which is worth $33.6m-$42m at current prices.

DekelOil owns 51% of a palm oil project in Côte d’Ivoire and its partner is Siva Group, which has invested €8.3m in the project and will continue to match DekelOil’s investment.

The joint venture company has rights over 24,000 hectares in the Guitry region of Côte d’Ivoire and this will be the second phase of the plantation. This will start in 2014.

There are plans to acquire other assets.

At 1.1p a share, DekelOil is valued at £14.3m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFMarch2013_42.pdf