RE: NRZ22 Sep 2023 10:21
Its so smoke and mirrors with this lot. One offtake agreement for 10k, gets dropped for one for 20k. So, your mind instantly thinks we are delivering 20k. But you double check the actual wording, and it says, “up to 20k” so that’s wide open anything from 1ton to 20k tons or anywhere in between.
The CEO says in the article the mine is producing efficiently, so I would say its reasonable to consider then we are fulfilling the 20k amount.
The cost per a ton is $45, the selling price per ton is $120, which is a net margin of $75 per a ton, 20k tons @ $75 = $1,500,000 per a month.
The cost of a new wash plant, as stated in the article is $2m. By the end of October, we will have enough working capital to buy an additional wash plant and have $1m still in the bank.
They inform us in the article the miner works for just 8hr per a week! With 60% of the land holding thermal coal, would it not be sensible to get the next wash plant installed in the next three months. They can use the purchase order number for the 20k a ton per month offtake and use invoice factoring to open up the funds to speed this process up and then as soon as possible start the miner up for four days a week mining thermal coal and get this sold to the Zim government to power their power stations?
Then the attention should change to producing coke, which is all self-funded by the above.
I, however don’t hold my breath and believe the next RNS will tell us we manage to sell 5 tons in September only.