The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Brilliant news! This is only going up. A placement in the past was seen as a dilution, rescue etc nut this placement is to support growth. I like that they are negotiating contracts in the time prior to takeover and now have capacity to wash 12.5k a day. Expect further announcements of deals prior to takeover and then quickly utilising that capacity. The rains are a consideration but this news is very positive. DYOR
0.00033...not too much excitement but better than the 38% drop this morning :)
Yep just done so!
8.9% now...but I would like the Lind issue to be sorted. I think the delay in handover is understandable.
Hi backinblak, yes they still have contract orders from their previous deals. They were struggling to fulfill them but by reducing the staff (and costs) are probably now earning some revenue but I expect it not to be substantial (they mentioned around 3000 tons per month but not too much detail given on the interim results so hard to assess). I see this more as operationally trading water before ILTL take over. Still positive but not commercially ground breaking. Hope that helps a little.
Read with interest the comments so far so thought I would add mine.
Edenville can be a source of frustration and their track record makes it a higher risk investment than some. The half year results in some ways mean very little though as the commercial and operating model is now fundamentally different. If it was the same operating model then Edenville would probably be forced to cease trading as funding will not be so readily available. Covid 19 has impacted nearly all sectors / companies except some sweet spots like supermarkets, online delivery etc. The fundamental success factor for EDL is to complete the transfer to ILTL as quickly as possible and certainly before the rainy season and come to some arrangement with Lind (the latter is just commercial flexing by Lind to obtain some cash element over shares and no one wants to lose cash so they will come to some agreement). The delay in admin is being felt everywhere and by every government / Board e.g. it takes 12 weeks for a house search when you sell a property when it should be no more than 4 weeks.
Now saying all that the new operating model and commercial arrangement still needs a 3 month settling period to be seen as a success and new orders need to be trumpeted but bringing in a competent, experienced team at their cost and obtaining good revenue (I think they said the price agreed was towards the top end of the market), all makes commercial sense. My main worry was that they would miss the interim results date and now that is done , happy to wait and see. I respect all views and do not participate in ramping or de-ramping escapades. Good luck to you all.
Having been here for over 5 years this is the best news I have seen. No more placings required, minimum tonnage of 3000 increasing to 5000, more resources from experienced provider, 12500 pm target, price the best they have seen (wonder what that is - $40-50 per tonne (April 2020 based on SA) - though costs for transport arr not EDL's responsibility so could be higher?). Expect the price to push on now.
Slight modification wanting' not wanted' and 'coal usage and demand will remain and grow up to 2040'. Had my eye on other things!
For those wanted detailed information on the wider African Energy position and strategy and an indepth look at Tanzania Energy needs then please take a walk through the attached link and you can also download the document. The Executive Summary finishes with the paragraph below and throughout the detail the importance of growing the electricity grid is so important. Coal usage and demand will remain the same up to 2040 but other energy sources will feed into the growing demand. An interesting read.
Last paragraph: Africa’s energy future is not preordained: many pathways are possible, but effective policy choices can guide the continent to a more inclusive and sustainable energy future and accelerate its economic and industrial development. The choices that lead in this direction vary, reflecting the different resource endowments and starting points across a very diverse African energy landscape. Some have full access to modern energy services within their grasp, while others have much further to go, or are struggling with instability or a legacy of conflict. But there are reasons for optimism, both from the dynamism of Africa’s energy sector and from the technologies that offer a cost-effective way to meet rising demand in a sustainable way. Whether and how African countries take advantage of these opportunities will depend in large part on the way that energy policies evolve. With the right institutional and policy foundations, a well-functioning energy sector can be the cornerstone of economic development and make a huge difference in the lives of Africa’s people.
https://www.iea.org/articles/tanzania-energy-outlook
Not surprised this went down initially. The MMs want a market because that is where they make money. They are creating demand and hopefully investors realise that fundamentally Edenville is in a much stronger position after the latest RNS. I expect this to fluctuate back and forth to stimulate further activity and this will quickly move back into blue today. For the first time in a while I feel comfortable with my investment and resisted the urge to sell yesterday when it was at its highest. DYOR of course!
Looks like next wave is starting...I hope so!
Yes, never goes up in a straight line, expect some profit takers and who can blame them. However, this is well under market capitalization for strength of contracts signed.
L2 demand is substantial.
Looks like EDL have turned a corner - contracts in place to provide the demand, finance sorted and of course they still have loads of coal for the supply part of the equation!
Looking good.
Well this is going to take off. May increase holding to 100m.
Divorcing capital from the relentless equity dilution is a great move...just need to dig the coal out now!
So some good news further a field on start up of a wind farm plant for the dry season. Hopefully we are near the mine reopening. I expect the share price to start to rise in expectation or news of the £1m loan facility.
https://www.thecitizen.co.tz/news/1840340-5575488-ayrypl/index.html
bought some on a spike to 6 but overall in pretty good place.
Watched this share for a long while and yes not the greatest success story so far. However with creditors paid off, money in the bank, loan agreement due by ILTL (sure this will happen since they have signed the coal mining agreement) and strategic partnership to on sell - coupled with an announcement that the mine has reopened surely not far away, I am optimistic.
Probably but just a lower volume being bought.