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It's just talk though, Page.
We need tangible updates on our strategy going forward.# and, dare I say it, something positive about Rukwa ahead of the rainy season, which is pretty much upon us.
Our share price is drifting down.
The costs of sales in the interims suggests there has been a fair period of the six months where there were probably no or few personnel on site and potentially less hired plant. Plant and salary costs of our mining staff cant just go from £450k to £150k in relative six month periods.
If we have, as I suspect, actually mined less then it makes sense that a fair proportion of those sales are from stockpiles.
It's also telling that there were a few press releases yesterday about the reduced half year losses and increased revenues......nice PR spin....not that I'm a sceptic, eh?
As Pi states, it is difficult to be exact as there are no specific details. It's all interpretation from the figures.
We are looking oversold technically, but I suspect the market just sees this RNS as more of the same old Edenville. It's not good.
It's that magic diversification RNS we need that also states we're ditching the loss making mine, although we've been waiting since 5th May 2021 for it. GLA
I hope you're right BB, but already this is starting to smack of the jam tomorrow we've been fed for the last six years.
We've already backed ourselves into a corner with respect to how the market views us and given we're heading into the rainy season in four to five weeks' time, I can't personally see much progress on the operational side over the coming months.
It needs transformational news about diversification and other opportunities outside of Rukwa. Wasn't that the new dawn promised on 1 June?
Yep, same old. No news = bad news.
Thankfully I made a bit of money on the rise from 5p to 14p (no doubt our new investors did too.......), but I suspect the noise around "a new dawn" has caught some more mug punters on a spike. It is already looking like rinse and repeat.
The interesting figures in the Interims for me are the revenue and cost of sales. The costs are only £150k so far in six months. That suggests that they are either employing labour at about a third of the cost they have previously, or we have had long periods of having no workers on site at all......
And this
"The strategic investment received from Gathoni Muchai Investments and Q Global Commodities has ensured that the Company has been able to fund its ongoing working capital needs,,,,,"
So, yet again, we are utilising some of our strategic investment for supporting a loss making mine.
That's a really poor update this morning.
We're dropping because there is no news. Our BoD need to change the old Edenville market sentiment.
I'm not really doubting it given it's probably just a process hold up.
But what's your source SP7?
Page - you should still be able to buy under the EDL ticker
SP7 - they need to offload Rukwa. End of.
We talked about diversification way back in May 2021 but instead wasted £2.5m on shoring up the mining operations. We've lost c£1.5m a year since we started washed coal production in October 2017.
Coal isn't our future - we've wasted too much time and money on it already. Edenville was yesterday. Let's leave it there.
New name and new personnel should be supported by a new strategy - onwards and upwards. GLA
Bullish - it is exactly the same message that's been on the Edenville website for a long time......
https://edenville-energy.com/operations/
I'd like a RNS update on our production figures though.
Looking strong. GLA
Yes, it was this morning at Fasken's offices.
Anyone going?
I'm unfortunately house bound with a dodgy knee, again. I really do need to give up football properly.
To be fair the AGM is a tick box exercise as the BoD don't have the necessary authority under the Articles of Association for the quantum. The investment is already there. Who would not vote in favour of it? They would be mad.
Nick came with massive credibility and fanfare, but that didn't quite work out.
I get what you're saying, but the time for even any hint of excuses is over. It needs to be onwards and upwards. GLA
Bullish - I don't quite get that logic.
If there is positive operational news, they should be telling us. Why do they need to wait?
Historically here no news, or delayed news, is rarely good. Perhaps our revised BoD should quickly learn from the mistakes of Rufus, Alistair et al from the past and start to really grow the market confidence in us as a company.
I'm more bearish than you on the implications of warrants. If we dont get to 25p, they just expire. And if we're less than 25p, they can simply buy them on the open market. It's just an option, not an obligation.
Well, nothing unexpected financially with a c£150k loss per month. Still believe we need to be at about 8k tonnes during the summer season based on those figures.
I'm disappointed there is little on future strategy and diversification though.
Wasn't that the Covid extension esquimo?
The interims will be out tomorrow.
Well, I've had worse days as an Edenville investor!
Nice to see some positive movement in our share price again this week. GLA
Bullish - I've questioned the capacity need for a second washer as the one we have, apparently, has a throughput of 10k tonnes per month.
The info we have from our P&L suggests we need about £150k per month to break even. That's from 2019 which was the last stable production year when we did all the mining, so carried all the costs of sales etc. I suspect the cost of sales will have increased a little since then.
Our income is about £35 per tonne according to the last operational RNS (March) so you're looking at somewhere between 4000t and 5000t per month average to pop over the breakeven threshold. But....with the impact of the rainy season, which can be an unknown, I think we need to be upwards of 8000t a month in the six month dry season to give us a fighting chance of annual breakeven.
That's very rough and ready from the top of my head as I'm on the train.
Time will indeed tell, but like I posted earlier, I'm no fan of spurious investor reports when they don't appesr to pull out the facts we actually have in the public domain.
Interesting article. I'm always wary of these things when clearly the writer has done limited research. "March-May is the long rainy season in the country, so this is a problem for three months in every 12."
Nope, the seasonal rainfall in Tanzania isn't the same across the country. Our wet season is October to April - always has been (we had extensive floods in Jan 2020 due to rainfall..) and it always will be.
https://www.tanzaniatourism.go.tz/post/FACT/17
The best thing to have on these boards is people who have knowledge of the company....