Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
18 May 2021
EGDON RESOURCES PLC
("Egdon" or "the Company")
Wressle Development Update
Egdon Resources plc (AIM: EDR, "Egdon") is pleased to advise that it has received all necessary consents for the commencement of the proppant squeeze operation at the Wressle Oil Field Development ("Wressle") located in North Lincolnshire Licences PEDL180 and PEDL182 where the Company holds a 30% operated interest.
The proppant squeeze operation is expected to optimise oil production from the Ashover Grit reservoir, one of the three productive reservoirs tested, to a constrained gross rate of 500 barrels of oil per day (150 bopd net to Egdon).
The operation is expected to be completed and optimum oil production achieved during June 2021.
The Wressle-1 well has been on 24 hour test production since late January with produced oil transported by road tanker to the Phillips 66 Humber refinery and sold under Egdon's existing oil sales contract.
Production rates have continued to increase and have exceeded our expectations with high quality free flowing oil being produced and no water present. All data confirms the independent prediction that over 500 bopd will be achievable following the proppant squeeze. The well will continue operating on test production until the proppant squeeze operation is undertaken.
Commenting on the news Mark Abbott, Managing Director of Egdon Resources said;L
"We are delighted to have received all the required regulatory consents for the proppant squeeze operation at Wressle. When successfully completed, this will realise the full potential from the Ashover Grit reservoir and is expected to increase Egdon's net production to 150 bopd at a time of increasingly strong oil prices leading to a step change in our cash flow."
It's all in the RNS dated the 18th May.
Looks like the Wressle application has appeared on the EA site today:
https://www.gov.uk/government/publications/dn15-0bd-egdon-resources-uk-limited-environmental-permit-application-advertisement-eprab3609xxv004
Was in Ashby, small amount of fall out, but moved out bottesford way now, all good now.
Nearly reaches you up near college way, :)
Hey Tro,
That made me laugh.
I can see that you really want to be on that list, you know you want to :)
Only joking, its that fresh air from the scunny steel works that keep us sane :)
Safety,
If the monthly output gets to 320T/Month, I think you will be feeling a lot more than cheery, super rich comes to mind :)
GUG,
Considering you appear to have numerous free hours during the day to sit on this BB, how about sorting out that list from High to Low guestimates or the other way round if it suits you??
How about it?
GUG,
That's cheating, you can't use the same figure as me for the tungsten :) :)
My figures were quoted on the 5th March.
I am not competitive, honestly :)
GIT/GUG,
As per my previous post on the 5th March 2021 at 14:36, please put me down for the following:-
"Well let's get the ball rolling early.
Put me down for the following:-
9weeks at 12t/week tungsten=108T
9weeks at 4t/week tin= 36T
Total tungsten and tin concentrate =144T
Hope to win this again ????"
Morning All,
Without making things hugely complicated, does anyone have a rough idea of the following:
1. Monthly interest debt repayment? ( All loans currently in place)
2. Processing costs per Ton of the raw material from blasting, excavation, trucking and running it through the processing plant? ( Was a figure per T or MTU previously provided?)
3. All associated management fees per month?
4. Any other associated fees they could be added into the equation to be considered?
If roughly all of the above is known, then it's just a case of working out what needs to be processed to break even and anything in addition will indicate we are going in the right direction.
If we don't have a general idea of the above, then we don't know where we need to be with regards to figures each month.
If would be good if we can get to a general agreement of costs for items 1-4 in an amicable sensible discussion method.
Have to go, log in later to see if anyone able to help me out, bye all.
Q4 2020 Production Report ( 3 Months)APT Price Say $225.00 per MTU (Maybe slightly more)
80% of $225 per MTU = $180.00 per MTU
66.98T = 6698 MTU (This is what is within 100T Tungsten ("WO3") concentrate)
6698 MTU x $180/mtu = $1,205,640 ( For 3 Months production)
('dmt' - dry metric tonnes, 'mtu' - metric tonne unit (1 mtu = 10kg of metal)
1T = 1,000Kg dived by 10 = 100MTU
So Lets work out what needs to be done to achieve 100T (10,000MTU) of WO3 per Month:-
10,000 Minimum of MTU(10kg of metal) to be Achieved each Month
100T = 10,000 MTU
10,000 MTU x $180/mtu = $1,800,000
To achieve 10,000 MTU, WRES would have to produce 149.4T of 65% Grade WO3 concentrate grade (%) each month.
Then there is the TIN credit.
Then there is the whole processing / production / management cost to take into account.
This is working on the calculation of $225 per MTU, which currently the price is higher and expected to continue to rise.
Thats my simple understanding of it all.
What total utter Crap!!!!!!!!!!
As if someone from WRES would respond on financial information!
Still Laughing now, sodding hilarious.
If people can not understand what is there in black & white in the FID, then WOW, it is so simple.
Achieve the required percentage grade/purity, and then you get paid 80% of the APT price, either current value or what the company has agreed a contract term to supply for.
The statement in one of the last RNS "STATED" they had achieved a better price due to the "PURITY" of the Tin Concentrate they had produced. WRES are not going to get paid the full price if the PURITY is not to the required percentage, and as "STATED" the recovery is getting better month on month regarding the purity of the Concentrate.
Anyone got MM email address, as I am sure he will respond to all enquiries too, yes whatever!!
It certainly would.
Well let's get the ball rolling early.
Put me down for the following:-
9weeks at 12t/week tungsten=108T
9weeks at 4t/week tin= 36T
Total tungsten and tin concentrate =144T
Hope to win this again ????
Safetyman,
At the moment according to the last RNS, the following has been produced and shipped/ programmed to be shipped.
2x20t tungsten concentrate.(last 2 months)
1x20t tin concentrate
1x20t due to be shipped 8th March 2021.
At the moment 80t let's say from 8th March.
18 working days left from 8th march, I struggle to see how they are going to beat last quarter of 135t combined??
I appreciate the kit is running far better now, but that still appears a tall task considering they will be processing the lower grade ore.
There's some naughty little devils about today, GIT would be in his full element today, hope he is ok, not been on BB for a while.
This is the very important statement within the RNS
" Concentrator plant recovery for tungsten during February was greater than 60% - an all-time high"
Which means the full asking price for the concentrate can be achieved.
Not long now before the quarterly production update is released at the beginning of March as noted below.
"This last year has proved extremely positive for AfriTin, with tin production achieving design capabilities for Stage I at Uis ahead of year-end. This was a defining milestone for the Company, and I am delighted to report that the strong tin concentrate production levels have been maintained since November 2020.
The first quarterly update on the production performance will be made to the market at the beginning of March 2021. The strong performance at Uis has coincided with the tin price hitting new recent highs, breaking through the ceiling of US$23,000 per tonne for the first time since 2014. The main drivers behind the price increase are the ever-growing demand from electronics and electric vehicles, alongside the low supply of tin inventories.
"These contributing factors have enabled AfriTin to announce today that it will continue its tin offtake agreement for Uis with Thaisarco for a further three years. In addition, the Company is also pleased to have concluded a tantalum offtake agreement with AfriMet which will become a second product alongside our tin concentrate this year. AfriTin is delighted by both votes of confidence, from two leaders in the global and African markets and looks forward to continuing these relationships."
That is exactly the point I was trying to make to GUG which he clearly does not understand.
Concentrate is not sold as a 100% pure metal, the main parts in an RNS he does not read, you clearly pointed that out, thank you.