Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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JohnZ - Directors of many companies are like salesmen and quite a few I have met could sell ice to the eskimos. It's all about the AIM dream. But we're no longer chasing the dream, as we've found the 170m+ tonnes of coal. We are now in the reality and mining our pot of gold. We're now in a pure profit and loss scenario linked directly to how quickly we can mine coal that we can sell, make revenue and realise a margin. That's the business model. And it's failing....and has been failing since October 2017. I hope Alistair has a colony of rabbits up his sleeve. GLA
GW - The difference I see is " WHO IS SAYING THIS"...
Lets give AM a chance to see what happens..
JohnZ - but realistically he can't say anything else can he? He is looking for what appears to me to be pretty critical funding. GW
AM has said - "discussions with the potential strategic investor in the Project are progressing and a second investor has expressed interest in becoming involved with the Company as a strategic shareholder at the Company level. Whilst there is currently no certainty that these negotiations will lead to a successful outcome for Edenville, the Board believes that the two coal new contracts increase the attractiveness of both the Project and the Company for potential investors."
So we could have someone else becoming an investor in EDL????
At Least AM is keeping us in the loop and he still believes we will reach BE.
"As previously reported, Edenville expect cashflow breakeven at Rukwa at around 4,500 tonnes of washed coal sold per month and has a target of achieving this by May 2020."
I wonder how many reversals we will have later on today and tomorrow???
Rocket - I think it's all about getting some substance around balanced views. There are people ramping Edenville this morning and those, including myself, keen to keep the balance on here for a company that is desperately short of cash, under producing mining output and borrowing more cash to stay afloat. I said earlier that this morning's RNS is good, in isolation, but it masks the much bigger issues we have as a company. I've also been in many AIM shares where news has been used as a front for a placing in the background and forward selling of options. I'm not saying that is going on here, but as I get older and a little wiser my gut instinct tends to tell me about possible red flags. I'm very much like aerial and have reduced my average significantly over time but I'd personally prefer to be out at break even if I can get there, as I don't think our business model will see us through next year. Genuinely best of luck to everyone in here. GW
Desperate, na they are the facts.
Recent production levels have been significantly lower than this with 820 tonnes of washed coal produced from 21 September 2019 to the present time.
We have this to remind us......... From February 2019 the Company took measures to conserve capital and continue supply to key customers whilst seeking alternative funding arrangements. As announced on 1 April 2019, production was adversely impacted in H1 2019 with approximately 18,772 tonnes of Run of Mine ("ROM") coal processed to produce 4,411 tonnes of washed coal and 11,134 tonnes of fine coal between 1 January 2019 and 30 June 2019.
Not a lot is it.
Rocket13 Could you remind me of the amount they are producing ATM
And then this RNS 9th Oct 2018 ............Edenville Energy plc (AIM: EDL), the company developing a coal project in southwest Tanzania, is pleased to announce that it has signed a significant contract for the supply of a specialised coal product. The customer, an industrial group operating in East Africa, will use the coal as part of its manufacturing process. The terms for supply are set out below:·
the contract is for the supply of 3,500 tonnes of coal per month with an option for the customer to increase this up to 6,000 tonnes per month.
Commenting, Rufus Short, CEO of Edenville said, "I am very pleased our team have been able to work alongside this customer to ensure their needs are met and that the Company can look forward to supplying the Customer coal for at least the next two years. I look forward to providing further updates on the progress of the operation as we expand and enter into further contracts."
Lets not forget this RNS 22nd Aug 2018.....Edenville Energy plc (AIM: EDL), the company developing a coal project in southwest Tanzania, is pleased to announce that it has signed a contract with an East African industrial group (the "Customer") for the supply of up to 4,000 tonnes of coal per month on the terms set out below:
All the cash sunk into this project and they can't even produce 1000t in two months, its a joke and RF is still involved creaming off the cash.
Rocket13 . Do you not find it strange how suddenly they have these "contracts" but couldn't even produce more than 820t from 21st sept to 29th November .
Really. The Rwanda contract is of particular note to the Project as it has the potential to open up a major new transport route for the Company's coal on Lake Tanganyika to both Rwanda and Barundi. This is a route that is both shorter than conventional truck transport and is more cost-effective, using low cost barge transport.
That will be fun to follow. who will buy the Barge's, hope they don't sink lol
The traders want you to buy in so they can sell. LOL
They have stated they need cash.
In order to satisfy the Company's immediate working capital requirements, the Company has entered into an agreement with a private lender to secure a non-convertible £100,000 loan (the "Loan"). The Loan carries a fixed coupon rate of 20% per annum and must be repaid on or before 25 February 2020. Including the Loan funds, the Company currently has cash resources of approximately US$190,000. Whilst this will provide the Company with sufficient funds for its immediate needs and enable Edenville to satisfy orders from an existing customer, it does not provide sufficient working capital to enable the Project to operate at its planned capacity, nor to continue the 2020 monthly payments to Lind in cash.
recent production levels have been significantly lower than this with 820 tonnes of washed coal produced from 21 September 2019 to the present time.
Consequently a balance of US$835,760 now remains outstanding under the Funding Agreement, repayable on a monthly basis at an amount of US$50,637.38 per month.