Member Info for ogm4

More detailed benefits coming from large-scale power generation based on local coal:

Provides in excess of US$20 billion to GDP.
Provides in excess of US$7 billion in taxes / royalties to the Government
Creates up to 50,000 new jobs in Bangladesh

a £ 12k buy this morning

This country needs more and more power supply with all these upcoming foreign investments

Bangladesh enjoys foreign investment tailwind for economic boom
Japan and China lead surge as consumption-dependent growth takes step forward

A.Z.M. ANAS, Contributing writer

July 12, 2019 17:59 JST

https://asia.nikkei.com/Economy/Bangladesh-enjoys-foreign-investment-tailwind-for-economic-boom

or at least a few new images on twitter

Today's MOU provides for "the formation of a strategic partnership to jointly develop the Company's proposed world class high grade coal resource of 572 million tonnes (JORC 2004 compliant) at the Phulbari Coal and Power Project in North-West Bangladesh (the "Project")." This with a validity of 6 months.

Earlier this year they agreed on two Joint Venture Agreements for twice the devlopment of 2×1,000MW Coal-Fired Power Plan Projects with a validity of 12 months, of which today we're already halfway through.

My conclusion ? The developments are accelerating it seems. Indeed, this time stating only a term of 6 months bodes very well in my opinion. You choose for 6 months in a rather advanced stage when you're sure you achieving the timeline. If more uncertain you would choose for 12 or 24 months for example. Just my opinion.

she's picking up guys…

Let's see what happens later this afternoon...

That is a very low public free float !

Got in as well today… massive upside here.
Been in/out of this over the years, but it seems it is all coming together now

"Following the completion of the funding the Project is now well placed to move forward in 2019 to increase production and provide a quality product to its customers. "

Having gone through the operational and financial challenges in 2018 and early 2019, I believe the Company is now in the best position for many years. It is now a coal producing company, with a wide range of customers and monthly income. We have all the equipment and manpower to bring our production to the maximum capacity of the current plant. In addition the Company now has supportive institutional shareholders. Looking ahead in 2019, our short-term goal is to open the Northern Mining Area, increase our production to reach break even point in Q3 2019 and be cash flow positive within the next 10 months. "

Note it is already Q3 ... :-)

Expect more updates soon.

The Northern coal deposit is already there, overburden stripped away and additional production increase already taking place. In order to get to the 10,000 tons per month benchmark, you only need to truck away an additional 30-40 trucks per day I reccon based on some quick calculations. Looking at the pictures there seems an abundance of coal present, so I expect a significant production ramp up over the coming weeks. This apart from waste, treatment considerations, equipment resources, etc.

SP creeping upwards today, North area full of coal, expect to break even in September really

An additional 2,000 tons per month equates to 66 tons per day extra.
With an density of 700-900kg/m3 for Bituminous Thermal Coal you're probably talking about 80 - 100 m3.
Therefore my best estimate is in order for 2,000 tons extra to get to break even point you probably need an additional say 5 - 10 truck loads per day on average, which does not seem that much more resources required to achieve this.

Their website states: "The Mine is currently producing up to 4,000t per month of coal for sale and the Company is seeking to increase production up to 10,000t per month in the near term."
So going from 4 to 6,000 ton per month seems reasonable with the northern area now also producing.

Can someone please inform me what sort of sales price we're looking at per ton for the different types / quality ?
What number can we use 55 - 60 USD /ton ?
So a breakeven production of 6000 ton/month would equate to approx. 4 Million USD revenue per year ?
Or are my assumptions wrong ?

Many thanks.

"I bet they'll reach breakeven of 6k tonnes a month well before 10 month. 40m thick seams of good quality coal only 2m from the surface. Sounds like Rufus has learnt to under promise and over deliver."

Northern Area has thicker seams (in areas up to 40m thick starting about 2 meters from surface) than those previously mined;

Current gold price well on its way at 1,340 USD/ozt…

http://www.infomine.com/investment/metal-prices/gold/

Happy days indeed Daz! :-)