Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
It just goes to show the effect they have on the market.
The recent news states that we have,
Customers lining up,
Coal going out of the gate with increasing value.
Cash flow positive shortly,
Nobody believes it judging by the trades.
Until the market gets concrete proof with figures it would seem that will continue.
Not long now before will know if we have been fed the historical brown stuff.
My money is on the new managements approach .GL.all
12 months ago discussions were held with the TZ gov. re using Rukwa coal for power generation, no further mention until the recent podcast. With updates due at the end of this month on production, pricing and take off agreements, I wonder if there will be any further mention of coal for energy, after all that was the purpose of the Rukwa project.
Whatever is in the news expected there should be a positive effect in the SP, here's hoping.
It's anyone's guess what the SP will be at this months end but with the international coal price and TZ exporting coal, the competition for Rukwa coal will increase once it is proven to be a reliable source. An increase in the number of shifts worked would be a fairly straightforward means of increasing production. We shall see what happens in the coming weeks, at least we now have something positive on to look forward to.
I have followed FDBK for 10 yrs plus but only a recent holder, they are a relatively small concern breaking into what promises to be a multi million pound market, at some point they will need to raise cash for expansion with new partners, the new share price will make that easier and more attractive to investors, personally I consider the consolidation a wise move. The next news releases and the markets reaction will be the litmus test.
From the podcast the anticipation of a positive update/s it would seem to be a general trend for the SP to tick up towards the month end with the usual fluctuations due to trading. how far that goes we shall see.
It goes to show what a shambles it has been!
Can anyone after that podcast see this SP staying this low, updates on production supply agreements and directors waiting to buy in. Oh and the mention of coal being supplied for energy!
excellent podcast, more information than we have ever been given in the past.
I partly agree with what you have said, going back to 2018 series of misleading news releases but I can't remember anytime that they released RNS stating that they were producing anything like 4k tonnes of washed coal actually going out of the gate which they are doing now.
I can accept that time will tell if all is going well but the approach of the new management is possibly the most positive thing to happen at EDL.
What is not to like, we have waited all this time for a capable management and production team, they have stated that the plant is running at a production rate of 4k tonnes pm. and looking to improve that in the coming weeks, they are already in negotiations for a higher price at the gate, with orders increasing potentially above the 6k tonnes, something that we haven't achieved in the last 5 yrs, some people are not happy, I give up!
The bit I liked was they are already looking at ways of increasing production due to the demand potentially beyond the 6k tonnes, they are already talking about 4k as a minimum. The next few months are going to be very interesting.
SOS, I hope that RNS improves your mood, production commenced last week with an increase at gate price.
We should get notification that production has commenced, 3 more days to go this week.
It's new management and I'm really only saying what they've stated in the RNS. It defies logic to have a target of 4k tonnes pm and then expect that by the end of this month when as yet there's no production, if and I do say if, they can manage to accomplish that then 6k tonnes should not be a problem.
Of course I am positive I wouldn't be here if I wasn't, although it is a test of endurance,LOL.
Re the RNS, maintenance and repairs were still ongoing, and the market would be informed when production commenced. So as yet no production, the monthly target is 4k tonnes, they expect to produce that by this month's end. We are into the first week of October if they can produce 4k tonnes in what is left of this month from the commencement of production then surely the 6k tonnes can't be that far away?
EngineerTZ, your first post is in need of a translation.
BB, GW has got his figures right, we need either 8k tonnes per month out if the gate or a multiplication of the$10 per tonne, like you I have topped up on the original guesstimate of a minimum 6k tonnes in two weeks which has now up to 6k tonnes sometime after April 23, a big difference between at least to possible if all goes well.
SOS, there's little point in arguing on speculation, I like you and many long term holders, as you say, are well under water, some of the more recent investors not so.
Markets are what they are and would have no problems in dropping the price to make a profit.
At this moment in time the major holders are behind the firing and hiring and about time too.
We shall see what happens in the next few weeks with some sort of production imminent.
If there's any consolation to be taken from yesterdays RNS there doesn't appear to be any attempt to dump EDL's shares.
The other point, more curiosity, is how are they going to fund increased production , which they said they will do at their sole discretion if deemed necessary with their current funds?
Just another month to add to the ten years plus to see if we can get coal out of the gate.
Perhaps this is a little naive but the talk of production I assume is washed coal / fines going out of the gate which relies on the wash plant etc. which is out of commission due to maintenance issues. We have an extra excavator plus two more trucks, I assume that they are not idle and being utilised to clear overburden and stock piling coal. If that is the case then once the plant is up and running the 4k tonnes should not suffer any production hold ups, having said that there's no mention of stock piling in the RNS.
Plant idle time would be a good time to accumulate feedstock for such a small operation as EDL with the coming wet season.
As EDL has stated contracts and reliable income will not materialise until EDL can prove to be a reliable coal producer, the Q
is when will that be, 4k tonnes should not be a huge target but it would appear to be for EDL.
An update at the end of Oct. saying that they have actually managed to get coal out of the the gate might give the markets some glint of optimism.
As I said recently, the longer the wait the more disappointing the news..
Still maintaining EDL's 100% record of failure