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A new month tomorrow, if the production targets are realistic we should have plenty to look forward to.
Interims, upgrades and production to increase to ensure a constant production to 6000 tonnes pm during the wet season, we shall see how much meat there is on that statement?
It's still a long way off the 2018 targets.
Reading the RNS they did say that any upgrades and repairs would be notified to the market, I suppose that could be any time. It is expected that the output will increase from 4k tonnes to 6k tonnes for the middle of October, if that is true there should be an ongoing increase in production depending on how the maintenance progresses.
m308, there's international prices and there's TZ prices, check the price that EDL is getting per tonne out of the gate, mainly because until proven different (which hopefully will soon be corrected) they have been a unreliable producer.
?29m sold and the bid still holds.
A 1k kms is a big difference to thousands of miles, and that was my point.
Tanga is also building a CFPS,
REALLY, I chose Tanga in reference to your 1000,s of miles but Tanga is being developed.
DRC,needs coal as do Rwanda and Burundi, if EDL ever get their act together they will be a supplier.
the distance from Mbeya to Tanga the northern port in Tanzania is 600miles about 15hrs of driving from Sumbawanga it is about 24 hours driving. lake Tanganyika has barging options to neighbouring countries.
Positive not no,predictive text.
It would be worthwhile reading the RNS's from 2018, Jan/Feb, the size of the potential orders 27 of Feb and the need to mine Namwele to fill those orders to realised what a failure this company has been up to this point.
The new management seem to have a more realistic approach with much lower expectations.
We have a huge resource with the extended area but up to now we have failed to be anywhere near a reliable coal producer, hence the current SP,any no positive update will change that.
GW, I agree, this until proven different, is another promise yet to be realised.
I've said in the past that until we can move coal out of the gate and become a reliable producer contracts will not be coming, even the 4k tonnes depends on repairs to plant and machinery which were supposed to be completed earlier this year.
After 5yrs of failed attempts at production and the hype of the power station you have to ask what were RS etc taking in their morning coffee.
They are talking of double shifts again which would seem one answer to increased production if the plant could stand the extra load.
So it's the interims and hopefully a good forward looking statement.
The worrying part is that production is dependant on the success of ongoing repairs and maintainable. Plant failure is and has always been the problem that they have yet to get on top of.
So no 5k tonnes this month and 12k tonnes reliant on a wash plant that is beginning to sound like a worn out rust heap.
Some months yet to go before we know if EDL can actually make any profit.
A bit of wishful thinking, after all it's what the market is waiting to hear as that will have an immediate affect on the SP.
I think that we are all waiting to see if they can achieve 5k tonnes this month that would be a major step in the right direction, the 12k tonnes will need to be seen to be believed. 1st week in Sep. we should know.
Hawkander, you will not get a reply to that Q, contracts will vary with each private customer.
Before the rapid rise in coal prices I recall a comment in one of the news releases that 6k tonnes would be cash flow positive but I could be wrong on that.
The only reference to cash from coal was a comment made by JM about 4yrs ago in one of the RNS releases.
He claimed that 1k ton of coal had an income value (not profit) of 100k, I can't remember whether that was $/£s, that was covering all expenses, transport etc. It will be there amongst the myriad of claims on production and double shifts to cope with the huge demand, as yet to be realised.
SoS, that was not a dig, I was saying this is the time you might just be right, we shall see what happens on the 5k this month.
I see no mention of local demand apart from the ongoing order. The export order (if they get it and prove they can fulfill that order) takes up the the capacity of the washer.
The obvious Q is, how are they going to cope with the expected high demand within TZ?
SoS will no doubt have the answer to that.
As always we rely on the next update??? 1st week in Sep.
BB, agreed, it's EDL's historic failures that are affecting the SP at this moment in time, I'm confident that this change in management and approach to production will put this right.
Unfortunately is a repeat of what has been promised over the last 4yrs. I do think that this is different but they will need to prove that they can get the coal out of the gate for this SP to take off, hence the lack of signed contracts, they will come!