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GW, with the current production they are going to struggle , it would seem that a fund raise if not inevitable is looking highly likely.
I know it's early days but a figure of 6k tonnes was given some time back as a break even target (that may have changed since) .The figures just produced are a long way off that in fact they are struggling to reach 4k tonnes, to get over 6k tonnes would seem to be a high hurdle to get over judging by the production struggles they are experiencing. How can it be expected for the market to react differently to today's trades.
As much as I want the current managers to succeed it seems as in the past they need considerably more investment in reliable equipment.
If the demand really is there that should not be a problem.
Another 6/7 months to the end of the wet season to find out if they can actually be a reliable profitable coal producer. What's another year???
Just idling on the SP.
If the SP was about the same or higher with zero income, the current prospects of income potentially increasing would make this SP, cheap.
It's not exactly what we were hoping for after NLs podcast.
A customer identified, which is different to the several inquiries per day for coal in excess of 6k tonnes pm.
We now have a value for the fines, which is a positive.
I'm not so sure about the increased production if they can't guarantee the reliability of the existing machinery under more intensive usage. Without reliability, offtake agreements will be difficult.
Well we are at least selling coal, not long to know how the market takes that bit of news.
Traditional end to the period of silence!
Electricity is part of the infrastructure agreement, implementation/generation is at this moment in time not known.
Samia has tied herself into a financial aid agreement as part of China's belt and road initiative how that works out remains to be seen. She is no fool and is forging relationships with several country leaders which is the opposite to Magufuli.
I see mama Sam has patched up relationships with China after Magafulis debacle which ended the.power generation from Rukwa.
It will be interesting to see how that develops re infrastructure and power generation.
Well the first trading week of November is almost over and nothing positive to release to the market.
For want of repeating myself trades pre news release is always an indicator. So no offtake agreements signed as yet.
The obvious Q is , is the output as reliable as originally claimed,?
The answer to when? is when needs be.
What Bullish was saying, I assume, that we will not need to raise funds to keep the lights on but expansion is a different matter.
It's the current status we need news on.
Any offtake agreements would need to be released to the markets, so we can only assume that at this moment in time nothing has been agreed0
SoS, the answer to your Q, when will the next fund raise be?
I disagree with Bullish, I think the answer is obvious,
The next fund raise will be for expansion to increase coal production due to the increasing demand, which will be greater than it is at this moment in time. They have a huge resource and it won't be wasted.
SoS, I'm just passing one re your 13.01 post yesterday, with recommends from 2 like minded people.
Production did not start until the 1st week of Oct. at a rate of 4k tonnes pm, how could they produce that quantity in less than 2weeks. The RNS was quite clear so why are you harping on about 4k tonnes not being achieved by the middle of Oct. The reason for the delay was also explained
the sorry state of the plant etc.
The more you listen to the podcast the more promising it looks and tomorrow could see the update posted, unless they wait for 4 weeks of production which would take us into next week?
In the August RNS, the expected production would be 4k tonnes minimum increasing to 6k tonnes minimum after 2 months, reliant on the the plant working at capacity . That has not been the case due to the sorry state, poor maintenance of the plant . Production did not begin until Oct. Hence the delay. Having said that the repairs and upgrades have now been completed, which, is the reason for NLs confidence but cautious approach to production figures. As I have said we will know once the RNS is published whenever that is.
50k buy, someone likes it!
SoS, agreed, the difference now is we have a more honest, professional and capable management, who, on the face of it have the ruthlessness to clear the dross and run a business, something that EDL has failed to do in the past.
As you say we do need those figures. If NL is prepared to talk figures at the end of Oct. (as he stated in his podcast) he must be pretty confident, of course until we get that all important RNS we can only speculate.
Solid production,
Reliable volume,
Offtake agreements signed,
Improved at gate value = re-rate .
All of which we should know about with the next RNS which is due anytime now.
If the demand is there and the machines can cope with the extra load I have no doubt that the shifts will increase.
I don't think there was any production until the plant was fully repaired.
Judging by the podcast I did get the impression that there would be a steady increase in production by plant
improvements but extra shifts would be e needed to cope with increasing demand.
I am expecting the next RNS to be upbeat, although I did expect the trades to be increasing by now with that in mind, although in the past silence has always been the harbinger of bad news. Whatever the case we shall know in the next few days but apart from the silence and lack of market participation, which I put down to EDL's historical failures, I see no reason for a downbeat RNS.
In August the production target was 6k pm by mid October.
Due to the sorry state of the site and equipment production did not start until Oct.
Our CEO said in his podcast that he would be happy to talk about production rates at the end of the month (Oct).
If coal is flying out of the gate there's no sign that the market knows judging by the trades, or I should say lack of.
I would have thought such info would have leaked out somewhere down the line?
Well it now looks like the update will be next week.
I'm hoping that they are better prepared for the wet season than previous teams as the rains are due to start with heavy rains forecast in two weeks and we know the problems that causes and there's Kenya with no water and the stench of dead animals filling the air.