RNS dated 4th October28 Apr 2018 15:18
Subscription to raise �1.25M
In this email by the looks of it management inflated expected production figures to assist in the placement of new shares.
"The Company will apply the net proceeds of the Subscription to the completion of construction work at, and for transport logistics for, the Company's Rukwa Coal Project (the "Project"), working capital to fund the increase in production over the next six months and, in the appropriate circumstances, initiating expansion options.
Management expects the net proceeds of the Subscription to take the Project through to full production and the generation of positive cash flows.
Since the decision in January 2017 to proceed with development, the Project has taken only 8 months to construct. Opening of the mine has already exposed considerable coal supplies in the upper seams. The plan is for initial production of 5,000 tonnes of washed coal in October, ramping up to at least 10,000 tonnes per month by January 2018."
I cannot remember any of the share holders being informed of Management reducing its expectations on the above production timescale, which I would have expected if a drastic descaling of the aforementioned production targets.