The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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"All I want is for a RNS to come out to say we are selling upwards of 3,000t per month - not mining it, talking about it, telling us why coal prices are high - just selling it."
Agreed and don't believe the sp will show any real upwards movements until the market can see it beginning to happen.
GW - agreed. It's about actually executing sales now. We have the resource, the equipment and (possibly) evidence that we can produce. But we need to sell it.
One good thing is that the cost of energy now is a global crisis, and finding cheaper suppliers will be on everyone's mind. Can we make EDL their first choice, or at least on their radar...
SoaS - yes, sorry... shares not value. Let's see how today plays out.
I don't actually think that RNS was too bad.
If they have produced almost 10k tonnes this year whilst only operating for a small percentage of the time, it implies that we could fulfil 5k tonnes a month... which is half the battle.
Finding customers is now potentially what it is hanging on.
Pawn - we have c£500k, we burn well over £100k per month and we are meant to have put aside some of that £2.5m placing for a strategic investment (Tony's £1m for a start). That doesn't add up to me in terms of how long we can go without a raise. It's not about what the Directors "say" it's about the reality.
We also have the small issue of having wasted, yet again, two months of our long dry season. It is critical that during the dry season we are at full production - for all six months - so that we have a chance of plugging any issues during the wet weather and ensuring we can average over twelve months, not six.
It's the usual stuff from our BoD.
All I want is for a RNS to come out to say we are selling upwards of 3,000t per month - not mining it, talking about it, telling us why coal prices are high - just selling it.
The market has clearly told us what it thinks about us as a company at the moment - one year ago we we were at 33p.
Only the BoD's actions, not talk, can get us out of this. We've sadly been waiting for those actions for a long time.
During the first half of 2022, 9,466 tonnes of ROM coal has been mined. Excluding Feb-May, that means we have done almost 10k in 2 months (assuming Jan was productive?)..
25k buy you mean less than £3,000, rather than £25k?
The issue of a raise or not is covered in the going concern section.
Gives reason why they are more confident of sales increasing too..
The high coal prices have resulted in:
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the export of coal from the traditional local coal suppliers in Tanzania, usually to India and
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created major demand from East Africa who would normally source their coal from South Africa but now find pricing prohibitive.
As a result of this situation the company is receiving regular enquiries for coal supply from within Tanzania, East Africa and internationally, the company has therefore taken back control of the mining operations and is already investing to raise production levels to leverage off the current demand situation.
Based on the current working capital forecast which includes previous placings, the Group has sufficient funds in order to allow it to continue in production and implement planned project development and any upgrades. However, if there are delays in procuring orders or if large export contracts are entered into then the Group may require additional funds within twelve months of the date of approval of these financial statements. The ability of the Group to raise additional funds is dependent upon investor appetite or the willingness of the banking sector to finance ongoing operations.
Good summary GW.
Burn rate is horrific and will only go up now we have the mine back in our hands.
We had revenue in a year less than what we spend in a month.
Well, no raise, yet, but c£500k in our world isn't going to last us long unless we truly turn the corner over the next few months. I still have my thoughts on whether a placing has started to be sounded out by Strand.
There are a few key issues though - burn rate is up, still "planning" for future revenue and break even and Q3 is absolutely critical to us ahead of the long wetter season.
Nothing unexpected in the 2021 figures but concerned that we've burnt through c£700k in the first six months of this year - between start of Feb and end of May we technically had zero operational costs for the mine as they sat with Nextgen.
I'd like to know why we have spent so much in six months.
And there's now next to no money left for a strategic investment.
It's not pretty to be fair and I sort of get why our share price has been mullered over the last month.
And it's a 25k buy...
Zero trades as yet. Traders undecided how to profit from that news.
I see no trades yet... is that just my L2?
RNS, as expected, what we need now is how effective the the intended rapid increase production is, or, what is going out of the gate,
Probably, sausage doing all it can to pull the price back down is likely a safer prediction though.
10% up today
I get that we need to invest in ops to support larger production volumes but it sounds like we just don’t know how to market the stuff… still aiming for 5000 tonnes a month… it’s not for lack of available resource.
We draw attention to note 2 in the financial statements, under the heading 'Going concern' concerning the ability of the group and parent company to continue as a going concern.
My concern too.
How much of that spent was on BoD salaries?
Only heading one way at 8 am
The fundings undertaken through the year ensured that the Company is well capitalised, with cash resources as at 31 December 2021 of £1,229,801
As at 27 June 2022 the Company had cash balances of approximately £515,428.
So in 6 months they spent £714,373, so their burn rate is approx £119,062 a MONTH and revenue was revenue was £105,228 a YEAR!!!!
Shocking