Edenville Energy Plc (AIM: EDL) wishes to provide an update on operations at its 100% owned Rukwa coal project in Tanzania (“Rukwa”).
From 1 February 2022 to 30 April 2022, 610 tonnes of washed coal was sold and 453 tonnes of fines were sold ex-stockpile. Little Run of Mine (“ROM”) coal was mined given the period covered the end of the rainy season and delays in the full operational handover to the new contract miner. The Company believes the operational issues impacting production are being addressed, or will be so in the near term, enabling the Company to focus on achieving its targeted production rates. The Company continues to see growing demand for its coal, at increasingly favourable prices, with a number of buyers keen to enter into offtake agreements upon confirmation of stable production and surety of supply from operations.
The contract mining agreement announced on 3 February 2022 placed the production and operational costs on the contractor and accordingly whilst the Company has not to-date benefited from material revenue generation, its existing cash resources have largely been maintained. This has ensured the Company remains in a healthy financial position as it continues to review additional investment and operational opportunities. At the same time, the Company is in discussions with its contract mining partner to ensure that the Company’s operations at Rukwa are progressed on a timely basis.
Alistair Muir, CEO of Edenville, commented: “Rukwa has the potential to produce significant free-cash to Edenville from its operations, particularly in the global coal pricing environment. Whilst we are yet to witness the economic benefits in a material way, by entering into a contracting arrangement we have largely mitigated the direct financial liabilities during this period of transition, enabling us to conserve our cash and focus on future transactions. As we move into a long dry season, we are focused on materially increasing production and believe we will be successful in delivering on this objective.”
For further information please contact:
Edenville Energy Plc
Jeff Malaihollo – Chairman | Alistair Muir – CEO
+44 (0) 20 3934 6630
Strand Hanson Limited (Financial and Nominated Adviser)
James Harris | Rory Murphy
+44 (0) 02 7409 3494
Tavira Securities Limited (Broker)
Oliver Stansfield | Jonathan Evans
+44 (0) 20 7100 5100
IFC Advisory Limited (Financial PR and IR)
Tim Metcalfe | Florence Chandler
+44 (0) 20 3934 6630