Member Info for Diggerman

I think we could now assume no current production and site is surviving by selling fines at a very low margin.

They only managed 1,100t/month with full production. It should be safe to assume with the currently reduced cash to purchase fuel and magnetite, the wash plant will be idle and contractors stood down.

Am I being over negative or should we just take a negative stance given EDL's track record!!!

Who says production is increasing? My understanding is it stopped due to lack of funds/fuel.

The $10/t is profit on coal only.
The $100 - $200M investment would be for the power plant which would make an additional margin on the power produced. This investment would come from the Chinese.

https://aim-watch.com/articles/largest-smallest-aim-companies/There are only 4 smaller companies on AIM ... at the current rate it'll soon be 3!!!

The problem with the EDL deposit if you read the technical papers is it is dirty, hence the need for washing. By screening out the fines prior to washing you have poor quality fines that are ideally suitable for a power plant which can be designed for them but have little retail value. The biggest challenge EDL will face when selling fines is transport due to the amount of waste material included in the coal. This will reduce the calorific value to the point the coal is valueless after around 500 miles.
If the power plant had gone to plan this would have been a great project, without ..... you see the result!
There are other ways to clean the fines but this would require further investment, with a cleaned fines the project would have a yield of 60 - 70%

I don't think either are there anymore, no mention for ages and the project couldn't afford them while also paying for the board!!!

If the debt is greater than the market capitalisation then it has to be over if there doesn't seem any prospect of generating a profit.
Who's going to switch the lights off ... sad days!!

Washed coal can be sold
Fine coal is for the power plant .... maybe
The balance is what's washed out and is waste.

EDL can only sell 17.5% of what is mined ... that's the problem .... had this discussion before

Free sample loads?

Rufus was a surveyor, not a geologist. He would give geologists a bad name!!!

I can't currently see the project producing 9kt of washed coal. With an average over the last 12 months of 1.2kt and a 20% yield, the project would have to improve 7.5 x to get to this number and would also require mining at 45kt/month.
If some of the 9k contract for fines then it may be possible, it's all in the detail.

The only way this can work is if the power plant starts and consumes the fines. Without it you can only sell 20% of the mine production and the revenue will not cover the costs.

Why would someone buy a loss maker?

I suspect they've recently had some bad months so the annual figure was used. If it was improving they would have shown it by quarters showing the improvements as the year progressed.

Summary of annual production

Total mined 75k
Washed 15k, 20% - the valuable bit ($10/t profit)
Fine 32K, 43% - for the power plant one day!!!
Reject to waste 28K 37%
Annual revenue for the project $150k - just about pays Rufus!!!

Average monthly production
Mining 6.25k
Washed 1.25k
Fines 2.67k
Waste 2.33k

I agree with Bob. The letter from the planning office only confirms cases are open and a case is opened every time there is a complaint. Regarding the distruction of trees, the cut tree only look like saplings a few years old and they way they have been cut, they should grow again. If you look in the distance all the mature trees have been left! I believe the company is doing all it can in difficult times, I know the locals have been upset by lorries but that seems to have stopped now and anyone who lives in the local area must be happy with the millions being put into the local economy every year.