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Pawn - "You don't seem to have any understanding of this co. at all jezzac, neither does sausage." - how to singlehandedly discredit yourself on an open public forum by bashing two longer term holders who clearly know plenty about our company.
You were bullish about the 4 May RNS regarding the contracting out of the mining ops yet you're now saying that was "stupid"?
The farming out of the coal mining wasn't stupid and was, potentially, the correct move after our continued abject failure since October 2017 to get economies of scale. However, it needed the right contract in place so that we maximised our returns, notably in a rising coal price market, and minimised our risks.
The fact this has now failed twice speaks volumes about the commercial naivety of our BoD. That's the most worrying bit.
Pawn - the way we extract our coal we could be getting $1000 a tonne and still not make money.
We cannot get economies of scale, proven by almost 5years of abject failure. You also have to factor in the endless disruption we seem to get during the rainy season.
Yes, the price of coal has rocketed recently, but your links are to the Newcastle price. I think that is based upon a calorific value of c6000kcal/kg. We certainly don't get $400 per tonne from fines and nowhere have I seen how much we're getting (average) per tonne for our washed coal. There is, in the depths of our historic RNSs, some calorific values - probably worth us finding that for comparison. There have also been lots of "trial" orders over the years. The fact those have materialised to nothing also tells its own story.
The issue is pretty simple. We can't get it out of the ground in sufficient quantities. Until our BoD can prove they can both do that and then sell it, I don't really see what has changed, except of course all the production costs now reside with us again....
Left hand, right hand - I suspect London, sorry Bournemouth, Tom is ambidextrous...
"Never been married"....except to himself. I've read some carp on this board over the years from our resident Dame Carolyn hater, but this week has simply topped the lot.
Good weekend all and best of luck to all genuine holders - some roller-coaster ride the last few years. Keep the faith. GLA
Bullish - sometimes there are indeed sensible and informed comments on these BBs, but investment cases are based on fundamentals, not opinions. MMs are way nearer to the knowledge than any PIs, so why would they need public forums when they have mates in companies?
I'm genuinely interested in what was your investment case when you bought in - was it summer 2019?
You did say in February that if nothing had happened in the next few months then the negativity could carry on!! It is simply a reflection of frustrated investors - nothing more. For instance I remember the days when Sausage was very bullish about Edenville - that's been driven out of him by continued failure buy our BoD. I understand that completely.
Good weekend all.
Bullish - nothing posted on here whether positive or negative will have any effect on the share price. You know that.
People are hacked off with the constant circle of mis-trust that has been created by our BoD, whose competence must seriously be in question. Even Wednesday's RNS suggested a re-shuffle.
MiningInvestor- I think the person you are referring to is known as one man and his dog....
Agree with the sentiments Pawn.
Not sure how long you have followed or been invested in Edenville but we have moved from one disaster to another. I see there's now no mention of any discussions about RCPP in our RNSs.....
The price of coal could certainly have an impact on the underlying business model, but it is also worth considering that we do have stockpiles (they are mentioned in the annual accounts, as they are a tangible asset). If demand is so high, we should have pretty much exhausted those stockpiles and then be fully reliant upon our processing of new coal. That is one reason I'm keen to see our annual accounts in June.
The quality of coal is very important as this will reflect in the price - it's mentioned somewhere in the depths of the RNSs - what worries me is this continued inability to actually sell it or customers taking it on trial and then seemingly not coming back.
Don't get me wrong this could turn around, but we have had years of failing and Alistair also seems to have simply fallen into the weeds of trying to get the business model working. The proposed strategic alliance with MarTek came and went without ever getting off the ground (and continued excuses......) and we now have a seemingly already strained 12month agreement with NextGen where, in my view, we have two key problems - they don't seem to be able to make the mining model work and we've sold our resources on to them too cheaply.
You really couldn't make it up.
Pawn - I've said many times on here there is a big difference between gross profit and net profit. Our accounts show how much we are losing each month both from a gross and net perspective. That's why I am so interested in our annual results due in June.
Four and a half years of trying to get the economies of scale on both ROM and sales and just over three months into a potentially transformational relationship (whereby we strip out our cost of sales) and it's clearly not working, still. Whatever happened to MarTek Global?
Upping production isn't quite that simple without significant investment. According to our BoD, that strategic money from last year (c£2.5m?) was earmarked for acquisitions, not continual rainbow chasing on our mining operations.
Sausage is not a deramper, he is a frustrated long term holder, like a fair few on here including me. He has been here a very long time and deserves respect for that alone, none more so than I expect he is over 95% down if he hasn't averaged lower / traded over the years like I have.
We need a wholesale change on the Board. They have continually failed (who agreed a flat fee as opposed to a %age of sales revenue in a rising energy price market......?) and replacing Rufus simply hasn't resulted in any tangible change for shareholders.
Wednesday's RNS wasn't positive given the history here since we started production in October 2017 and the market agrees.
I think somebody mentioned yesterday that the market had missed the significance of the RNS. Not sure it has.
I hope the whole BoD goes when they reshuffle / review it because they are starting to demonstrate incompetence of the highest order.
Bullish - it's those "meaningful amounts" that we've been promised since early 2018 and they have never transpired. Q1 quantities were nothing short of pitiful.
Its a rather meaningless RNS as it stands. I'll be interested to see our 2021 full year results next month. GLA
Pi - there's undoubtedly a reason why no mention of sales, revenue or profit in that RNS. Same reason we've lost money since 2017. We couldn't make it work and it appears NextGen haven't taken long to come to the same conclusions. What a mess.
To me it smacks more of Nextgen pushing back on the contract terms because they can't make it work. I suspect they have discovered in three and a half months the same thing longer term holders here have endured since October 2017....
Continued noise about increased interest in our coal etc etc - perhaps Alistair has never read the numerous RNSs from early 2018 - the one on 27th February is particularly telling. And what is "heightened demand"? It didn't exactly transpire in the first four months of this year, or in the last four and a half years.
We'll see how it turns out (more waiting....) but what worries me more are statements like "Given its current financial position Edenville now has capacity to expand operations organically and to meet this heightened demand". The only financial stability we have is what's left of that c£2.5m placing and we're still losing money each month. That money was meant for a new strategic investment / acquisitions - that RNS statement suggests they're looking at investing more in our mining operations.
I don't really see many positives in that RNS and the price action suggests neither does the market. A few block sells into that little spike too.
Need more Alistair - perhaps where our additional asset acquisitions are that were promised on 5 May 2021 or confirmed sales of coal at almost double the price it was three months ago?
Sausage - some very factual posts this morning.
With regards to our CEO - your views on Alistair and Rufus are similar.
Not disagreeing one bit, but I have also seen very similar CEO traits across numerous AIM stocks over the years.....just saying...
The Alternative Investment Market - I think we all know what that really means.
GLA
pawn - but our own funds are being diminished. It is the cost of sales we are now removing from the P&L (c£50k per month) but we still carry our admin expenses of a similar magnitude. We no longer pay for the mining, but we are paying for our BoD and all those head office costs...
Our Gross profit now is simply whatever we receive via the contractor per tonne. That needs to cover our admin expenses so we aren't yet out of the woods until Alistair actually gives us those figures...which he hasn't.
Half an update, in my view, but given we get the square root of nothing normally from our BoD, I'll take something as opposed to nothing.
Well, it's an update.
Not sure how much it really gives us in terms of our new operating model "..whilst the Company has not to-date benefited from material revenue generation, its existing cash resources have largely been maintained.." - Really?
While we still have admin expenses of c£50k per month - it's purely the cost of sales that now drop out of the P&L - we're losing money unless we're selling several thousand tonnes of coal, although we can't actually be sure exactly how much money we are getting per tonne, so what is our break even tonnage now?
Despite the rise. the RNS it is still smoke and mirrors.
The difficulty I have is we have sold c1,000 tonnes of coal in three months, from our stockpiles. That doesn't particularly suggest it's in quite as great demand as the "strong interest" and potential orders referred to in the interims.
Bit more info please Alistair. GLA
Gwynwin - not too dissimilar to my own thoughts, hence my post about end of June.
That said, nothing like a Tuesday morning RNS after a bank holiday....here's hoping
Annual results by end of June..
Edenville is the only share in my portfolio not showing red today - every cloud, eh??!! GLA
For those believers in secret RNS messages!!
esquimo - traders were expecting fireworks; company fundamentals currently portraying a slightly different story. Need to get back to 25p first. GLA
Tend to agree with you KD37; I was really positive about our Nextgen agreement but the realism of being in and out of this share since the Gemstones days tends to always leave me on the disappointed side.
Bullish - I am happy to see the rise, but there are a lot of holders on this board, me included, that have probably been here too long.
Our last placing was at 25p. Once we start to rise above that then perhaps things might get a bit more interesting.
Interesting start to the day GLA