Edenville Energy plc (AIM: EDL), the company developing a coal project in southwest Tanzania, announces the Company’s unaudited interim results for the six months ended 30 June 2018.
Key Period Highlights
- Commercial mining and wash plant operation start full production phase with a variety of sized coal products being produced
- From 1 January 2018 to 30 June 2018 31,169 tonnes of Run of Mine (“ROM”) coal processed, producing 8,808 tonnes of washed coal and 13,775 tonnes of fine coal. Of the 8,808 tonnes of washed coal, 4,221 tonnes were shipped
- Revenue recognised for the first time
- Revenues from 1 January 2018 to 16 April 2018 are off-set against development costs as the mine was being tested to ensure it functioned as intended.
- From 17 April 2018 to 30 June 2018 the mine produced 5,348 tonnes of washed coal and 7,004 tonnes of fine coal. Of the 5,348 tonnes of washed coal 2,314 tonnes were sold, resulting in recognised revenue of £59,310
- Company raised £740,000 (before expenses) at 0.35 pence per share in April 2018
- US$455m Powerline financing by World Bank approved which will provide key infrastructure for the planned power plant
- MOU with Sinohydro extended
Post Period Highlights
- Two year contract for coal supply of 4,000 tonnes per month secured
- From 1 July 2018 to 17 September 20,945 tonnes of Run of Mine (“ROM”) coal processed, producing 6,186 tonnes of washed coal and 9,523 tonnes of fine coal. Of the 6,186 tonnes of washed coal, 4,947 tonnes were shipped
- Average daily shipments (calculated on a calendar day basis) of coal of 63 tonnes post H1 period, up from 51 tonnes in July 2018 and 23 tonnes for the first half
- Plant upgrade tasks nearing completion
Jeff Malaihollo, Chairman of Edenville, commented: “Edenville continued to make significant progress in the first half of 2018, with commercial coal production starting in earnest. Throughout the period and more recently we have continued to refine the coal production process and install additional equipment, allowing increased production to satisfy the demand we are seeing. With progress also being made on the power plant project following the announcement of the power line infrastructure financing, I believe Edenville is well positioned for the future.”
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