(Alliance News) - Edenville Energy PLC on Friday reported a first half revenue rise, but its loss widened and sale costs soared.
In the six months to June 30, the coal miner posted a sharp revenue rise to GBP151,140 from GBP59,310, but its pretax loss widened to GBP888,045 from GBP544,959. Sales costs multiplied to GBP476,352 from GBP54,663.
Administrative expenses, however, fell by 8.3% to GBP483,112 from GBP526,648.
Edenville operates the Rukwa coal project in Tanzania. During the six month period, the company produced 18,772 tonnes of run of mine coal, processed 4,411 tonnes of washed coal, and 11,134 tonnes of fine coal.
Chair Jeff Malaihollo said: "The company has achieved encouraging operational progress at the Rukwa coal project. The completion of the various upgrades to the wash plant are already providing greater recoveries, a reduction in consumables and should also enable greater throughput as mining operations continue to expand.
"The opening up of the Northern Mining Area has yielded materially positive results, with thicker seams and higher quality coal than previously experienced at Rukwa."
Looking ahead, Edenville targets a "steady state production rate" of 6,000 tonnes of washed coal product per month, enabling its operations in the country to break even". Following this, it will target achieving monthly production of 10,000 tonnes, "which will provide positive cash flow".
The company said it is on track to become cash flow positive in the first half of 2020.
So far in the second half, the Rukwa plant has produced 1,134 tonnes of washed coal, as the effects of upgrades at the project began to show. Mining production in July and August was compromised by the lack of truck availability, however.
Edenville explained: "During the second half of July and the majority of August, mining was adversely affected by the lack of available contractor trucks and a delay on the delivery of our own trucks, which in turn compromised the plant's production ability. With the arrival of our own trucks in late August this issue has now been resolved and the available coal supply is steadily increasing, with further increases in production rates anticipated in the short term."
Shares in Edenville were 1.0% higher at 0.053 pence each in London on Friday morning.
By Eric Cunha; ericcunha@alliancenews.com
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