RE: Positive Revenue Stream..18 Jul 2019 10:22
my post 8th July
"if they implemented 24 hour per day they could double output in a flash"
Double shift! SO THE BOTTLE NECK IS WASHING!!! now is they don't have to wash say 25% that reduces the bottle neck AND a double shift facilitates more washing anyway! Mining is all about hours spent twiddling levers and twiddling them fast and efficiently. I believe with the northern area delivering way above expectations they can ramp up much faster thean they have indicated so as to avoid missing guidance. Next updates will be coming in weeks and from here it looks VERY positive. ITS A BUY RATING FROM ME!
The coal measures appear consistent with only moderate amounts of material such as mudstone currently seen within the seam structure. The Directors believe that a portion of this coal has the potential to be screened and sold unwashed, owing to its already high calorific value.
The wash plant is continuing to increase production from the low levels in Q2 2019, averaging 60 tonnes of washed product produced from the original mining area per day (excluding any coal mined from the Northern Area), on a single shift.
· Average daily washed coal production is increasing, with 730 tonnes produced from 1 July to 15 July 2019, including a record daily production of 102 tonnes of washed coal on 15 July 2019 from a single shift.
Once sufficient material from the Northern Area is available, the Directors expect the wash plant to move back to a double shift basis. As well as increased throughput rates, the Directors believe the recent upgrades to the plant will result in less plant downtime and allow a more consistent production profile to be achieved at the Project.
Rufus Short, Chief Executive Officer of Edenville, commented: "It has only been three weeks since mining in the Northern Area commenced and extensive coal measures have already been uncovered. This is encouraging and the coal quality has so far exceeded what we expected from measures so close to the surface. As the Project is developed further, we believe that significant quantities of coal can be extracted from the Northern Area with our current mining fleet. This, coupled with the plant improvements we have made, should enable Edenville to become cashflow positive within the next 9 months, as we target an initial washed coal production of 6,000 tonnes per month, which we consider to be a breakeven level, increasing to 10,000+ tonnes per month thereafter."
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