LONDON (Alliance News) - Edenville Energy PLC on Wednesday said its loss was slightly narrower in the first half of 2015 as it continued to progress its coal-to-power project.
Edenville shares were down 8.4% to 0.0504 pence per share on Wednesday morning.
The company, which is focused on developing its coal-to-power project in Tanzania, reported a GBP421,819 pretax loss in the first six months of 2015, narrowing from the GBP533,265 loss a year earlier. The company does not currently generate any revenue.
At the end of the half, Edenville reported a cash balance of GBP337,032.
Back in March, the miner relinquished its interest in four "non-core" licences, and the company Wednesday reiterated this should lead to around USD1.0 million of cost savings over the next 12 months.
"We are pleased with the level of progress that the company has made over the last six months, continuing along our path of developing the Rukwa coal to power project," said Chairman Sally Schofield.
Edenville submitted its mining licence application for the project at the start of July, and since then authorities have asked the company to provide additional information. Edenville said it will have sent all the necessary additional information to authorities by the end of September.
Once that information has been reviewed, the Ministry of Energy will conduct an administrative process before awarding the licence to the company. It said the timing of the licence "remains subject" to the government ministry.
The company is also looking to secure an engineering, procurement and construction contractor in tandem with its licence application. The company said it held meetings in September with numerous contractors and said talks should reach conclusion "in the coming months".
"Having a mining licence in place will significantly enhance our options for development and positively affects our discussion with both potential partners and sources of finance for project development. Coupled with the progress we are making in the power plant feasibility process and in discussions with potential partners the project is moving towards the stage, expected to be later this year, when a multi-party plan for project development can be agreed," said Edenville.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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