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The quality of the coal is known hence the interest from POTENTIAL customers, the problem is the inability to gaurantee supply due to ???????,
If they can dig it up in sufficient reliable quantity then they will be able to sign contracts.
5yrs, with so little production and enduring problems is no way able to build confidence in their ability to fulfill contracts.
I must have missed when they said the quality wasn't any good then
the fact and it's an irrefutable fact that they are finding it nearly impossible to sell the stuff. If it was great quality they would have people queuing at the door
what makes you say the coke is not a good quality Darien? do you know that for a fact or guessing it might be?
back in 2018 they stated that there was 173 million tonnes of shallow access coal. I invested( punted) on this. since then its been a catalogue of having the wrong equipment the wrong supply lines, the wrong people selling the coal, the wrong sales agreements ... Everything points to many many wrong decisions by this management, total under development of the mine and the debalce of the relationship with the local govt going sour... the whole board needs upgraded and they need to finally be the bullet and make an honest presentation as to what is the real quality of the cola, who is the market for it and what really needs invested to make the production levels cost efficient and competitively priced to sell. My guess is that the cola is not very good quality, the sales team is substandard and the directors are a complete waste of space.
I think somebody mentioned yesterday that the market had missed the significance of the RNS. Not sure it has.
I hope the whole BoD goes when they reshuffle / review it because they are starting to demonstrate incompetence of the highest order.
Agreed GW, it is a meaningless RNS. We have been promised production and sales for years. We couldn't do it so we handed it to someone who was supposed to be better at it. Now the suggestion is that they can't to it either without our help? What help would we be when we couldn't do it ourselves?
Is this a case of hoping that two half brains make a whole one?
Bullish - it's those "meaningful amounts" that we've been promised since early 2018 and they have never transpired. Q1 quantities were nothing short of pitiful.
Its a rather meaningless RNS as it stands. I'll be interested to see our 2021 full year results next month. GLA
The saving grace is the economics for producing coal is much better than at any time in the last few years,so if they can get it out of the ground in meaningful amounts it could actually be a very smart move.
Hopefully a ramp up in production and a few contracts reading what they said , we shall see.!
Since the predicted monthly production in 2017, without totting up the total sale of coal out of the gate, have they managed a full month's predicted target in total over 5 years?
Now they are talking of expanding organically, it does take some imagination???
Pi - there's undoubtedly a reason why no mention of sales, revenue or profit in that RNS. Same reason we've lost money since 2017. We couldn't make it work and it appears NextGen haven't taken long to come to the same conclusions. What a mess.
Edenville is assisting NextGen on the ground and providing limited funding to allow operations at Rukwa to be increased on a timely basis.
And having to pay for funding?? So is anyone actually making any profit at all from the mine.
So if I'm reading this right still no cash from coal sales even though they said would be profit on every ton sold.
I think they were always going to fail. look what their experience was..
"Nextgen is a newly formed special purpose vehicle established specifically for this venture. The principals behind Nextgen are the founders and owners of Tuxford Haulage Limited, a specialist logistics and haulage firm based in Tanzania that has been in operation since 2017."
Put in place before EDL thought they could make money out the mine but now the price has skyrocketed and nextgen have shown - as should have been predicted by holders really - they're not up to the task operationally so EDL get to renegotiate.
Bit mean of EDL imo but that's business and does mean there's likely to be another RNS in quick time with better terms for holders
To me it smacks more of Nextgen pushing back on the contract terms because they can't make it work. I suspect they have discovered in three and a half months the same thing longer term holders here have endured since October 2017....
Continued noise about increased interest in our coal etc etc - perhaps Alistair has never read the numerous RNSs from early 2018 - the one on 27th February is particularly telling. And what is "heightened demand"? It didn't exactly transpire in the first four months of this year, or in the last four and a half years.
We'll see how it turns out (more waiting....) but what worries me more are statements like "Given its current financial position Edenville now has capacity to expand operations organically and to meet this heightened demand". The only financial stability we have is what's left of that c£2.5m placing and we're still losing money each month. That money was meant for a new strategic investment / acquisitions - that RNS statement suggests they're looking at investing more in our mining operations.
I don't really see many positives in that RNS and the price action suggests neither does the market. A few block sells into that little spike too.
Need more Alistair - perhaps where our additional asset acquisitions are that were promised on 5 May 2021 or confirmed sales of coal at almost double the price it was three months ago?
"potential customers" same Carrot same Stick same results...
Looking at the RNS it seems that Nextgen can't make the project work either with EDL having to support them financially. What is the latest idea from EDL to make the project work after years of failing?