KIM LOONG SAYS CPO PRICE DOWNTREND TEMPORARY DUE TO TIGHT STOCKS
KIM LOONG RESOURCES is optimistic that the current downtrend in crude palm oil (CPO) prices will not hurtits profit for FYE Jan 31, 2009. Executive Chairman -GOOI SEONG LIM said the Company had locked in 25% of total CPO production up to Dec 2008 at RM3,400 a tonne and was not under pressure at this juncture.
He said even if CPO price were to drop to belowRM3,000 a tonne and sustain for six months, its overallaverage price would still be relatively higher thanRM3,000 this financial year against RM2,500 lastfinancial year.
With a relatively tight national palm oil stockand uncertain soybean production, coupled with poorweather in the
Asked if KIM LOONG would further lock in its production, GOOI was quoted in the STARONLINE on Jul31, 2008 saying that ” …. we will not sell below RM3,000 per tonne and do not think it’s necessary as the CPO price downtrend is unlikely to stay ….”.
On its diversification into the palm nutraceuticalsproject, which involves the extraction of tocotrienolconcentrates (a vitamin E concentrate), he said KIMLOONG was currently busy building the distribution network to market the product, adding that the currentproduction capacity of tocotrienols at its Kota Tinggi plant in Johor was 3,000 tonnes per year.
They hope to find a niche market for tocotrienols in
NEW SOLVENT EXTRACTION PLANT FOR PALM KERNEL
Meanwhile, KIM LOONG is investing RM10m each in a new solvent extraction plant for palm kernel in KotaTinggi and another for fibre oil in Keningau,
On Dividend payout, GOOI said KIM LOONG had paid out 23 sen per share for FY09 to date, higher than itstotal dividend of 18 sen per share for FY08.(By KLSETRACKER.com)
