Dekeloil Public : 2019 Interim results

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

DekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food Producers 25 September 2019

('DekelOil'orPublicthe 'Company')Li ited

2019 Interim Results and Shareholder Call

DekelOil Public Limited, the West African focused agricultural company, is pleased to announce its interim results for the six months ended 30 June 2019.

The Company will be hosting a shareholder conference call at 11am UK time on 2 October 2019. The call will be hosted by Executive Director, Lincoln Moore and Deputy CEO Shai Kol, who will discuss the interim results and provide an update on activity across its portfolio of projects. Further information about the call can be found at the end of this announcement, as well as in the presentation, which will be uploaded to the DekelOil website prior to the conference call.

Building a West African focused multi-commodity,multi-project agriculture company with a portfolio of diverse revenue streams and end markets

• 30.1% increase in Crude Palm Oil ('CPO') production to 28,934 tonnes compared to 22,242
Production - palm oil project, Ayenouan Côte d'Ivoi e
•	tonnes in H1 2018
	Record first half performance driven by 37.1% increase in Fresh Fruit Bunches ('FFB') delivered
	to mill to 131,917 tonnes (H1 2018: 96,195 tonnes), as yields recovered after 2018's poor peak
•	harvest season and successful enhancement of the logistics network
•	19.9% increase in CPO sales to 26,702 tonnes (H1 2018: 22,271 tonnes)
	Average realised sales price of €505 per tonne of CPO, a small premium to international
•	benchmark prices which continued to trade at cyclical lows during the first half
	Improving pricing outlook post period end with CPO prices reaching US$570 per tonne in
	September 2019 compared to a low in May 2019 of US$480

• €1million project level investment secured with Concordia Corporation Ltd., a Hong Kong based
Development - cashew proc ssing project at Tiebissou in Côte d'Ivoire
•	private equity company at an implied €6 million pre-money valuation
	DekelOil's interest in the project now 37.8%, plus an option to acquire an additional 17.0%
•	interest
	Funding enabled commencement of construction phase at Tiebissou post period

First production expected in 2020, at which point Tiebissou will become DekelOil's second

• producing asset and provide exposure to favourable structural drivers of global cashew market

• 3.5% increase in revenue to €14.6m (H1 2018: €14.1m) as 30.1% increase in CPO production
Financial overview
•	offset an 8.0% decrease in CPO prices	15.4
	Gross margin percentage improved to	% (H1 2018: 14.6%) as lower raw material costs due
	to increased availability of fruit was largely offset by 8.0% lower CPO prices and 1.1 percentage
•	point decrease in the CPO extraction rate
	6.3% decrease in general administration expenses to €1.5m (H1 2018: €1.6m)
•	% increase in EBITDA to €	m (H1 2018: €1.1m)
Net loss of €	m (H1 2018: net loss of €0.5m)
•	29.3		1.4
	From 30 June 2019 onwards, DekelOil's interest in the Tiebissou cashew project through its
•		0.1
	ownership of Pearlside Holdings Ltd will be consolidated into the Company accounts (see Note
•	4)
	Post period €7.2million 10-year senior secured loan facility entered into with AgDevCo Limited
	("AgDevCo"), a UK government-backed social impact investor in Africa's agriculture sector:
	o	€6.2 million replaces an existing NSIA Bank loan
	o	€1.0m for Environmental, Social and Governance ("ESG") activities and general working
	capital purposes
•
	The AgDevCo loan's four-year capital repayment holiday estimated to generate €5.8 million cash
•	savings, after taking into account interest rate differential and transaction fees
	In addition to the loan facility, AgDevCo subscribed to €1.5 million in new ordinary shares in
	DekelOil

"Strong progress has been or is being made on numerousDek lOil Executivefronts includingDirectora reboundLincoln Mooin firste said,half palm oil production at Ayenouan, construction commencing at the cashew processing plant at Tiebissou and a €7.2 million loan facility and €1.5 million equity investment secured from leading social impact investor AgDevCo which has materially strengthened our Balance Sheet. This has been achieved despite operating within the framework of the lowest sustained palm oil prices we have seen since operations at our seed to oil project at Ayenouan commenced in 2014. Critically, in the last month we have seen palm oil prices begin to strengthen and we are optimistic palm oil prices will continue to rise over the next 6 to 12 months.

"Not all the aforementioned milestones were reached in the regulatory six-month reporting schedule and so the full positive impact of these have not been reflected in our first half financial numbers. Despite this, we are encouraged by the increase in first half revenues and EBITDA to €14.6m and € respectively, which provides a stable platform for the continued development and delivery of1.our4m second production asset: the cashew processing facility at Tiebissou."

Conference Call

To participate in the conference call to be held at 11.00am UK time on 2 October 2019, please dial 0808 109 0701, (if you are calling from outside of the UK, please dial [phone] and enter participant pin 3418484# when prompted to do so. Please note that all lines will be muted with the exception of Company management, however the Company invites shareholders to submit questions to its public relations adviser, St Brides Partners Ltd, ahead of the call via email. Questions should be sent to [e-mail].

Additionally, to view the presentation which will be referred to throughout the call, please use the link below and log in as a participant; the password is: DekelOil

Link to Presentation Function:

https://sbmf.webex.com/sbmf/onstage/g.php?MTID=e8c60f565eb7071b34847e732ee0470fd

If you have any problems accessing the call, please contact St Brides Partners	Ltd on
[e-mail] or call [phone].
For further information please visit the Company's website at www.dekeloil.com or contact:
DekelOil Public Limited	[phone]
Youval Rasin
Shai Kol
Lincoln Moore	[phone]
David Foreman (Corporate Finance)
C ntor Fitzgerald Europe (Nomad and Joint Broker)
Keith Dowsing (Equity Sales)	[phone]
VSA Capital (Joint Brok r)
Andrew Monk (Corporate Broking)
Andrew Raca (Corporate Finance)	[phone]
Christian Dennis
Optiva Securities Limited (Broker)
Jeremy King	[phone]
Frank Buhagiar
St Brides Partners Ltd (Investor Relations)

Cosima Akerman

Chairman's Statement

Subject to shareholders approving the change in the Company's name to Dekel Agri-Vision at the General Meeting to be held on 10 October 2019, the 2019 half year report is set to be the Company's last as DekelOil. The name change is being proposed as it better reflects how DekelOil is being transformed from a single project palm oil business, into a multi-project,multi-commodity agriculture company focused on West Africa. The diversification has already commenced with ground works for the 10,000tpa cashew processing plant now underway. In addition, we continue to evaluate a number of new ventures to add to our growing portfolio of agriculture projects.

For now, Ayenouan remains DekelOil's sole producing project. In July 2019, we were pleased to report that CPO production at the state-of-the-art mill for the six months ended 30 June 2019 came in at a record 28,934 tonnes, pushing total CPO volumes produced by the mill over the past five years to over 200,000 tonnes. The record half-yearly production figure was largely driven by fresh fruit bunches (FFB's) harvested during the 2019 peak season returning to more typical levels, after a weak peak harvest in 2018. FFB delivered to the mill increased 37.1% to 131,917 tonnes in H1 2019 compared to 96,195 tonnes in H1 2018. The recovery in FFB volumes harvested and CPO produced by our mill are in line with historical precedent, which had informed the industry-wide held view that 2018's poor harvest was an outlier and that conditions would recover in 2019. However, we also believe the project's collaborative model, which is centred on working closely with and supporting local smallholders, as well as the successful enhancement of our logistics network, has also played a key role in enabling us to consolidate our market share of local fruit delivered to the mill over the half year period.

This year's peak harvest did not just result in higher volumes of fruit delivered to the mill but also led to
a normalisation in raw material prices resulting in a gross margin of	%, a 5.5% improvement on the
14.6% achieved in the first half of 2018. This was achieved despite an 8.0% decrease in CPO prices and
	15.4

1.1 percentage point decrease in the CPO extraction rate in the corresponding period. As detailed in the
table below, the recovery in production volumes has resulted in a year on year improvement in
Ayenouan's half year financial results.
Revenue	€1.4m	€1.1m	€3.7m	€3.1m	€2.3m
	H1 2019	H1 2018	H1 2017	H1 2016	H1 2015
EBITDA	(€0.1m)	(€0.5m)	€2.4m	€1.8m	(€93k)
	€14.6m	€14.1m	€19.6 m	€16.0m	€12.9m
CPO production (tonnes)	€505	€549	€707	€542	€617
	131,917	96,195	117,706	123,157	90,879
Average CPO price per tonne	28,934	22,242	26,947	28,550	21,836
The relevant figures for the Company's previous first half year periods demonstrate how 2018 stands
out as an anomaly caused by the atypical combination of a poor peak harvest (reflected by the drop in
FFB collected) and weak global CPO prices (reflected by further price weakness). H1 2014 has been
omitted from the table as the mill at Ayenouan was commissioned in Q1 2014 with CPO production
incrementally ramped up over the course of the first half. As the table shows, the recovery in the harvest

was partially offset by a further 8.0% fall in global CPO prices in H1 2019 to €505 compared to H1 2018's €549. Should CPO prices recover to at least long-term averages of approximately €700 per tonne we would be confident of exceeding the record 2017 financial result.

Encouragingly, pricing levels in September 2019 rallied to around €570, a significant increase on May's €480 per tonne low. While too late to positively impact the Company's financial results for H1 2019, we are optimistic that prices have bottomed out. Decreasing international stock levels of CPO over the past year and new initiatives in south east Asia to increase biodiesel production, of which CPO is a key feed stock, give cause for optimism that CPO prices will continue to strengthen over the next 6 to 12 months. Notwithstanding this, 2018's challenging trading conditions demonstrate the rationale behind our strategy to build a portfolio of diverse revenue streams to insulate the Company against weak trading conditions in any one particular market. As set out below, progress is being made in this regard.

Post period end in July 2019, we were pleased to announce the commencement of ground works of an initial 10,000 tpa cashew processing plant at Tiebissou. Tiebissou is being developed in line with the collaborative model that we successfully deployed at our 100% owned palm oil project in Ayenouan. This is centred on constructing a state-of-the-art plant to process raw cashew nuts ('RCN') grown by local smallholders and co-operatives.

As was the case with Ayenouan, before ground was broken, a shortfall in regional cashew processing
capacity was first identified in the area around Tiebissou before relationships with local co-operatives
to supply RCN to the project were established. Despite being the world's top cashew producer, Côte
d'Ivoire only processes	% of RCNs grown in the country. The project at Tiebissou will therefore

allow more of the value-10add-15available via the processing of RCN to be retained in the country, while at

the same time providing local smallholders with an outlet for their produce. DekelOil holds an initial 37.8% interest, together with an option to acquire an additional 17% in the project which is expected to become a major income generator for the Company in due course.

In addition to Ayenouan and Tiebissou, we also intend to develop our 24,000 ha Guitry project site. While we regard Guitry as a long-term project, post period end we announced the commencement of operations at a nursery site in Dabou which, due to its close proximity to Guitry, will enable us to build relationships with local farmers and cooperatives and at the same time, test market nursery sales in the area.

DuringFinancialthe half year period under review, total revenues from the production of CPO at Ayenouan were €14.6m (H1 2018: €14.1m) which generated EBITDA of €1.4m (H1 2018: €1.1m) and a loss after tax of

€ (H1 2018: loss after tax €0.5m). As described above, the improved half year financials were driven0.1m by a normalisation in volumes of fruit harvested during the peak season compared to the previous year.