RE: Positive Revenue Stream..8 Jul 2019 14:58
from last year and they have made several improvements since:
Processing plant
The Company’s wash plant and associated equipment is currently running at a throughput of 30 to 40 tonnes per hour, operating six days a week for 8 to 10 hours a day. Edenville is therefore in a position to process 8,000 to 10,000 tonnes of mined material per month.
During the ramp up of operations higher than expected amounts of mudstone and fines were encountered, which reduced throughput in the processing plant. As a result, unit processing costs were marginally higher than management expected, however, this was offset by lower than expected unit mining costs.
Subsequently the Company intends to install both a Lamella water treatment system and pre-screen technology to improve the overall efficiency of the plant. The Lamella water treatment system will remove mudstone and coal fines from the water, providing the plant with cleaner water and the pre-screen technology will pre-screen the mined material, removing coal fines before they reach the wash plant. Once implemented, hourly production rates should increase to 80 to 100 tonnes per hour, thereby bringing operational costs per tonne back in line with management expectations, in parallel with the plant reaching its full production capacity.
Coal orders
Throughout January we have continued to process and ship the bulk preliminary orders detailed in the announcements made on 23 November 2017 and 8 January 2018. We remain in detailed discussions regarding contractual terms with several of these groups and others regarding potential long-term orders that total over 10,000 tonnes of coal per month.
Additionally, the Company has received further orders for trial material in the last fortnight. These requests include one for 4,000 tonnes of coal from an industrial customer. This customer has indicated that, if the product is demonstrated to be appropriate for their needs in trials, they would seek to increase their order.
In aggregate, trial and other orders for approximately 9,000 tonnes of coal have now been received and these have either been shipped or are in the process of being fulfilled. All have been, or are being, supplied on a commercial, paid for, basis.