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Not on my screen, 10-50 was the ask this am.
smells of a production update.
The last RNS stated that only a modest amount of existing cash has been used to expand production so cash in the bank!
Any coal produced can be sold due to existing demand.
Why then would they need a placing and why the drop in the SP, the next couple in of days should provide the answers to those Qs
The other reason (possibly is if one of our investors has dumped their holding) leading to a holding RNS.
that has leaked.
Sorry all the mining equipment.
All the mining back into service, an extra excavator in service plus the need for extra haulage, says to me that coal production has been continuing this month, if something has gone wrong with nil production then that would be or could be the reason for the drop, if that is not the case then with the cash in the bank and coal going out of the gate we should not be at this level. In the next 3/4 days we should have the answer. I don't think the results are the cause as it is no secret that they can be nothing else but poor.
The 5k tonnes is targeted for late 3rd Q.
If it takes extra machinery and haulage to hit that target why with the original haulage contractor did they not achieve this in 17/18?
I would not be surprised by an RNS being issued with current production at the end of this week, to soften the impact of the results, can you imagine what the interims will be like, so we do need solid production, if that gets going the 5k figure might just be conservative!
Read what you will, it is obvious that with the existing machinery now operational and the need for more haulage says to me that they are digging up the black stuff, I did not mention any amounts huge or otherwise but anything above the previous zero will have an impact on the SP, as I've said previously the next update will give a clearer picture.
They do need to convince the market and potential customers that they are a reliable coal producer that I accept as it is something that they have failed miserably to do in the last 5yrs.
I'm going for a production update which should take it up from these levels, to that end I have taken my holding back up to where it was at half the price that I sold at.
I think you will find the 47k trade is a buy.
The RNS states that all equipment has been brought back into service, the addition of the excavator plus the need for more haulage would suggest that coal production is going ahead. As always the update is needed to verify that.
Any production now will have an impact on this SP.
We will know by the end of next week.
T72, you are correct, I am assuming that trucks would not present a major problem unless they argue over the cost.
The big question for me is the targets for production are not great and why were two contractors unable to produce any coal , after all ILTL did carry out due diligence I'm not so sure about Nextgen. Whatever the reasons EDL now seem to think that they can do better at production after failing for 4/5yrs.
The results will be what people expect.
EDL haven't bought three trucks plus an excavator to have them sat in the parking lot, results next week with (hopefully) an update on production, assuming that is the reason for the expenditure on machinery.
Not long before the month end, we shall see what the outcome is.
welloil, I agree and that is the reason after 10 years following FDBK I have added it to my portfolio, traders/shorters whatever they are, are interested on what is current or what they can create hence the current run of trades.
Unable to attend, but having worked for the NHS I still have an interest in their progress.
Thanks for the photo connection.
As an investor I'm quite happy to let the traders have their day, my intention is to keep adding.
Regards E.
for ten years plus, the SP at the time was 1/1.5p, it is now under 1p.
T.O. is to give a presentation today I believe, I am assuming that the results will be released any day as we are now into the middle of the month. I have only recently added this to my portfolio expecting the update to have quite an impact on the SP.
The prospects for this company over the coming years seem to be huge, after waiting ten years any entry now will be well rewarded, just my view.
Pawn,I think with EDL's change of focus it is a buy for me depending on the next update. I did sell some EDL to start a stake build in FDBK after following it for 10yrs plus. They are releasing a update in the next two weeks which will have an impact on the SP, If you are looking for a more focussed Co, worth a look!
As a long term holder I can understand the frustration of SOAS.
EDL have failed to produce coal and any viable income, their recent predictions (Oct,Nov,Dec, 21) have failed.
The two contract miners ILTL and Nextgen have been unable to produce coal, for whatever reasons, both ventures have been a failure.
Now it would seem that cash in the bank can be released to expand production, I can't imagine that happening without the ok from the investors. It would seem that the recent rise in the price of coal has persuaded them that currently coal has a lucrative future.
The results are due this month, the question is will we get an update before they are released, my wild guess is yes.
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They still have a long way to go to convince the market that they can produce 50% of the target they predicted 4yrs ago, their history of failed production and sales means they have a uphill task in front of them. If they succeed it will make the current SP very cheap.
SoS, I'm sure that EDL will be more than delighted to join you in mutual back slapping if they ever hit production targets!
Re UPENDO, they partnered with EDL to mine Namwele in 2018, March of that year was the expected date for production, that was followed by silence until UPENDO decided to sue EDL for non payment of fees, I don't recall any further information on that.
The talk now regarding UPENDO is of a 10% holding in EDL, we shall have to see how that works out.
June could see another update before the results are published, if they haven't managed to produce coal by then they will be running out of the extended dry season.