Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
what question .?
JEZZAC, ask that question in a months time and you may get an answer, by then you could answer it yourself.
Esquimo. They couldve been digging out unicorns for all we know but there is no denying the RNAs have always over promised and underdelivered and todays RNS is no different.
All the old RNSs can be quoted, but have you seen a reason why anyone should believe they have changed their style of Comms? They suggest things may happen and usually have a caveat in there.
That's 4000 tonnes in total not 4000 tonnes a month. 4000 tonnes over what time scales, 4000 over 4 months or 2 months? I'm sure ITIL will want proof Edenville can hit 3000 tones a month for a number of months not just one month. I bet that comes out at some point, that they say they can get 3000 now they have to do it for X months.
I'm sure we still don't know the whole story
I think that you will find that 2018 through choice of area was spent digging more mudstone than coal. They have since moved the mining operations to the northern area where the coal is commercially viable.
2018 was not EDL's best period for communications, hiding the fact that they had only produced a few hundred tonnes of sellable coal but plenty of finings which they have at last found a customer for.
All the old RNS's can be quoted but do they have any bearing on the current situation?
27th Feb 2018
pleased to have ''commenced'' production on a new order for 4,000 tonnes of coal for use by a Tanzanian customer. If the coal is deemed suitable for the customer’s needs having utilised this initial order, the customer has requested another 60,000 tonnes over a period of 6 months (an average of 10,000 tonnes per month)
so why no handover if they are only looking for 3000 tonnes now, when in Feb 18 4000 tonnes were already in production!
6th Mar 2017
Letters of intent and expressions of interest have been received from several parties who intend to purchase coal from the operating mine on a long-term basis….the Company is conservatively planning for firm orders that will result in initial sales in the region of 5,000 to 8,000 tonnes per month
19th May 2017
signed a Letter of Intent with a customer to supply coal. Initially this is expected to be 1,000 tonnes per month rising to a potential 7,000 tonnes per month supply to this customer as the operation expands….In addition to the above, the Company is working on several other agreements that would provide significantly more additional sales.
12th Jul 2017
substantial interest has been shown from prospective purchasers of our coal. Detailed discussions have been held with several groups wishing to take delivery of washed coal once produced.
1st Aug 2017
currently processing orders for coal and limited deliveries of raw coal are scheduled to be dispatched to customers from the second week of August.
25th Aug 2017
In addition to the Company marketing the coal, we have an agent actively exploring new client possibilities in the region, including in Kenya, Rwanda and Uganda.
29th Aug 2017
has entered into a marketing agreement with a UK company with links to African energy and commodities trading. The Agent, which has been sourcing possible customers for Edenville’s coal, wishes its identity to remain confidential at this time for commercial reasons.
10th Oct 2017
recently started treating coal through its wash plant and once up to full production, currently anticipated to be in January 2018, and utilising the current plant and equipment levels, the Company anticipates production volumes of at least 10,000 tonnes of coal per month.
23rd Nov 2017
These initial, “test shipments”, currently totalling over 1,000 tonnes, are to parties that have expressed interest in placing long-term coal orders with the Company, subject to finalising pricing and quality, that in total could exceed the initial planned output of 10,000 tonnes per month, which is targeted to be achieved by the end of January 2018.
31st Jan 2018
remain in detailed discussions regarding contractual terms with several of these groups and others regarding potential long-term orders that total over 10,000 tonnes of coal per month.
27th Feb 2018
pleased to have commenced production on a new order for 4,000 tonnes of coal for use by a Tanzanian customer. If the coal is deemed suitable for the customer’s needs having utilised this initial order, the customer has requested another 60,000 tonnes over a period of 6 months (an average of 10,000 tonnes per month)
Today's RNS joins a long list of jam tomorrow RNSs about output figures
esquimo - we were planning on achieving 10,000t per month by January 2018.
It's the usual BoD wording in our RNSs - expecting, subject to, indicated, positive sentiment - I just want them to deliver and stop talking about it.
3k tonnes wont be a problem with the washer starting up, what I do find interesting is, a year ago ILTL would have moved in with the small production at the time, now they want 3k tonnes before they move in, why is that?
EDL are expecting to produce considerably more in the next couple of months or so if/when those contracts are placed.
Pi - I don't read it quite that clinically. There was clearly an issue around handover created by Covid, but that only goes so far with me.
I suspect there has always been something in the agreement around us being able to demonstrate to ILTL that a breakeven scenario is possible. That 3,000t is interesting, as we have cited 4,500t previously as a business for breakeven so that starts to inform the business model and working out margins etc.
The fact this 3,000t has only just been communicated doesn't reflect well, notably as I'm not aware we have ever managed to get to an average of 3,000t.
So it seems, seems ITIL don't want to take on a stationary coal mine. They want Edenville to prove the mine can produce 3,000 tonnes a month before they even think about touching it.
And even then the status of the agreement will be reviewed, certainly sounds as if ITIL have their doubts. If they were confident it would say hand will take when 3,000 tonnes a month is produced. Remember, if ITIL ever do get to take it on there's a 60 day mobilisation period Edenville sprung on us in one RNS.
Can anyone confirm, but to my knowledge Edenville have never been actually able to produce 3,000 tonnes a month.
Mine hand over approaching 10 months delay, and now we have to wait for Edenville to produce a level of I believe they historically have never produced.
How do you think it will take them to go from 0 output to 3,000 tonnes a month?
Ok so now it all makes sense we haven't been waiting for Iltl to move in as thought, it's all down to edl yet again to pull their finger out.
Pi - That's how I read it
"The status of the agreement with Infrastructure and Logistics Tanzania Limited ("ILTL"), as announced on 8 June 2020, will be reviewed once production rates at Rukwa exceed 3000 tonnes per month."
So in a nut shell if edl cant exceed 3000 tonnes a month then no hand over will take place.
esquimo - I do get a sense of deja vu when we discuss these things on here.....!
GW, The interims in Sept. may give us a clearer picture of the financial situation.
Any real expansion wont be for some time yet.
10k tonnes PM what a debacle that was, I have posted on that before.
The RNS might be a bit of good news before the results, I have no doubt we shall be in need of that.
Next month could be a different story.
esquimo - not sure about another raise - we've done well over £3m already in 2021 - how much more money do they need?
For me though the seeing is believing - we've had plenty of RNSs in the past talking about orders, tonnage etc. For a company that said in October 2017 it was targetting 10,000t per month by January 2018, we're still waiting.
But, at least we have an update.
I'm assuming that production has been near or at zero for sometime, if they are needing to restart the washplant.
The hint at expanding production may mean another fund raise but this time to increase income, I'm ok with that.
"The status of the agreement with Infrastructure and Logistics Tanzania Limited ("ILTL"), as announced on 8 June 2020, will be reviewed once production rates at Rukwa exceed 3000 tonnes per month."
So we are not even producing 3000 tonnes per month at the current time???
"The status of the agreement with Infrastructure and Logistics Tanzania Limited ("ILTL"), as announced on 8 June 2020, will be reviewed once production rates at Rukwa exceed 3000 tonnes per month."
So now there is a condition on the ITIL hand over? Why did we not know about this? I still have my concerns over this handover.
"On the acquisition front we have recently spent time with our new strategic investor, Tony Buckingham, and we look forward to exploring opportunities with him and his team,"
So they haven't started exploring opportunities yet, but they are looking forward to.
Good news on the jam tomorrow coal contracts though