RE: EDL18 Jul 2018 11:30
You're missing the fact that confidence in Edenville and Rufus Short in particular has been battered over the last few months, and very little has been done to instil some belief. Any price rise over the last few months has been principally due to external factors, WB funding or change in broker.
Rufus set expectations at 10,000 tonnes a month by Jan 2018, and managed up to 4,000 tonnes a month. Expectations have now been reset to 10,000 tonnes a month by the end of 2018, so a year later than planned
Edenville signed a contract with an East African industrial user for a minimum 2,000 tonnes per month, Edenville can only produce up to 4,000 tonnes a month, so when they say "In addition, the Company is pleased to have commenced production on a new order for 4,000 tonnes of coal for use by a Tanzanian customer. If the coal is deemed suitable for the customer's needs having utilised this initial order, the customer has requested another 60,000 tonnes over a period of 6 months (an average of 10,000 tonnes per month)" How are Edenville thinking they can fulfil this 10,000 a month order on top of the minimum 2,000 tonnes a months for the already signed contract. The figures just don't add up, my opinion is that Edenville continually tell the market they are in discussions with potential customers, and have done since January 2017, so they can deem themselves in a closed period and thus can hide behind this closed period to dodge putting some skin in the game.
In April they raised £740,000, the majority of the funds raised will be deployed on expenditure, primarily capital expenditure, in connection with the expansion and enhancement of Edenville's current mining activities. In his scripted interview with Directors Talk Rufus stated pre-screening technology was going to be installed to improve throughput -HAS IT BEEN INSTALLED???? Rufus also stated an excavator was to be purchased HAS IT?? along with a fleet of trucks, HAVE THEY?? in order to open up new mining areas HAVE THEY BEEN OPENED UP? The market needs to be told if these 4 things have been successful
pre-screening technology installed?
excavator purchased?
fleet of truck obtained?
new mining areas opened up?
but Edenville fail to communicate any of these.
The problem is the getting it out of the ground in sufficient quantities and processing it efficiently to get the sellable product. There is always just one more problem to solve before they can achieve it, always something that stops them getting there, excavators, trucks, pre screening, washing, the freakin' weather, all the while salaries are getting paid and Edenville remain in a closed period because they continue to talk to potential customers.
It just doesn't add up for me, my opinion is that something sells a bit funny and it's not the bins
Sign In
Follow the stocks
